Why do Services Cluster Downtown? 12.4

Central Business District (CBD) usually one of the oldest areas of the city where retail and office activities agglomerate (only 1% of space) Consumer and business services are attracted to the CBD because of its accessibility. Many retail offices tend to locate on the street-level floors of skyscrapers in larger cities. Downtown Toronto

100% corner Intersection in CBD with clustered department stores High rent Most accessibility for the most customers

Retail Services in the CBD 3 types of retail services cluster in the CBD: services with high thresholds services with high ranges services that serve downtown workers Large dept stores with high thresholds are most likely to be found in suburban malls today. Faneuil Market in Boston has been updated & preserved allowing it to draw customers from long distances (high ranges). Many downtown services focus on serving the people who work there.

Producer Services Many producer service cluster downtown because many professionals (lawyers, engineers, architects) still want face to face contact with clients. Downtown DeLand

High Land Cost in the CBD As a result of high land costs, many American CBDs are characterized by vertical development above the ground. (skyscrapers) Land values in the CBD are high primarily because there is competition for limited space… especially in cities like Tokyo Tokyo, JapanAtlanta, Ga.

Intensive Land Use Many large cities also use vertical space below the ground! Subway station on the Washington Metro Cities like Toronto have built underground pedestrian walkways and shops beneath the downtown area. Underground parking

EXCEPT WASHINGTON, D.C. No building can be bigger than the Capitol Dome

Decline in Manufacturing Industrial land use is typically EXCLUDED from North American CBDs because modern industries require large parcels of land to spread operations among one-story buildings.

Lack of Residents Public transportation makes sense in CBDs because each traveler takes up less space! Public transportation near Boston University Urban areas are characterized by a high degree of commuting, since few people actually live in the CBD. Los Angles highway at rush hour

European CBDs Restrict Height on buildings Attempt to preserve heritage/history –Warsaw, Poland –Paris, France Tour Montparnasse

Suburbanization of Business Many businesses have left the CBD for peripheral locations at the edge of large metropolitan areas. Ex. Malls “Edge” cities have been developed especially along the beltways of large U.S. cities.