1、The Future of the Central Business DistrictGlobal ResearchMay 2023Creating dynamic urban centersThe Future of the Central Business District2The Central Business District(CBD)represents the commercial heart of the metropolitan area,containing the highest density of institutional grade office product,
2、major infrastructure hubs and government and cultural anchors.The delineation of the urban area as CBD or non-CBD is not always clear,with distinctions varying widely geographically.In this report we base the distinction of the CBD and the urban fringe on a combination of factors,including multinati
3、onal corporate office presence,land use balance,commercial real estate pricing expectations and historical development patterns.As a result,the CBD does not necessarily correspond to the definition of the broader city center or downtown.The interaction between the CBD and its immediate neighboring s
4、ubmarkets as well as the wider urban area is critical in understanding its future and plays a focal role in the scale of potential development.How do we define the Central Business District?New hybrid and remote-working arrangements,aging inventory,competition with emerging and non-traditional subma
5、rkets,long commutes and a lack of consistent footfall due to limited residential populations continue to weigh on the short-term outlook for many CBDs.Despite these challenges,the capacity for change is immense in these economic,cultural,educational and innovation hubs,helped by comparative advantag
6、es in infrastructure,accessibility,stock of underused real estate and the ability to scale growth.Over the long term,CBDs will be transformed through an emphasis on a balanced mix of uses and sustainability-oriented design,moving the focus from offices towards a multi-purpose destination and opportu