Which concept explains why land close to the CBD tends to be used for high-value activities like offices and retail?

• A. Bid-rent theory.
• B. Sector model.
• C. Gravity model.
• D. Form-based Code.

Answer: (C)

Proximity to the CBD drives high land rents, so the most valuable activities sit closest to the center. This bid-rent pattern means offices and major retail are willing to pay the most to be near downtown accessibility, workers, and other firms, pushing rents up near the core. As you move away, rents drop, allowing lower-value uses to occupy outer rings. The gravity model describes flows between places and distance effects on interaction, not the land-use rent gradient that concentrates high-value activities at the center. The sector model explains growth along wedges from the core but doesn’t specifically account for how rent differences shape where firms locate. Form-based codes focus on form and design regulations rather than explaining why land near the center is valued most.