Central business district

A central business district (CBD) is the commercial and often geographic heart of a city. In the United States, this part of a city is commonly referred to as downtown or city center. City centre is commonly used in Australia, Canada, Ireland and the United Kingdom. It may also be called a central activities district.

The term CBD or Central Business District refers to the central district of a city, usually typified by a concentration of retail and office buildings. The term city place is similar to CBD in that both serve the same purpose for the city, and both are marked by a higher-than-usual urban density as well as often having the tallest buildings in a city.

United Kingdom and the Commonwealth
The alternative term city centre is used in United Kingdom and Ireland. In British-influenced countries, such as the Commonwealth realms, former British territories (Hong Kong most noticeably, also use many of the same terms, but also have many characteristics of British cities. In the UK, Ireland and South Africa, the term is often just shortened to "city", as in "going to the city"; it is often also referred to as "town" ("going (in)to town", "going up town", or "going down town"). One exception is in London where "the City" specifically refers to the City of London financial district (one of two CBD), rather than to any other part of London.

United States




In the United States, central business districts are often referred to as "downtown" (even if there is no "uptown"). In most cities the downtown area will be home to the financial district, but usually contains entertainment and retail of some kind as well. The downtown areas of many cities, such as Chicago, New Orleans and Houston, are also home to large sports and convention venues. Historic sections of a central business district may be referred to as "old town", while decaying parts of the centre city are commonly referred to as the "inner city". The term inner city is sometimes not used literally but rather evocatively, applying a negative connotation and referring paradoxically to peripheral areas blighted during a mass exodus of middle class residents.

Some cities in the United States, such as Minneapolis, and Dallas, have mixed use districts known as "uptown" in addition to the primary downtown core areas. In some cities, such as Cincinnati, Ohio, Charlotte, North Carolina, Chicago, Illinois and Oklahoma City, "uptown" is instead the historic name for a separate business centre or neighbourhood. Philadelphia and Wilmington, Delaware use the term center city instead of downtown for their central business districts. In other cities, like Los Angeles and Indianapolis, the city core is simply known as "downtown". In New Orleans, the phrase central business district is used; and while downtown is sometimes used synonymously, traditionally it referred to parts of the city downriver from Canal Street, which would not include the CBD. One exception is the population in Seattle, local residents refer to the center of the city as the CBD. In Miami, "Downtown Miami" refers to the neighborhoods (such as Brickell and Omni) within the downtown area, not just the central business district. Downtown Jacksonville also follows the Miami model with multiple sub-districts (such as LaVilla, Brooklyn and Southbank) within the greater downtown area, the Northbank district serving as the true CBD.

By broad definition, New York City's CBD comprises the whole southern half or third of Manhattan island. Narrow definitions include only a square mile or two (3–5 km²) of Midtown as central, with the lowest tenth of the island, including the Financial District, being a secondary business district rather than the central one. Similar narrow and broad definitions are applied to the Chicago's downtown high rise districts.



Land value variations in a CBD
Land users, whether they be retail; office; or residential, all compete for the most accessible land within the CBD. The amount they are willing to pay is called bid rent. This can generally be shown in a ‘bid rent curve’. Based upon the reasoning that the more accessible the land, generally in the centre, is the more expensive land.

This is called the bid rent theory.

Commerce (especially large department stores/chain stores) is willing to pay the greatest rent to be located in the inner core. The inner core is very valuable for them because it is traditionally the most accessible location for a large population. This large population is essential for department stores, which require a considerable turnover. As a result, they are willing and able to pay a very high land rent value. They maximise the potential of their site by building many stories.

As one moves from the inner core, the amount commerce is willing to pay declines rapidly. Industry, however, is willing to pay to be in the outer core. There is more land available for their factories, but they still have many of the benefits of the inner core, such as a market place and good communications.

As one moves farther out, so the land is less attractive to industry due to the reducing communication links and a decreasing market place. Because the householder does not rely heavily on these and can now afford the reduced costs (when compared with the inner and outer core) is able to purchase land.

The farther one goes from the inner core and outer core, the cheaper the land. That is why inner city areas are very densely populated (terraces, flats and highrises), whilst the suburbs and rural areas are sparsely populated (semi and detached houses with gardens).

Secondary Central business district
This is a small business district developing close to the central business district. Examples include the Canary Wharf financial district in London, which functions as the secondary financial heart of the city, Akasaka, Ikebukuro, Roppongi, Shinjuku, Shibuya, and Shiodome in Tokyo, Minato, Suminoe and Osaka Business Park in Osaka City, Rinku Town in Osaka Prefecture, Plaza district, New York and Bandra CBD, Mumbai. Another example is North York Centre and Scarborough City Centre in Toronto.