Unit 7: Cities and Urban Land Use

Unit 7: Cities and Urban Land Use
Ch. 12: Services

Services Tertiary sector – most people in MDCs, less than 10% in LDCs
Case study: Call centers in India – speak English, take on N. American names, work at night, accept low wages, high skill/tech knowledge Service – activity that fulfills needs/wants in exchange for money Settlement – permanent collection of buildings for dwelling, working, & obtaining services (<1% of Earth’s area; majority of Earth’s people) Settlements vary in size from rural village to bustling metropolis 1 factor: proximity to market (resources inconsequential) Market factors: # of consumers, demand, wealth, accessibility, etc. Globalization of services (MDCs vs. LDCs; within MDCs – large cities vs. small towns)

Key Issue #1: Where Did Services Originate?
3 Types of Services: Consumer services – ½ U.S. jobs, provide to individual consumers Retail & Wholesale – 11% in U.S.; department stores, groceries, motor vehicle sales/service, hardware stores, clothing stores; wholesale – provides merchandise to retailers Education – 11% in U.S.; 2/3 public, 1/3 private; pre-K through university Health – 10% in U.S.; hospitals, doctor’s offices, nursing homes, clinics Leisure & Hospitality – 10% in U.S.; ¾ in restaurants & bars; ¼ in lodging & entertainment (amusement parks, sports, music, movies, TV, etc.)

3 Types of Services: Business services – ¼ U.S. jobs, provide to other businesses Financial – 6% in U.S.; finance (banks, advisors, stocks), insurance, real estate Professional – 13% in U.S.; management, technical (law, accounting, architecture/design, consulting, engineering), support (clerical, secretarial, custodial) Transportation & Similar – 6% in U.S. Transportation – trucking, air, shipping, logistics, etc. Information – publishing, media, communications, broadcasting Utilities – electricity, water, sanitation, etc.

3 Types of Services: Public Services – provide security, protection, & other services for citizens & businesses (government owned & operated); 16% of U.S. (9% excluding public education) 1/6 work for Federal Government ¼ for state governments 3/5 for local governments (counties, cities, towns) Distinction among services can be difficult Individuals use business services (lawyers, banks, etc.) Businesses use consumer services (hotels, buying supplies, etc.) Public service vs. private business (utilities, education, transportation, leisure – national parks/etc.)

Change in Number of Employees Growth in tertiary (and beyond), decline in secondary & primary in U.S. / MDCs Growth in consumer services Fast in healthcare, recreation/entertainment Slow in retail (demand relatively constant) Growth in business services Fast in engineering, managerial, law, data processing, advertising, temporary workers Slow in finance, transportation (improved efficiency) Constant in public services (change in %s) Decline in federal government Growth in state & local (decentralization)

Origin of Services Services clustered in settlements (probably consumer & public services 1st, business later) Early Consumer Services Bury the dead, religious functions Building of temples surrounded by other structures Housing, workshops for tools/utensils/clothing/pottery Education services (schools, libraries, theaters, museums) Manufacturing (industry) then selling (retail) Specialization of jobs (repairmen, merchants, trainers, etc.) Early Public Services Political leaders (control of land) – often early political leaders had religious functions too Military (security, land control, resource control, expansion) Build walls & other defensive structures (important until gunpowder) Defense center – Pentagon in U.S., Kremlin in Moscow (Russia)

Origin of Services Early Business Services Warehousing of food, resources Exchange of resources among settlements (trade) Establish fair prices/exchange, record keeping, currency system Services in Contemporary Rural Settlements Development of settlements began with agriculture (clustering for food, surplus produced, job specialization) Clustered rural settlement - # of families in close proximity to each other with farms/fields surrounding houses & villages (MOST COMMON IN THE WORLD) Dispersed rural settlement – more common in N. America, farmers living on individual farms isolated from neighbors

