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cbd real estate term

Cbd real estate term

CBD is a common abbreviation for central business district. This part of a city is also commonly known as downtown, or the city center. Central business districts are characterized by high-density development of office buildings, often including government centers and transportation hubs. The “CBD office market” is the term for demand for office real estate in a central business district. In most cities, the central business district represents an important part of the local commercial real estate market.

CBD Real Estate

Office space is the mainstay of central business districts, though they may also have tourist attractions, such as museums, sports and entertainment complexes. The real estate market is likely to include businesses that appeal to travelers, such as hotels, retail shops and restaurants.

CBDs and Suburbanization

During decades when suburban development was booming, demand declined in central business district markets. In many cities, corporate headquarters relocated from the CBD; over time, smaller companies began to follow them. Shoppers were more likely to head to a suburban mall than downtown shops or department stores.

A CBD can gain you a foothold in the affluent area of the city which is designed to support business.

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A central business district is the densely populated area of the city and makes up a significant portion of the city's skyline with tall skyscraper buildings and historic buildings. In many cases, it is in the oldest part of a city because that's where the center of commerce originated from and thus the highest concentration of residents and buildings reside. It's fairly common for CBDs to operate nearly 24 hours a day with service-type businesses operating during the day and restaurant or entertainment type businesses taking over at night. A few of the largest CBDs in the United States include the loop in Chicago, Midtown and Manhattan in New York, and Canal Street located in the French Quarter of New Orleans.

1. Location, location, location

Investing in a CBD can be a worthwhile investment for many businesses. Property taxes are often higher in these areas, but prime locations charge higher rental rates. Let's take a look at the top five reasons to invest in a CBD.