1. UNIT 7 LESSON 4

2. LEARNING OBJECTIVE  Explain property values in relationship to the CBD.

3. CBD OR CENTRAL BUSINESS DISTRICT: KEY AREA OF CITY MODEL  Central Business District: “In a city, the point with the greatest access to offices, banks, stores, and other activities. Most distinguishing feature and functions as a central marketplace, a major transportation node, and an administrative center, contains high-level services, and contains heavy pedestrian traffic” (Malinowski, 2014).  CBD: Sometimes also known as downtown. Contains less than 1% of the urban land area. Compact area (Rubeinstein, 2014).

4. CBD  We’re primarily talking about the CBD PRIOR to the 1970’s.  Make sure when you discuss the CBD you are talking about time frames for some aspects. Pre-1970’s, 1970’s to 2000’s, and then present day  Key feature of CBD is transportation  Transportation is centralized in this particular area  Clustering of services may result in transportation being directed to that area  However, transportation draws in more businesses  Transportation type will influence how the city has been laid out

5. CBD HAS THREE MAIN LAND USE PURPOSES  Public Services  Examples: city hall, courts, county and state agencies, and libraries..  Centrally located for ease of accessibility to all residents  Sports centers and conventions centers are often downtown to stimulate commerce in the CBD.  Business Services  Examples: advertising agencies, banks, financial institutions, and law firms.  Proximity to other service providers for businesses promotes collaboration and face-to-face meetings.

6. CBD SERVICES CONTINUED…  Consumer Services  Historically, three types of retail services clustered in a CBD.  Retailers with a high threshold  Retailers with a high range  Retailers that served people who worked in the CBD  Changing shopping habits and a shift of the more affluent to the suburbs have reduced the importance of retail services in the CBD.

7. LAND VALUES  Land is highly desired in the CBD  Good transportation  Centralized  Services that support/work with/in government desire area  Means that people who live in different areas can come to a central location  Executives live in one neighborhood, junior executives in another area, custodial and support staff in others. Are able to access CBD.  CBD has a limited amount of space, so it drives the values up.

8. FIG. 11.13 Bid-Rent Value: Located in Getis, seems scary, but it’s actually not. Remember Von Thunen, same principles, land is more valuable towards the center (CBD) The cost of land influences who uses it. Businesses typically have more money than individuals

9. Transportation routes can also increase the value of land. Figure 14C.1 Land Values in the City

10. Copyright © The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 14-10 Figure 14C.2 [insert figure 14C.2 here] Urban Functions & Land Values

11. Competition for Land in the CBD – High demand for the limited space in the CBD has encouraged vertical development. Underground CBD – Inadequate space exists above ground for the needed dense network of telephone, electric, and broadband cables, thus they are placed underground and out of sight. – Underground passages can segregate pedestrians from motor vehicles and shield them from harsh winter weather. Skyscrapers – Demand for space in CBDs has made high-rise structures economically feasible.

12. LAND MODELS  You’ve seen the models; I’m not going to spend much time on them in class.  Understanding property values can give insight into the reasons why they are divided the way that they are.  Models help understand where people live & why  Some models are about social interactions (Sector Model)  Some models are economic (Sector Model)  Some models are look at multiple centers, change CBD (Multiple Nuclei Model)

13. DIFFERENT COUNTRIES MAY HAVE DIFFERENT SITUATIONS  European Cities still have a very strong CBD, whereas in the U.S. they have declined post 1970 (about to talk about)  European cities also do not tend to build “up”  European cities do not sprawl as much as U.S.  Developing countries may have a layout similar to European  However, large clusters of poor in squatter settlements at edges

14. CBD’S POST 1970’S  Pruitt-Igoe actually mentions that people start leaving the city Post World War II  Greater access to cars  Federal government gives home loans (you can buy a home now and pay it off over time)  People want to live outside of the city for greater access to land  People want to live outside of the city to get away from “those people”  quote from Pruitt-Igoe  Begins the process of an outward migration from the CBD and surrounding residential zones in the city

15. SUBURBS  Rise of suburbs takes tax base with it (Pruitt-Igoe)  Rise of suburbs begins to move services/business outside of the CBD  Nodes of business emerge, shopping malls, or edge cities  This can cause a disconnect between low-skilled labor being able to access jobs  Lack transportation to get to the areas away from CBD, lower-income housing  Reinforces segregation  Segregated by social class (similar prices houses near one another)  Land uses are kept apart by zoning