Services in Contemporary Rural Settlements Clustered Rural Settlements Hamlets or villages (small towns) Includes homes, barns, tool sheds, other farm structures, religious buildings, schools, shops, public & business services Each person is allocated strips of land (owned, rented, farm collective, own by a lord but worked by peasants) When population grew too large, new settlements were founded nearby – place names of satellites often reflected parent settlement (Ex. In England: Offley, Great Offley, Little Offley, Offley Grange, Offley Cross, Offley Bottom, etc) Arranged in patterns: Circular Rural Settlements – central open space surrounded by structures; kraal in southern Africa (with animal corrals in center); enkangs & bomas in eastern Africa; Gewandorf in Germany Linear Rural Settlements – clustered along a road or river for communication & water; fields behind buildings; French long-lots in Quebec & Louisiana (perpendicular to river with parallel roads)

Services in Contemporary Rural Settlements Clustered Rural Settlements Colonial America Clustered Settlements 3 areas: New England, Southeast, Middle Atlantic New England – centered on a common (open space); surrounded by homes, churches, schools, public buildings Clustered settlements favored in New England because colonists traveled in groups; land given to group; reinforced cultural/religious values; defense against Natives; outsiders rarely given land People owned several discontinuous parcels of land for different activities; common woodland for village Growth led to nearby new settlements In Southeast – dispersed farms with a clustered feel mansion surrounded by service buildings (laundry, kitchen, dairy, bakery) & other buildings (slave quarters, flour mill, carpenter shop, blacksmith, stables, coach house, storage)

Services in Contemporary Rural Settlements Dispersed Rural Settlements More common in last 200 years in U.S. & U.K. Considered more efficient in developed societies In the U.S. Middle Atlantic colonies (PA, MD, DE, NJ, NY) – dispersed settlements because people traveled as individuals or families, not large groups (more diverse) Midwest – pioneers bought large tracts of land (Land Ordinance) New England – in 1700s descendants of groups less interested in maintaining cultural/religious values and homogeneity; sold land without prejudice to background; new immigrants Disadvantages of discontinuous fields in clustered settlements – more roads needed, longer travel time, not efficient with larger population

Services in Contemporary Rural Settlements Dispersed Rural Settlements Enclosure Movement Conversion of clustered settlements to dispersed settlements in U.K (improved agricultural efficiency) Consolidated isolated parcels into 1 large farm (sometimes forced); farmers moved to cities for factory jobs Efficiency improved – less wasted time moving from field to field Coincided with Industrial Revolution (more farm machinery) Destroyed rural life Rapid urbanization Some villages abandoned, others boomed near new large farms

Tourism as a Consumer Service Can damage environment (clearing, waste, pollution) Can damage local diversity (traditional values abandoned for popular customs, new buildings, jobs, etc.) Can exploit local diversity (encourage locals to practice traditions to amuse tourists, source of income) Unclear economic advantage: Low wages Often seasonal work Land used for resorts (hotels, golf courses, beaches, etc.) instead of farming/industry/local services Vulnerable to weather, terrorism, changing preferences Profits mostly enjoyed by transnational corporations Ecotourism – tourism encouraging natural activities and minimizing impact on environment (hiking, guided tours, safaris) Costa Rica, Ecuador, Belize, South Africa, Kenya, other C. & S. American & other African Nepal – Mt. Everest/Himalayas

Key Issue #2: Why Are Consumer Services Distributed in a Regular Pattern?
Consumer services are distributed in a more regular pattern than business services (more specialized) Central Place Theory (Walter Christaller, 1930s) Central place – market center for exchange of goods and services by people for surrounding area (located to maximize accessibility) Central places compete with each other for customers (creates regular patterns) Central place theory explains distribution and regular pattern of settlements in MDCs Assumes flat, featureless landscape Assumes evenly distributed population & resources; cities equidistant Assumes proportionate wealth & demand for goods/services Assumes customers always travel to nearest central place Services cluster in settlements Larger settlements are fewer and farther away from each other Smaller settlements are more numerous and closer Larger settlements have more services (quantity & diversity) Smaller settlements have fewer services

Central Place Theory (Walter Christaller, 1930s) Market Area of Service Market area (or hinterland) is the area surrounding a service that contains its customers A market area is a good example of a functional/nodal region Can be used for around individual services or around entire cities Closer to a node, the more likely to use the service Farther away, less likely to use the service and more likely to use other services (other nodes) Circles vs. squares vs. hexagons for market area representation Circles cause geometric problem – create gaps or overlap Squares have too much distance from node to corner Hexagons minimize distance to corners, have no gap/overlap

