The Benefit of CBD -Multi -Changes

1. CBD Users
One way to begin to understand the role of the CBD is to consider who uses it 1. Workers Still primary location for many major employers, office buildings, govt offices 2. Residents Usually now at extremes of income scale 3. Shoppers Many CBDs much smaller role than formerly 4. Visitors Renaissance in many CBDs in the hotel industry: CBD as entertainment and cultural center These groups found in CBD in different proportions at different times of the day and days of the week

4 Major Groups:

1. CBD Users
Total
Number of People in CBD

Workers and Shoppers

Residents and Visitors

6:00 AM

Noon Time of Day

6:00 PM

2. Advantages of CBD Location for Office Employers

Whether or not a downtown stays healthy has a lot to do these days with job decentralization Most CBDs still major centers of large employers

Reasons for CBD location: 1. 2. 3. 4. 5. Face-to-face contact Accessibility Broadly diversified labor pool Prestige Linkages between employers

3. CBD Linkage Types

4 Types of CBD Linkages (Rannells): 1. Competitive 2. Complementary PA > 3PB 3. Ancillary Synergistic 4. Commensal

PA

PB

Effects!

Consumer

1. Competitive Linkages: External Market

CBD
Dept Store Dept Store

No Direct Interaction among locational units

Proximity to competitors helps each

Dept Store

Comparison shopping facilitated

3. CBD Linkage Types

1. 2. Competitive Complementary CBD
Advertising Agency
Daily Metro Newspaper

NOT: Complimentary!

Direct linkages and interactions among locational units

Related functions cluster together

Commercial Bank

External Market (Residential Areas)

Art Supply Store

3. CBD Linkage Types

1. 2. 3. Competitive Complementary Ancillary CBD
Lu Anns Coffee Shop Candy Store Flower Shop From word for maid servant these are auxiliary or helping linkages

Clusters of unlike functions serve single pool of clients (Downtown employees) Internal CBD Market One LARGE locational unit and a number of smaller ancillary units

XYZ Corp. Office Tower

Newsstand

3. CBD Linkage Types

1. 2. 3. 4. Competitive Complementary Ancillary Commensal From word for eating
together at the same table

No Direct Interaction among locational units All serve separate external markets
But they have common needs Alternate type of these: sharing of common suppliers

Bill Collection Agency

13th Floor XYZ Office Tower

Independent Documentary Film Studio

Website Design Firm

4. Intra-CBD Sustainable Patterns: The Green Concept

Frame
Light Manufacturing PARKING

Principal Core Land Uses:

Office Towers Government Functions Major Retail Area Financial District

Wholesaling PARKING

Core
Warehousing

Entertainment: Theaters, Arenas, Stadiums Hotels Convention Centers Restaurants, Bars, Clubs

Multifamily housing
Medical Center

PARKING

5. CBD Change, Decline and Revitalization Dynamics Concepts

Consider historical demise of retailing and the change in employment shares for the CBD For instance, between 1963 and 1972: CBD retail sales: 15% 7.4% CBD employment: 17.3% 14.6% These vary a lot by city! Retail sales: Atlanta 19.3% 7.4% Denver 11.3% 4.4% Some cities CBDs are faring better Portlands is still single largest retail center Denvers Downtown has been revitalized dramatically Even during the worst time period (1963-1972) in Salt Lake Citys CBD sales grew by 8.8% while its share went down almost as much as national average: 15.6% 8.7% Lets look at a numerical example to illustrate absolute versus relative decline

5. CBD Change, Decline and Revitalization Dynamics Concepts

Year 1990 2000 GLA (sq ft) in Metro Area 15 million 10 million GLA (sq ft) in CBD 6 million 3 million

Absolute Decline: Both Metro Area and CBD Lost retailing Which experienced worse decline? Metro Area: -5 million change on base of 15 million = 33% decline CBD: -3 million change on base of 6 million = 50% decline

CBD experienced both an ABSOLUTE and a RELATIVE decline!

5. CBD Change, Decline and Revitalization Dynamics Concepts

Year GLA (sq ft) in Metro Area GLA (sq ft) in CBD CBD Share

1990 2000

20 million 30 million

5 million 6 million

25% 20%

Absolute Increase: Both Metro Area and CBD Gained retailing Which was bigger gain? Metro Area: +10 million change on base of 20 million = 50% increase

CBD: +1 million change on base of 5 million = 20% increase

So CBD experienced an ABSOLUTE INCREASE but a RELATIVE decline! Alternative way to think about this is in terms of CBD share

6. CBD Revitalization Strategies

What can be done to halt declines? Why should we care? Retailing: Battle largely lost, but Innovations:

Shopping mall strategies:

Eaton Centre in Toronto

Eatons

3 Stories of Shops

Simpsons

5 Levels of Parking Garage on site with access on Yonge Street Main Street of old CBD retailing district

6. CBD Revitalization Strategies

What can be done to halt declines? Why should we care? Retailing: Battle largely lost, but Innovations: Shopping mall strategies: Eaton Centre in Toronto Galleria in Philadelphia Enhance Pedestrian Environment Pedestrian malls Transit ways Skywalks (Cincinnati, Minneapolis) Underground Connections (Montreal) Entertainment Function: Reinvent the CBD as the Metropolitan Areas Playground! Housing and hotels

The Main Event: Retain Employment Base and Share of Metro White-Collar Employment