P1 G LO1b Flashcards
features and functions of CBD
skyscrapers – banks, finance, insurance companies; at heart of commercial zone
attracts FDI
economic centre of city – banking & finance services
3 factors influencing functional zones
- Physical: topography and climate
- Human: ethnic mix and cultural history
- Economic motive !!! (overriding factor) – bid rent of land
define bid rent theory
How value of land varies for different purposes, depending on its accessibility and distance from CBD
why do businesses and retail want CBD area (bid rent theory)
- high accessibility to markets, workers, other businesses
- central: highest population traffic – sell product
- highest purchasing power – earns max profit to cover
- little ground space + high turnovers = outbid others
bid rent theory: functional zones starting closest to CBD
- businesses, retail
- manufacturing
- residential
why residential want to be close to CBD (bid rent)
- Housing needs to be affordable for target audience
- accessible to jobs, amenities – save on transport costs
- less purchasing power than retail sector
why public institutions want to be close to CBD
accessible to clients
why industries/manufacturing further from CBD
- Labour intensive industry req more space for expansion
- bids for less valuable land ; industries esp wholesale light manufacturing on outskirts
- Heavy industries – polluting, thus further
examples of industries requiring central location 5
- Those req skilled labour eg medical instruments
- Those needing access to CBD
- Those needing whole urban market for distribution eg newspapers
- Port cities – excellent access to international markets
- Major centres of innovation, ideas and fashion
6 assumptions of bid rent theory
- In a free market, HIGHEST BIDDER will obtain use of land (perfect competition)
- City is located on flat uniform plane
- Transport is ubiquitous and transport cost incr LINEARLY with distance
- All jobs conc in CBD
- Highest bidder can obtain MAX PROFIT thus can pay highest rent – everyone is a rational ‘economic man’ – buyer behaviour is geared towards reduction of cost
- COMPETITION is keenest in the city centre – it provides the most accessible location bc land is most scarce
highest bidder
flat plane
transport linear
jobs
max profit
comp keenest
what is the most expensive site in the CBD called
peak land value intersection
- highest rated, busiest, most accessible part of CBD
what are secondary land value peaks
rent higher along roads leading OUT of the city and along OUTER RING roads – more accessible, higher value → where these 2 intersect
10 characteristics of the CBD
- Multi-storey development
- Concentration of retailing
- Public transport conc in CBD
- Offices conc in CBD
- Vertical zoning
- Functional segregation occurs (diff land use diff CBD part)
- little residential
- Highest pedestrian flow
- Greatest traffic restrictions (Pedestrianisation)
- CBD changes over time (moves)
movement of CBD
Assimilation zone (direction in which CBD is moving)
Discard zone (direction from which CBD is moving away)
3 locations where goods are found (retailll) + examples
High-order goods
– in high street shops, dept stores, chain stores, specialist shops, malls [eg. downtown LA, FIGat7th]
Low-order goods
– in neighbourhood stores, shopping parades (shop clusters) [K-town shopping parade, LA]
Out-of-town
– superstores, retail parks [Costco, LA]