Central Place Theory (Walter Christaller, 1930s) Size of Market Area Range – maximum distance most people are willing to travel (radius around central place or node) The range is not the farthest anyone will travel (just most, 2/3 to 3/4 of people) Everyday goods/services (low-order) – people willing to travel only shorter distances; services must be more numerous; (Examples: grocery, convenience store, fast food, gas station, etc.) Higher-order goods/services – people are willing to travel longer distances (Examples: fine dining, concerts, pro sports) Irregular shape of market area may be created by competition of similar services/businesses Range can also be modified based on time of travel rather than distance (quality of roads, traffic, city streets vs. interstates)

Central Place Theory (Walter Christaller, 1930s) Size of Market Area Threshold - # of people needed to support the service; minimum number of customers to generate sales to turn a profit Based on age, income, gender, product type, wealth, demand Convenience store, fast food, grocery – everyone Movie theaters – younger people, families Chiropractors – older people Thrift stores – lower-income Upscale department stores, fine dining – wealthy Amusement parks – families with children Night clubs – singles

Market Area Analysis Study completed by service providers & retailers to determine suitability of a location (if market is suitable, then determine best location within market area) Profitability of a Location Use surveys, census data, accounting data If competitors nearby, may need a larger area Example: 15 minute range $10,000 sales per week for profit $2 per week average customer Need 5,000 customers per week If competitors nearby, must adjust size of market area or shape of area (will need more than 5,000 people in area)

Market Area Analysis Optimal Location within a Market Once profitability is determined, find best location to minimize distance to be traveled for the most customers possible Linear Settlement Elongated community (like Miami, Atlantic City, etc.) A few, long major N-S or E-W streets & many short streets in perpendicular direction Best location is middle or median of series (½ to north, ½ to south) What is different # of customers on each block? Use gravity model for optimal location – directly related to population and inversely related to distance Greater # of people gives greater potential for customers Greater distance to travel, less potential for customers

Market Area Analysis Optimal Location within a Market Non-linear settlement More complex, but still use gravity model Identify possible site Identify where potential customers live within market range Measure distance from possible site to every potential customer Divide each potential by distance to potential site Sum all results from step 4 Select 2nd possible location & repeat steps 2-5 Compare results from step 5 for possible locations – highest sum/score has highest potential & is optimal site

Hierarchy of Services & Settlements Smaller settlements are limited to consumer services with small thresholds, ranges, & market areas Larger settlements have greater # and variety of services – varies by neighborhood within large settlements People usually travel shortest distance for services May travel farther for lower prices, unavailable services, unavailable/different items Nesting of Services & Settlements MDCs have many small settlements & fewer large settlements 4 market area levels (smallest to largest): Hamlet (fewer than 100 people) Village (100 – 1,000 people) Town (1,000 – 3,000 people) City (wide range of sizes) **Size definitions vary from country to country and are not exact** Regular pattern of distances between settlements

Hierarchy of Services & Settlements Rank-Size Distribution of Settlements Regular pattern of ranking settlements by population Rank-size rule – states that nth largest settlement is 1/n the population of the largest settlement in a country or province 1st – 1, 2nd – ½, 3rd – 1/3, 4th – ¼, 5th – 1/5, etc. Largest city is 1 million; 2nd = 500,000; 3rd = 333,333; 4th = 250,000; 5th = 200,000; etc. Generally plots as a straight line on a graph Pattern is found in U.S. and several other countries If it does not graph in a straight line or follow 1/n rule, it does not have rank-size (example: many European countries) Sometimes the pattern may not work for larger settlements but will still work for smaller settlements (often true in Europe)

Hierarchy of Services & Settlements Rank-Size Distribution of Settlements Often countries that do not follow the rank-size rule, follow the primate city rule Primate city – largest city in a country; over 2x the size of the next largest city; usually the center of power for gov’t, economy, culture, education, etc. for the country Ex: Denmark – Copenhagen (1 million) vs. Arhus (200,000) Ex: UK – London (8 million) vs. Birmingham (2 million) Many LDCs follow primate city rule, but also fail rank-size rule at smaller settlements Importance of Rank-Size (Example of Romania) Indicates regular hierarchy; society is sufficiently wealthy to provide goods/services throughout the country; proportionate wealth distribution Absence of rank-size may indicate not enough wealth in country for many to have adequate goods/services; disproportionate wealth distribution Romania – under communism WW2-1989; Ceaucescu (dictator) destroyed neighborhoods & rural settlements with gov’t planning; primate city of Bucharest (capital city); NOW, restrictions on Bucharest’s growth to encourage growth in other cities & rural settlements

