UBC Theses and Dissertations

UBC Theses Logo

UBC Theses and Dissertations

CBD office location patterns : a Vancouver case study Takahashi, David Leslie 1972

Your browser doesn't seem to have a PDF viewer, please download the PDF to view this item.

Item Metadata

Download

Media
831-UBC_1972_A8 T34.pdf [ 19.59MB ]
Metadata
JSON: 831-1.0302438.json
JSON-LD: 831-1.0302438-ld.json
RDF/XML (Pretty): 831-1.0302438-rdf.xml
RDF/JSON: 831-1.0302438-rdf.json
Turtle: 831-1.0302438-turtle.txt
N-Triples: 831-1.0302438-rdf-ntriples.txt
Original Record: 831-1.0302438-source.json
Full Text
831-1.0302438-fulltext.txt
Citation
831-1.0302438.ris

Full Text

CBD OFFICE LOCATION PATTERNS: A VANCOUVER CASE STUDY b y DAVID LESLIE TAKAHASHI B. Comm. (Econ.) University of B r i t i s h Columbia, 1970 A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS i n the School of Community and Regional Planning We accept this thesis as conforming to the required standard THE UNIVERSITY OF BRITISH COLUMBIA May, 1972 In presenting t h i s thesis i n p a r t i a l f u l f i l m e n t of the requirements for an advanced degree at the University of B r i t i s h Columbia, I agree that the Library s h a l l make i t f r e e l y available for reference and study. I further agree that permission for extensive copying of t h i s thesis for scholarly purposes may be granted by the Head of my Department or by his representatives. I t i s understood that copying or publication of t h i s thesis for f i n a n c i a l gain s h a l l not be allowed without my written permission. School of Community and Regional Planning The University of B r i t i s h Columbia Vancouver 8 , Canada Date: May, 1972. i i i ABSTRACT Beginning from the premise that there i s a p o s i t i v e c o r r e l a t i o n between form and process, t h i s study undertakes to uncover patterns of o f f i c e l o cation i n the Vancouver CBD. It i s hypothesized that intra-CBD location of o f f i c e s r e f l e c t the functional or i n t e r a c t i v e relationships that e x i s t between o f f i c e s . I t i s possible to i n f e r the existence of linkages by i d e n t i f y i n g groups or sets of o f f i c e types which are t y p i c a l l y found i n close physical proximity. Two main s t a t i s t i c a l techniques are u t i l i z e d i n the case study: p r i n c i p a l components analysis and grouping analysis. The former i s used to i d e n t i f y groups of o f f i c e types which exhibit tendencies to locate i n close proximity; the l a t t e r to i d e n t i f y sub-areas i n the CBD where the clu s t e r i n g of i n t e r r e l a t e d o f f i c e types i s most conspicuous. The r e s u l t s , although generally consistent with the hypothesis, cannot be regarded as conclusive as d i r e c t confirmation of the hypothesis i s not possible. The res u l t s are, however, encouraging and indicate the need for additional research i n t h i s important, but often neglected, area of urban location theory. i v TABLE OF CONTENTS Chapter Page I. INTRODUCTION . 1 Nature of the Problem . . . . . . . . . . . 1 Framework and Problem Statement . . . . . . 4 Hypothesis. . . . . . 9 Relevance of the Study . . . . . . . . . . 12 Previous Studies. . . . . . . . . 13 Chapter Organization . . . . 15 I I . LITERATURE REVIEW AND THEORY . . . . . . . . . 17 Trends . . . . . . . . . . . . . . . . . . 19 Spatial Structure and Functional Linkages . 29 Off i c e Location Patterns. . . . . . . . . . 37 I I I . OFFICE LOCATION PATTERNS: A MULTIVARIATE APPROACH . . . . . . . . . . . . . . . . . 44 Data Preparation . . . . . . . . . . . . . 45 Multivariate Analysis of CBD Offices . . . 51 Summary of Methodology . . . . . . . . . . 55 TV. OFFICE LOCATION PATTERNS IN THE VANCOUVER CBD. 57 Preliminary Results . . . . . . . . . . . . 57 Interpretation of the Factor Structure. . . 59 I d e n t i f i c a t i o n of O f f i c e Groups i n the CBD. 71 Grouping Analysis - I 72 V Chapter Page Delineation of Sub-areas i n the CBD. . . . . . 82 Grouping Analysis - II . . . . . . . . . . . . 84 Complex Factors. . . . . . . . . . . . . . . . 86 Off i c e Area Relationship . . . . . . . . . . . 88 V.CONCLUSIONS AND SUMMARY. . . . . . . . . . . . . 90 Shortcomings of the Study. . . . . . . . . . . 91 General Conclusions. . . . . . . . . . . . . . 93 Areas of Further Research. . . . . . . . . . . 93 BIBLIOGRAPHY. . . . 96 APPENDICES. 103 A. Survey Results of Studies on Factors Governing The Location of Off i c e Premises i n Central London. . 103 B. The Data . . . . . . . . . . . . . . . . . . . 104 C. Description of the Coding of Data. . . . . . . 107 D. Delimitation of the CBD. I l l E. D e f i n i t i o n of Of f i c e Establishments. . . . . . 118 F. S.T.C. Code. . . . . . . . . . . . . . . . . . 