Location Theory - Land Use Determination

Requires a Wolfram Notebook System

Interact on desktop, mobile and cloud with the free Wolfram Player or other Wolfram Language products.

The projection of the bid rent curve on an area reveals the classic Residential-Commercial-Industrial (RCI) zoning model of urban planning. This example enlarges on this idea by assuming the central commercial business district is surrounded by a concentric ring of light industrial (Industrial I), then a ring of residential, then another ring of heavy industrial (Industrial II), then agricultural.

Contributed by: Roger J. Brown (March 2011)
Reproduced by permission of Academic Press from Private Real Estate Investment ©2005
Open content licensed under CC BY-NC-SA


Snapshots


Details

The area devoted to each use can be easily computed by noticing that the distance from the center constitutes a radius. Subtracting the area removed from the circle of interest by the next smaller circle leaves the area in use by a particular type. There is, of course, a correlation between rent offered and how much land is committed to a particular use.

More information is available in Chapter One of Private Real Estate Investment and at mathestate.com.

R. J. Brown, Private Real Estate Investment: Data Analysis and Decision Making, Burlington, MA: Elsevier Academic Press, 2005.



Feedback (field required)
Email (field required) Name
Occupation Organization
Note: Your message & contact information may be shared with the author of any specific Demonstration for which you give feedback.
Send