Examples of Primate Cities Manila (Philippines) London (UK) Mexico City (Mexico) Paris (France) Seoul (South Korea) Athens (Greece) Tehran (Iran) Baghdad (Iraq) Vienna (Austria) Budapest (Hungary) Santiago (Chile) Bangkok (Thailand) Cairo (Egypt) Lima (Peru) Lisbon (Portugal) Examples of Countries with NO Primate City Germany Switzerland Japan Saudi Arabia U.S. Israel Vietnam Brazil Netherlands Pakistan China New Zealand Italy Poland Australia Russia (?) India Spain South Africa Turkey

Positives to economic development for countries with primate cities: Agglomeration advantages Large market to attract goods and services Can offer high-end goods and services because of large population (high threshold) Increased flow of information to high population Centralized transportation & communications network Global trade; attract foreign investment Negatives: Unequal distribution of investment; limited growth opportunity outside of primate city Unequal distribution of resources, wealth, power Centralized transportation network limits access in periphery Brain drain from periphery to primate city (core) Disaster to primate city would cause disproportionate impact to entire country’s economy Unsustainable urban growth around primate city (large slums, housing shortages, job shortages, environmental damage) creates significant economic burden on central government to provide services/raise income/levy taxes

Hierarchy of Services & Settlements Rank-size & primate cities can occur on a regional or provincial level Atlanta, GA; Winnipeg, Manitoba; Perth, Western Australia are all provincial primate cities Periodic Markets Set up on certain days/weeks/etc. in certain or different places in a town or city Common in LDCs & rural MDC settlements Generally near areas of sparse population and lower income that cannot support full-time retail Mobile vendors – drive from farm to market & to different markets Often sell food, handicrafts Frequency various by culture Muslim countries – once a week in 6 cities, nothing on Friday (day of rest/prayer) China – 3 cities on a 10-day cycle (based on lunar month 29.5 days) Korea – 2 cities on 15 day cycles (based on lunar month 29.5 days) Africa – between 3- and 7-day cycles

Key Issue #3: Why Do Business Services Locate in Large Settlements?
World Cities (also called global cities) Among the largest cities in population; centers of economic, cultural, & political power Business services cluster in large urban settlements, even in ancient times Ancient World Cities May have originated in Middle East/Fertile Crescent/Mesopotamia then diffused to China, Egypt, Indus River Valley (Pakistan/India) OR may have originated independently Earliest Urban Settlements Ur in Mesopotamia (in present-day Iraq), possibly began in 3000 BC – built by Sumerians 100 hectares/250 acres surrounded by a wall Central structure – ziggurat (temple, political functions) Surrounded by houses, businesses, many narrow & winding streets Early urban settlements were well-planned – streets & wall laid out first; palaces, temples, public buildings near center; cemeteries beyond walls Houses built around a central courtyards – extended families in separate houses around courtyard (courtyard for wine, weaving, garden, crypt, etc.)

World Cities Ancient World Cities Ancient Athens Eastern Mediterranean settlements began around 2500 BC – Knossos in Crete, Troy in Asia Minor (Turkey), Mycenae in Greece City-states – independent, autonomous (self-governing) cities & the surrounding countryside (defense, farming, animals, burial, water, etc.) Grew rapidly in 600s & 700s BC – new settlements built in gaps on existing trade routes between cities Athens – center of Western civilization; largest in ancient Greece; possibly 1st city in world to reach 100,000; development of philosophy, education, literature, drama, art, sculpture, democracy, etc. Ancient Rome Roman rule in Europe, North Africa, Southwest Asia Extended military, administration, public services, consumer/retail in conquered & new settlements Building of utilities, roads, aqueducts (for water), baths, recreation for legions, collecting taxes, & spreading “glory of Rome” Rome – at least 250,000, possibly 1 million Decline in urban settlements in Europe after fall of Rome; culture preserved in monasteries

