Considering the bid-rent model, when we see rents increase with proximity to the central business district, development will tend to

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05-07-2022
Business

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Considering the bid-rent model, when we see rents increase with proximity to the central business district, development will tend to

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sharmaaashutosh169 sharmaaashutosh169 · Answer 1 · 2022-07-19T03:02:44-04:00

Considering the bid-rent model, when rents rise in proximity to the central business area, construction will prefer to build upward on sites inside the central business district to accommodate numerous tenants.

The bid rent theory is a geographical economic theory that describes how real estate prices and demand vary as one moves out from the central business area (CBD). It is stated that diverse land users would fight for land in the city center.

This theory focuses on how land values influence land use patterns. These are also affected by transportation costs and accessibility.

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