The location of economic activity in urban areas

1. The location of economic activity in urban areas IB OBJECTIVES: Factors affecting the pattern of urban economic activities (retail, commercial, industrial), including physical factors, land values, proximity to a central business district (CBD) and planning The causes of urban deindustrialization and its economic, social and demographic consequences

2. Learning intentions What: • Developing an understanding of the factors that influence the location of economic activity. How: • Discussion of prior knowledge/case studies • Drawing on a range of sources to gather specific information e.g. websites and news articles. • Writing an IB essay response. Why: • To understand the patterns of work in the cities • To develop IB essay writing skills (using the IB criteria).

3. Example exam essay questions: Examine the reasons for the location of economic activities (such as retailing, service and/or manufacturing industries) within an urban area. [10] 2017: Examine the reasons why economic activities change location in urban areas, including the use of brownfield sites.

4. What factors affect the location of economic activity (manufacturing, services and retailing) in cities?

5. Possible factors… • Population movements (e.g. decentralisation caused by suburbanisation) • Land availability e.g. brownfield and greenfield sites • Costs e.g. land value, competition from online retailers • Secondary peaks • Transport links • Regeneration projects • Land-use zoning • Environmental considerations • Proximity to labour • Proximity to markets • Economic agglomeration • Urban policies e.g. multi-use development

6. Commercial activity:The CBD

7. What is the CBD? CBD = Central Business District. “The CBD is the commercial and economic core of a city. It is the heart of a city, the area most accessible to public transport, and the location with the highest land-values.” The main features of the CBD:- Major retailing outlets- Offices- Tallest buildings due to high rent per square foot of land- Greatest concentration of pedestrians- Highest concentration of traffic- Highest land values- Most dynamic area

8. What are the characteristics of the CBD?

9. More CBD Characteristics Old Core - often narrow streets / historical core (e.g. The Backs in Cambridge/The Lanes in Brighton) - Very Accessible - due to the convergence of major rail and road routes (often find public transport meets here - e.g. railway stations / bus stations) - Traffic Restrictions are often in place to deal with the large numbers of traffic and ensure safety for the high numbers of pedestrians. - Often has a central Market square area - Very High Land Values - due to lack of space and competition for land - Little/ No Residential Land Use - due to high land-values there is usually no residential land-use apart from the possibility of some flats above shops - Multistorey buildings - due to high land values resulting in building up rather than out - Shops Offices and specialist buildings e.g. Banks, buildings societies etc. (need to be accessible and can afford the high land values) - Mainly National Chain stores (have high threshold population and can afford the high land-values associated with the CBD - e.g. M&S; WHS; Next etc) - High numbers of pedestrians- 2 daily rush hours (am and pm) - Many now have undercover shopping centres - Presence of public buildings / government buildings (e.g. Town Hall etc.) - museums / castles / historical buildings (e.g. museums / University buildings) - Entertainment - restaurants, clubs etc.

10. The bid rent theory This bid-rent theory explains one pattern of urban land-use that is also identified by Burgess' concentric ring model. Bid rent theory is a geographical theory that refers to how the price and demand on land changes as the distance towards the CBD (Central Business District) increases. The different land users all compete with one and other for the more accessible land. The amount that they are willing to pay is called Bid Rent. As a direct result of this, a pattern of concentric rings of land use develops. The diagram shows what various land-users are prepared and able to pay for good access to the CBD

11. The Core-Frame Model: a land-use model for the CBD The CBD is the economic powerhouse of the city. It located at the central point of the city; with the highest land values and the best public access through both public and private transport networks. As a result, the CBD is the most dynamic (changeable) of the zones of the urban area. The Core-Frame Model describes the changes over time and space in the CBD.

12. Core-frame model

13. Core-frame model Core-frame model- a graphic representation of the CBD split into three main zones of the core (centre), frame (edge) and area between (outer core).  The major parts are:Inner Core - the location rarely changes, because this area contains the best transport links. In this area, the highest order shops and highest profit office activities are found. PLVI (Peak Land Value Intersection) - The PLVI is the “highest rated, busiest, most accessible part of the city.” The area with the highest land value.Outer Core - these are similar activities to the Inner Core, but require more space e.g. cinemas, or are have lower profit levels e.g. non commercial office activities such as local government.Frame - this is the edge of the CBD. It includes the major transport terminals, and activities that directly support the CBD.Zone of Assimilation - an area that is relatively fluid and can move. This corresponds closely to the gentrification argument - an area of low quality becomes fashionable, resulting in an increase of income which can then extend the CBD in that direction.Zone of Discard - an area becomes run down, often due to a major employer closing down and/or a lack of investment in the urban infrastructure.

14. Distance Decay principal PLVI – Peak land value intersection

15. Distance decay • The CBD of a city will be the location of the PLVI. • This means is the highest rated, busiest and most accessible part of the city – meaning land prices are also the highest. • Secondary peaks also exist in urban areas. These are areas that are also very accessible and so highly rated e.g. Houston – the Medical Center, Energy Corridor, Galleria District are all secondary peaks. How would we know where the PLVI is? Where do you think it is in Houston?