World Cities Medieval World Cities Urban life returned to Europe as feudal lords built urban settlements – 1000s AD Residents required to serve in military temporarily for the lord; different from rural serfs who farmed lord’s land Freedom from serfdom led to expanding trade (merchants, guilds) New roads connected settlements by 1300s; Europe covered in small towns surrounding squares & markets, churches/cathedrals, & palaces Cities surrounded by walls; gunpowder/cannonballs could destroy walls Dense, compact cities; shops & houses nested into walls & large buildings; most old buildings destroyed now except churches From Roman Empire to Industrial Revolution – most of the largest cities were in Asia (Top 5 in no order= Baghdad, Constantinople/Istanbul, Kyoto (Japan), Chang’an/Xian, Hangzhou in China) In early 1800s – Beijing competed with London for largest in world; also very large were Isfahan in Iran, Cairo, Agra in India, Canton/Guangzhou in China, Osaka in Japan

World Cities Modern World Cities Emerged where high % of world’s business is transacted & political power concentrated Top of central place hierarchy for consumer services Usually centers of public services too Transportation & communication improvements were expected to decrease the need to cluster into cities – however, they have mostly reinforced the strength & importance of world cities in a global economy (exception in manufacturing which has decentralized to periphery) Business Services in Modern World Cities Corporations often based in world cities; financial services (bank/insurance/stock exchanges/etc.) Lawyers, accountants, advertising, marketing, fashion cluster in world cities Hubs for transportation (harbors, rail hubs, airport hubs, major highways

World Cities Modern World Cities Consumer services in Modern World Cities Retail services with larger market areas (large ranges and/or thresholds) – more retailers, luxury/high-end retail, specialized retail Larger % of wealthy people in world cities Leisure services cluster in world cities (opera, ballet, plays, sports, libraries, museums, theaters, night clubs, restaurants, etc.) Public Services in Modern World Cities Centers of national & international power Many world cities are national capitals (residences, courts, government offices, embassies, offices for unions/trade associations/professional organizations/foreign diplomats NYC – not a national capital or state capital; UN headquarters Brussels – capital of Belgium, HQ for NATO & EU

Hierarchy of Business Services 4 levels of cities that play a role in provision of business services in a global economy World cities (global cities) at top of global economic & political hierarchy Emerging cities are large cities (typically in LDCs) that are quickly gaining population and economic & political influence World Cities (2012 rankings) Alpha ++ : NYC, London Alpha + : Hong Kong, Paris, Singapore, Shanghai, Tokyo, Beijing, Sydney, Dubai Alpha: Chicago, Mumbai, Milan, Moscow, Sao Paulo, Frankfurt, Toronto, LA, Madrid, Mexico City, Amsterdam, Kuala Lumpur, Brussels Alpha - : Seoul, Johannesburg, Buenos Aires, Vienna, San Francisco, Istanbul, Jakarta, Zurich, Warsaw, Washington DC, Melbourne, New Delhi, Miami, Barcelona, Bangkok, Boston, Dublin, Taipei, Munich, Stockholm, Prague, Atlanta

Hierarchy of Business Services Command & Control Centers 2nd level of cities – may have HQ of corporations, banks, & concentration of other business services; important education, medical, & public institutions Regional (in U.S.) Beta: Dallas, Philadelphia, Houston, Minneapolis, Seattle, Detroit, San Diego Gamma: Baltimore, St. Louis, Phoenix, Charlotte, Tampa, Raleigh, San Jose, Cincinnati, Milwaukee, Columbus OH, Orlando, Portland, Kansas City Subregional (in U.S.) High-Sufficiency: Indianapolis, Richmond, Pittsburgh, Austin, Hartford, Salt Lake City Sufficiency: San Antonio, Nashville, Providence, Memphis, Jacksonville, Sacramento, Las Vegas, Birmingham, Greensboro NC, New Orleans, Tulsa, Des Moines, Madison, Rochester NY

