What is a Central Business District (CBD)?
A central business district (CBD) is the main commercial area of a city, consisting of the downtown area, surrounded by hotels, restaurants, retail stores and other businesses. As the main commercial area of the city and where most businesses are located, CBDs are often referred to as "the city center" or "the heart of the city." In most major cities, the CBD is usually located on one side of a river or other waterway that runs through the city.
Why is it beneficial to be near a central business district?
It's important to be near a central business district for a number of reasons. First, it's where the bulk of economic activity is located. This means that these areas are always going to be expanding, and thus you can benefit from the growth of your own business by being close by. Second, these areas usually have better infrastructure than other parts of town, allowing for improved human mobility and economic activity. Finally, CBD's carry a higher demand and thus, increased prices compared to the rest of the city. Here, a hotels average daily rate or a restaurant's menu pricing may be up to 25% higher than the suburban areas.