CBD

CBD

1. convenient location

   • good transport ntwork

2. a symbol of status

   • prestigious to have office there
   • many large companies are found there
     • easier to do business with each other

3. high land rent

   • only commercial activities can afford
     • reason: can earn more profit per unit area
     • e.g. bank headquarters, five stars hotel, famous brand-name retail shops
       • high order goods
         • high quality
         • expensive
   • industrial land use cannot be found
     • reason: cannot afford high land rent
     • reason: occupies a larger space
   • reasons for high land rent
     • many firms compete to locate there
     • limited land in CBD

4. buildings are tall and nicely designed