Hierarchy of Business Services Specialized Producer-Service Centers Narrow & specialized variety of services – house management and research & development (R&D) related to specific industries (steel in Pittsburgh, motor vehicles in Detroit, semiconductors in San Jose) Some may be centers of education & government (Albany, NY and Lansing, MI) Dependent Centers Provide relatively unskilled jobs & depend on world cities, command & control centers, and specialized producer-service centers for economic health 4 subtypes in U.S. Resort, Retirement & Residential – Ft. Lauderdale, Albuquerque, Reno Manufacturing – Buffalo, Chattanooga, Erie NY, Rockford IL Industrial & Military– Huntsville, Newport News VA Mining & Industrial – Charleston WV, Duluth MN

Economic Base of Settlements Basic industries – export primarily to consumers OUTSIDE of settlement (important in settlement’s distinctive economic structure & identity) Non-basic industries – provide to consumers in the same community Economic base – defined by a community’s unique collection of basic industries Brings money into community from outside Stimulates provision of more non-basic services for the settlement; attracts new non-basic consumer services Attract new workers/families/population Multiplier effect - % increase in new jobs/wealth generated by a basic industry (Ex. A new steel mill adds steel jobs AND can attract other jobs for related industries (transportation, parts makers, etc.) and can attract non-basic jobs (more consumer services needed for new workers) Non-basic industries do NOT stimulate new basic industries An industry is considered basic if the % of that community’s workforce in the industry exceeds national average Cities can be classified by their type of basic activity (may be mining near coal/oil/minerals), steel, auto, textiles, food, paper, chemicals, banking, tourism, etc.)

Economic Base of Settlements Specialization of Cities in Different Services Basic/non-basic concept first applied to manufacturing Post-industrial economy/society dominates U.S. today – decline in manufacturing, growth in services, emphasis on technology/innovation/creativity; focus on high-skill & education Cleveland/Pittsburgh – basic industry once was steel; cities have deindustrialized; basic industries in those cities now health services & high-tech research Boston & San Jose – computing, data processing Austin, Orlando, Raleigh-Durham – high-tech industries Albuquerque, Colorado Springs, Huntsville, Knoxville, Norfolk (VA) – research & manufacturing to support military Washington DC – management, consulting, lobbyists Public service specialties – dispersed throughout U.S. (state capitals, near large universities, military bases) Consumer services – medical (Rochester, MN) & recreation (Reno, Atlantic City, Las Vegas) Business services – larger cities like LA, Chicago, NYC, San Francisco Business services growing in S & W; but growing faster in N & E (deindustrialization of Rust Belt; shift towards service sector; example – Baltimore once basic in steel & ports/shipping, now basic in medical/biotechnology research

Economic Base of Settlements Business Services in LDCs Informal sector – often very strong in LDCs; includes any economic activity that is untaxed & not monitored by the government (black-market, unregulated street vendors/window-washers/shoe-shiners/etc.); characterized by easy entry; perhaps as high as 41% of workforce in LDCs; not included in GDP for a country 2 main types of business services in LDCs (offshore financial & “back offices”) Offshore Financial Provided by small countries (islands & continental microstates) to exploit niches in global capital 2 important function: Tax advantages – low or nonexistent taxes on income/profit/capital gains; give tax-free status regardless of owner’s nationality Privacy – laws to protect identity & amount of money in bank Can be used for tax evasion – U.S. loses $70 billion per year

Economic Base of Settlements Business Services in LDCs Offshore Financial Privacy – lawyers & doctors can protect some of their assets offshore from malpractice suits; wealthy individuals protect against divorce settlements; bankruptcy protection; short statute of limitation protect against long-term investigations Allow for tax evasion & other illegal schemes Cayman Islands (British Crown Dependency in Caribbean) – 600 banks with $800 billion in assets (double all deposits in NYC banks); crime in Caymans to discuss confidential business Caribbean – Anguilla, Montserrat, British Virgin Is., Aruba, Netherlands Antilles, U.S. Virgin Is. English Channel – Guernsey, Sark, Alderney, Isle of Man, Jersey Gibraltar (UK) on Iberian Peninsula Islands in Pacific – Cook Is. & Niue (both NZ) Seychelles & Maldives in Indian Ocean Andorra, Liechtenstein, Monaco, Belize, Panama, Bahrain, Liberia, Switzerland

