– Central Business District or CBD is a term to refer to the central business district. The CBD has become a major area of a city or small town devoted to commerce and business. As the name implies, the CBD is usually the financial center of the city and perhaps one of the busier areas. It is also usually home to landmarks , skyscrapers, and other unique features that make it stand out.

The main goal of the CBD is to provide a centralized and congested space for businesses to operate. This is why concentrations of office buildings, banks and other businesses are often seen in the CBD. However, the CBD can also be home to retail stores, restaurants and other forms of entertainment.

This is especially true in large cities where the CBD is perhaps the only place to find certain types of businesses or services. Because of its attractiveness, the price of land in the CBD is the most expensive land in the city because of its prime location and demand. This makes it a hot spot for businesses, both large and small.

  • What is CBD?
  • Functions and Characteristics of CBD
  • CBD Parts
  • Advantages of CBD
  • Lack of CBD

What is CBD?

The CBD is an area that is the commercial and business center of the city. In large cities, the CBD is often synonymous with the city's financial district. Geographically, it often coincides with the city center. In basic concept, CBD has two main parts, namely as Retail Business District (RBD) and Whole Business District (WBD).

RBD is filled with buildings that become shopping centers, supermarkets, malls, offices, hotels, halls, and also other types of buildings that become centers of business and financial transactions. Meanwhile, WBD includes warehouse buildings, markets, storage buildings and production areas.

The CBD area is indeed formed in such a way that it has a neater urban layout. Besides being neat, the CBD area is usually also clean and filled with green areas. so offices and green areas are combined to produce a better business area. In addition to maintaining the layout and tidiness, CBD usually has skyscrapers that are prestigious areas or trademarks of the area which are also national icons.

Because the CBD is an industrial or business area, of course, access to the CBD is very important. many toll roads and also access to public transportation that connects one CBD to another. This aims to make it easier for city dwellers or workers who work in this integrated business district to enter and leave work.

CBD Functions and Characteristics

There are several main characteristics that are often seen in the CBD or central business district. These characteristics help define what the CBD is and set it apart from the rest of the city. Some of these characteristics include:

Concentration of office and business buildings

The CBD is usually the financial center of the city, so it is home to a concentration of office buildings and businesses.

Central location within the city

The CBD is often located in the city center, making it easily accessible to other parts of the city.

High population density during the day

The CBD is usually a bustling area with a high population density during the day. The population density may decrease at night as people leave the area for settlement.

High land value

The CBD is often one of the most expensive lands in the city due to its prime and desirable location.

Lack of housing development

Due to the high value of land, the CBD often lacks residential development when compared to other areas of the city.

Unique landmarks and features

CBDs often have unique features that make them stand out from the rest of the city. These features may include landmarks, skyscrapers, and other unique buildings.

In the early 21st century, the CBD has become a diverse metropolitan area and includes residential, retail, commercial, university, entertainment, government, financial institutions, medical and cultural centres. City experts are often located in workplaces or institutions in the CBD. These include lawyers, doctors, academics, government officials and bureaucrats, entertainers, directors, and financiers.

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CBD Parts

The central business district or CBD includes areas of concentrated commercial activity that form the core of the economic and population density of a city or region. In some cities, the central business district is also called the economic district, but that is usually the case in cities where the financial industry has a large footprint in downtown offices. The central business district usually includes various types of business and commercial establishments. Perpetrators pay a high price to set up shop in the center of economic activity.

The CBD is key to urban planning, local and regional economic success, movement of goods and people, city life and culture, and much more. Typically, in many cities, the CBD is distinct from a cultural or historical area. But in some other urban cores, it overlaps partially or completely with the CBD. Other cities have more than one CDB. The identity of the CBD is economic development to attract businesses and residents to the area. One of them is by providing a stable economic base for all cities and regions.

In recent years, the central business district has also innovated with dynamic parking pricing, congestion penalties, car-free areas and, in some cases, residential population growth. The addition of residential populations to CBD areas in many cities has become a very significant planning innovation in recent years.

Advantages of CBD

The CBD area is important for several reasons. First, they are usually the financial heart of a city and home to a significant concentration of important businesses. This makes the CBD an important part of the city's economy. The second reason why CBDs are so important is that they often act as central points within the city, making it easier for people to get around and access other parts of the city.

This is especially important in large cities where the CBD may be the only place to find certain types of businesses or services. This usually includes some kind of well-developed public transport system such as subway, bus and rail systems.

Another reason CBDs are important is that they often have unique characters or landmarks and buildings that help define a city's identity and promote tourism. Typically, this includes the skyline of tall buildings, historic districts with unique architecture, or other identifiable landmarks.

The last reason related to the importance of CBD which is worth mentioning has to do with work. The CBD is often the main source of employment for a city, as it is home to business centers and office buildings. This can have a significant impact on the city's economy and

Lack of CBD

Behind all the advantages and luxuries of prestige, CBD also has disadvantages. One of them is the lack of facilities for the elderly because this area is intended for people of productive age. So, the CBD is not the right place for retirees, the elderly or the older population.

The CBD is also not a family-friendly space. Although most working class parents will work in or around the CBD. Given the density of this area, the CBD is also not the right area for children who are in an active period and love to play. Not only that, the CBD is also not the right location for housing and residential properties due to the lack of land so that it is more suitable for properties such as apartments, flats, and condominiums.