16. Decline in the CBD

17. Energy corridor Houston – an economic agglomeration Secondary Peaks, Houston, TX Factors resulting in the location of commercial activity outside of the CBD: • Suburbanisation and urban sprawl • Land availability • Improved transport links e.g. park and ride/freeways • Urban planning policy e.g. mixed use developments • The benefits of economic agglomeration • Agglomerations of economic activity (groupings of the same type of business in one location e.g. the Energy Corridor). • Offices no longer need to be in CBD due to proximity to improved transport links and close proximity to skilled workers in high-class suburbs e.g. Lakes on Eldridge. • Also increasing frequency of mixed developments e.g. Memorial City, City Centre, Town and Country, (suburbs), Galleria (inner suburbs) – includes residential, retail and office space in one location. • Article = pros and cons of mixed use developments: https://efficientgov.com/blog/2015/06/24/pros-cons-mixed-use-developments/ City Centre Houston – a mixed use development

18. Retail activity

20. 1960s/70s (UK) • The diagram shows the shopping hierarchy for Britain in the 1960s/70s. At the bottom are corner shops. These sell low order goods (e.g. pint of milk). They are greater in number than any other shopping area. • Above the corner shops are suburban parades and secondary centres. These sell middle order goods. This is usually a mixture of convenience and specialist goods. There are usually several of these areas within a large settlement. • At the top is the CBD (central business district - town/city centre). The CBD contains luxury and specialist shops which sell comparison goods (goods which you will compare the prices of - due to their expense!). These are also known as high order goods.

21. Why has it changed?

22. Modern shopping hierarchy • The CBD is no longer at the top of the shopping hierarchy; it has been superseded by regional shopping centres(e.g. Meadowhall, The Metro Centre, The Trafford Centre and Merryhill). • Due to increased mobility (the result of increased car ownership) people can travel further to shops, visit shops with a wider range and volume of stock and buy in bulk. • In some areas CBDs have declined due to competition with regional shopping centres. Newcastle is an example of this. The construction of the The Metro Centre resulted in decline in the CBD e.g. because many stores moved to the shopping centre. Newcastle’s CBD has since been revitalized through regeneration projects, helping to counteract the issues caused by out of town shopping.

26. CBD retail – example Birmingham, UK • The most important retail area of Birmingham has always been the Bullring (CBD). Even as a market town in the Middle Ages this was the focal point for the sale of goods. • The original Bull Ring shopping centre was built in 1964, it was a mixture of traditional open-air market stalls and a new indoor shopping centre. • The Bullring is the situation of the city’s PLVI. In the 1960s the retail giant Woolworths took the prime spot in the centre of the development. • Bull Ring Centre had problems from the beginning and was very much a product of its era. At the time of its opening it was considered the height of modernity, but higher rentals within the shopping centre meant that traders turned away from it. The public were also less inclined to use the subways and escalators, which stopped working regularly. • It became much disliked by the public and contributed to the popular conception that Birmingham was a concrete jungle of shopping centres and motorways. PVLI

27. The threat of out of town shopping: With the increase in car ownership by the 1980s, and the trend for outward movement of the wealthy towards city suburbs/rural fringe, outer city shopping malls began to develop. The Merryhill shopping centre was constructed on a site of a former steel works, 10 miles from Birmingham. For a while this threatened Birmingham’s reign as the most important regional shopping centre.

28. Redevelopment of the decaying CBD shopping district (brownfield redevelopment) Urban renewal at the Bullring: • Demolition of the 1960s Bull Ring Shopping Centre commenced in 2000. • It was replaced by a new design, mixing both traditional market activity with modern retail units. • Selfridges store (an exclusive department store – one of only 4 in the country) is now located at the PLVI. The store is housed in a dramatic landmark building designed by Future Systems architects. PLVI

29. Further resources http://www.school-portal.co.uk/GroupDownloadFile.asp?ResourceId=414360 See Shopping Geofile:

30. Manufacturing Activity

31. Manufacturing Activity There are a number of locations for industrial zones in cities. These include: • Inner city areas close to railways and/or canals, for example dock related industries such as imports and exports. • Brownfield suburban sites close to airports. • Sites away from residential locations, for polluting industries.

32. What is the location of Houston’s Economic Activity? Complete the table on the Weebly to outline the factors affecting the location of economic activities in Houston.Create an annotated map of Houston to explain the reasons location of the major commercial, retail and industrial activities.

33. Example exam essay questions: Examine the reasons for the location of economic activities (such as retailing, service and/or manufacturing industries) within an urban area. [10] 2017: Examine the reasons why economic activities change location in urban areas, including the use of brownfield sites.

34. 1800-1960 London Docklands Case Study Case study of urban deindustrialization and its economic, social and demographic consequences https://www.youtube.com/watch?v=dlVWhl78Gxg Key questions: • Where is London Docklands? • Why did deindustrialization happen here? • What have been the economic, social and demographic consequences of deindustrialization? See also case study notes on Weebly 1960-1980 Post 1981