Economic Base of Settlements Business Services in LDCs “Back Office” (Business-Process Outsourcing or BPO) Includes processing insurance claims, payroll management, transcription & routine clerical activities, call centers for credit cards/shipping/claims/tech help/repair Traditionally in same building as management (or nearby) Rising rents forced back office jobs out of CBD (Central Business District) – usually located in suburban area Improved technology/communication has eliminated need for spatial proximity – moved to rural areas or LDCs Attracted to LDCs for low wages – only a few thousand dollars per year income (higher than many in country but lower than MDCs); considered high status work in LDCs (educated, motivated) Necessary to speak English – work with U.S./UK/etc. customers; lingua franca for other countries Few LDCs have sufficient fluent English speakers – cluster in former British or U.S. colonies (India, Malaysia, Philippines); work nights

Impact of Communications Improvements on Traditional Economic Arrangements Internet, satellite, , cell phones, etc. Less face-to-face business, increased distance allowed between various functions of a business Less brick-and-mortar, more e-commerce Teleconferencing, videoconferencing, express package delivery (FedEx, UPS), etc. Gateway Cities (on a global scale) Cities that have an airport or seaport that serves as the major point of entry to a country Handles large number of international arrivals and departures U.S. examples: NYC, Miami, Los Angeles, San Francisco, etc.

Economic Base of Settlements Distribution of Talent Talent is not evenly distributed Talent attracted to cities with most job, financial, and entertainment opportunities & incentives Richard Florida – cultural enticement is most important to attract talent Diversity – cultural facilities per capita, % of homosexual, coolness index (% of pop. in 20s, # of art galleries per capita, # of nightlife places per capita) Talent - % with college degree, % scientists or engineers, % professionals or technicians Correlation of talent with diversity Attracting talent is important for economic innovation, new businesses, & fresh ideas

Key Issue #4: Why Do Services Cluster Downtown?
Central Business District (CBD) – downtown area, usually center of the city; one of the oldest parts (site of original settlement); compact/dense; contains large % of shops/offices/public buildings Attracts consumer & business services because of high accessibility – easiest to reach, focal point of regional transportation network Infrastructure – basic structures and organization needed to support society; Ex. roads/rail, utilities/communications; centered on CBD Consumer (Retail) Services in CBD High Threshold Large department stores (typically cluster near one another) High rent (land values) in CBD because of high-accessibility Recently, many high threshold shops have closed downtown branches (moved to suburban malls) Some retail stores remain to serve downtown offices workers, tourists, inner-city residents

Consumer (Retail) Services in CBD High Range Very specialized, infrequently shopped at; customers scattered over a wide area Examples: fine jewelry & furs Many have moved to suburban malls; still thrive in CBD if paired with leisure/recreation/open space Near new/revived urban malls – Faneuil Hall in Boston, Harbor Place in Baltimore, Gallery at Market East in Philadelphia, Atlantic Station in Atlanta, former Peabody Place in Memphis Some cities have preserved old markets – grocery for inner city, exotic/luxury/high quality goods Retail Services Serving Downtown Workers Workers eat/shop during lunch or immediately before/after work Businesses with office supplies, computers, clothing, shoe repair, dry cleaning, photocopying, eating, etc. Outside of N. America, more supermarkets/bakeries/butchers in CBD (sometimes no or limited hours on weekends or evenings) Expanding number of shops for office workers in CBD Revitalization of CBD & older neighborhoods – some cities have banned motor vehicles on certain streets (pedestrian only); widespread in NW Europe; Main St. mall in Memphis

Business Services Offices cluster in CBD for accessibility Chain of interdependency – temporary agencies near law offices, law offices near courts, etc. Central location draws workers from a variety of neighborhoods High Land Costs in CBD (Bid-rent theory) Accessibility creates high demand & competition for limited sites (small land area, compact) High demand = high cost; Example: Tokyo CBD over $125,000 per square meter ($500,000 per acre) Shortage of buildable land in many CBDs (limited supply = higher demand); low supply combined with high demand lead to very high costs Bid-rent theory describes how land values increase closer to CBD (and decrease with greater distance from CBD) Intensive Land Use in CBD High costs lead to more intensive use of land; build vertical cities (more space used above & below ground) “underground city: - parking, loading decks, utilities, subways, drainage Underground pedestrian passages & shops (Minneapolis, Toronto, Montreal, Atlanta) to segregate from cars & shield from winter weather

