Spatial Organization of Economic Functions
Bid Rent Model
The urban spatial pattern is shaped by the changing land value depending on its purpose and distance from the center.
- Land Value Gradient: Land values and rents generally decrease as distance from the CBD increases. However, there are secondary peaks at the intersections of main roads and public transport hubs.
- Economic Competition: Different commercial land users (retailing, office, etc.) compete for central locations.
- Urban Structure: The model helps explain the distribution and intensity of land use within a city.
Retail and Commercial Zones
Central Business Districts (CBDs)
- The CBD is the heart of a city's economic activity.
- It's where you find high-order goods like luxury items and specialized services.
Luxury and high-order goods' brands like Louis Vuitton and Apple often choose prime locations in CBDs to maximize visibility and sales.
Why Are CBDs So Important?
- Accessibility: CBDs are well-connected by public transport, making them easy to reach.
- High Land Values: Land here is expensive due to limited availability and high demand.
- Diverse Services: CBDs offer a mix of retail, commercial, and entertainment options.
Think of Times Square in New York City or Shibuya in Tokyo, these areas are iconic CBDs known for their vibrant economic activity.
Out-of-Town Shopping Centers
- In recent years, many cities have developed out-of-town shopping centers.
- These are large retail complexes located on the outskirts of urban areas.
Why Are They Popular?
- Space for Expansion: Unlike crowded CBDs, these areas offer ample space for large stores and parking.
- Lower Land Costs: Land is cheaper, allowing for larger developments.
