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It can be seen that commerce (in particular large department stores/chain stores) is willing to pay the greatest rent to be located in the CBD. The CBD 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 you move from the CBD, commerce is unwilling to pay as much for a site. In fact, what they are willing to pay declines rapidly.
Wiki User
∙ 11y ago
Chain stores are typically located in the Central Business District (CBD) because they target high foot traffic areas with good visibility, accessibility, and customer presence. The inner city areas are often more residential and may not offer the same level of commercial activity and visibility that chain stores seek. Additionally, CBD locations usually have higher rental costs, which may deter smaller businesses in favor of chains that can afford the expenses.
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