High Land Costs in CBD (Bid-rent theory) Skyscrapers High demand & cost made high-rises economically feasible Create an iconic, unique skyline (cultural landscape) from arrangement, height, quantity, architectural styles 1st built in 1880s Chicago (elevator, steel-frame, built for 1893 World’s Fair) Skyscrapers can block light, air, create wind tunnels – have been improved by artificial lighting, ventilation, central heating, AC Most N. American & European cities have enacted zoning ordinances to control height & location of skyscrapers Too many built near one another leads to traffic congestion in narrow streets Vertical geography – different activities at different floors Shops near street level (walk-in customers, window shopping, higher rents) Offices above shops Hotels & residential at higher levels – reduced noise, good views, lower rents No skyscrapers in Washington DC CBD – no building can be taller than Capitol Dome (more horizontal CBD, historical, emphasis on monuments)

Activities Excluded from CBD High rents & land shortage discourage manufacturing & residents Decline in Manufacturing in CBD Warehouses, factories, slaughterhouses replaced by offices, skyscrapers, open space, museums, apartments/condos Modern industry requires 1-story, large buildings – more available land, lower rent costs Improved suburban transportation (interstate highways) for industrial accessibility Port cities – waterfronts being converted from industry/warehouse to commercial/recreation Examples: Boston, Toronto, Baltimore, San Francisco, Jacksonville, London, Barcelona Lack of Residents in CBDs Many people used to live downtown – wealthy in mansions, penthouses & poor crowded in tenement apartments Residences mostly abandoned downtown in 20th century Push factors: high rents, business & consumer services willing to pay higher rents Pull factors: suburbs, larger homes, yards, modern schools, away from crime/congestion/dirt/poverty, personal garages

Activities Excluded from CBD Lack of Residents in CBDs Re-growth of downtowns in U.S. (attracting residents) since 1990 New apartments, converted warehouses & office buildings to residential Attracts young professionals, singles, empty-nesters Nightlife, restaurants, parks, entertainment, museums No concerns over schools if you don’t have kids More convenient to work European CBDs Less dominated by commercial than U.S. Legacy of low-rise buildings (under 10 stories) & narrow streets from medieval times – protected against development (sometimes restored); filled with churches, palaces, parks/plazas/gardens, public buildings, libraries, museums Preserve historic core by limited high rises & # of cars (Paris, Rome) Restored & reconstructed historical buildings/cities (Warsaw after WW2) Renovation – expensive alternative to building new buildings for shops & offices; not enough space to meet demand (must renovate); higher rents in Europe than U.S.

Suburbanization of Business Business services & manufacturing moving to suburbs (periphery) because of lower land costs Consumer services moving to suburbs because of market/customer proximity Suburbanization of Retailing Traditionally shopped for daily needs at small neighborhood shops & in CBD for other products Retail in U.S. – 1950s (in CBD), 1970s (in suburban enclosed shopping malls), 1990s (“big box” superstores & open shopping centers) CBD too far from many customers; growth of suburbs after WW2 Rarely build small corner shops in newer suburbs – low density residential areas discourage walking (car-centric) & have restrictive zoning allowances (may only allow residential) Concentrate retailing in suburban shopping malls Supermarkets Shopping centers/strip malls Large malls with department stores (used to be in CBD)

Suburbanization of Business Suburbanization of Retailing Large parking lots in suburbs with large buildings and wide roads (lower land costs, more wasted space, more sprawl) Large malls – typically enclosed (growth in open-air malls) with over 100 shops, 1 million sq. ft., 100 acres of land Very large parking lots Anchor stores (large department stores) Developer builds, lease to retailers Centers of activities – retirees walk/sit, shopping, concerts, exhibits, teenagers meet friends Suburbanization of Factories & offices Factories & warehouses moved to suburbs for low land costs & better truck access (highways, interstates, less congestion) Offices that don’t require face-to-face moving to suburbs No charge for parking, lower rents Executives live closer to work; less traffic BUT fewer amenities/energy of CBD Hardships for lower-income workers (limited public transportation, too far to walk) Growth of “edge cities” – office parks/skyscrapers in suburbs

Unit 7: Cities and Urban Land Use

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Unit 7: Cities and Urban Land Use

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Presentation on theme: "Unit 7: Cities and Urban Land Use"— Presentation transcript:

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