123 G. Weighted Percentage D i s t r i b u t i o n of O f f i c e s . . 132 H. The Arc Sine Transformation for Percentage Data 134 v i LIST OF TABLES Table Page 1. Percentage D i s t r i b u t i o n o f Employment i n the Lower Mainland by Industry Group. . . 21 2. Downtown Peninsula Employment Estimates by Major Groups . 22 3. O f f i c e Space i n the Ci t y of Vancouver - 1971 24 4. Commercial Land Values i n the Downtown Peninsula - 1971. . . . . . . . . . . . . 31 5. C l a s s i f i c a t i o n of O f f i c e s . . . . . . . . . . 50 6. S i g n i f i c a n t Intercorrelations for Each Variable. 58 7. Factor Loading on 41 Off i c e Classes (Varimax Rotated) . . . . . . . . . . . . 60 A - l Major Headings of S.I.C. Code as Defined by the C i t y of Vancouver . . . . . . . . . . 116 v i i LIST OF FIGURES Figure Page 1. Distance and Reciprocity Biases . . . . . . . 40 2. Island E f f e c t Bias. . . . . . . . . . . . . . 40 3. Overlapping Acquaintanceship Bias . . . . . . 40 4. Force F i e l d Bias. . . . . . . . . . . . . . . 40 5. Flowchart of Methodology. . . . . . . . . . . 56 6. Correlations Between O f f i c e Types S i g n i f i c a n t at 0.05 Level. . . . . . . . . . . . . . . 62 A - l The Arc Sine Square Root Transformation for Percentage Data. . . . . . . . . . . . . . 136 v i i i LIST OF MAPS Map Page 1. Of f i c e Areas i n the City of Vancouver. . . . . 25 2. The Vancouver Central Business D i s t r i c t - 1969 47 3. Factor I - The Head, Government and Professional Business Offices Group . . . . 73 4. Factor II - The Forest-Industry Group. . . . . 74 5. Factor III - The Earth-based Group . . . . . . 75 6. Factor IV - Consumer-oriented Group. . . . . . 76 7. Factor VII - The insurance Group . . . . . . . 77 8. Factor VIII - The Fi n a n c i a l Group. . . . . . . 78 9. Factor X - The A n c i l l a r y Services Group. . . . 79 10. Factor XII - The Light Manufacturing Group . . 80 11. Factor XIII - The Mining A c t i v i t y Group. . . . 81 12. D i s t r i b u t i o n of Similar O f f i c e Types . . . . . 85 A - l Area Covered by Land Use Survey - 1969 . . . . 105 A-2 Coordinate System Used i n the Vancouver Downtown Peninsula. . . . . . . . . . . . . 108 A-3 Commercial Zoning i n the Downtown Peninsula - 1970. . . . . . . . . . . . . . . . . . . 113 A-4 Approximate Extent of CBD Indicated by Murphy-Vance Technique. . . . . . . . . . . 117 A-5 Coding of Block Fronts i n CBD Study Area . . . 122 ACKNOWLEDGMENT I am deeply indebted to Professor Paul 0. Roer whose guidance and c r i t i c i s m played a key role i n the writing of t h i s thesis - his influence i s everywhere present. In addition, I am also appreciative of the cooperation I received from both the Vancouver C i t y Planning Department and the Greater Vancouver Regional D i s t r i c t i n providing data and information that other-wise would have been unobtainable. L a s t l y , I would l i k e t o express my gratitude to my t y p i s t , Miss Kei Sakai, who 'burned the midnight o i l ' at my side. CBD OFFICE LOCATION PATTERNS - A VANCOUVER CASE STUDY -CHAPTER I INTRODUCTION 1.1 Nature of the Problem 1.2 Framework and Problem Statement 1.3 Hypothesis 1.4 Relevance of the Study 1.5 Previous Studies 1.6 Chapter Organization CHAPTER I INTRODUCTION 1.1 Nature of the Problem During the past decade or so, the C e n t r a l Business D i s t r i c t s (CBD) i n many North American c i t i e s have experienced a boom i n o f f i c e - b u i l d i n g c o n s t r u c t i o n . As most ot h e r economic a c t i v i t i e s continue t o suburbanize, i t appears t h a t CBD land-use p a t t e r n s w i l l i n c r e a s i n g l y c e n t e r about o f f i c e - t y p e employment. Two o b s e r v a t i o n s about o f f i c e d e c e n t r a l i z a t i o n r e i n f o r c e the n o t i o n t h a t the CBD's p o s i t i o n as the m e t r o p o l i t a n r e g i o n ' s major o f f i c e - c e n t r e w i l l be maintained. The f i r s t i s the l i m i t e d o f f i c e d e c e n t r a l i z a t i o n t h a t has a c t u a l l y o c c u r r e d . F o l l o w i n g the d e c e n t r a l i z a t i o n of the headquarter o f f i c e s of General M i l l s from i t s Manhattan l o c a t i o n i n 1954, i t was wi d e l y p r e d i c t e d t h a t i t would be only a matter of time before suburban o f f i c e s became a widespread phenomena. The passage of time has proved otherwise; the p r e d i c t i o n s of widespread o f f i c e suburbaniza-t i o n t h a t f l o u r i s h e d i n the 1950's has not m a t e r i a l i z e d . Secondly, i n a few i n s t a n c e s , a government p l a n n i n g p o l i c y of encouraging o f f i c e d e c e n t r a l i z a t i o n has been adopted w i t h the e x p e c t a t i o n t h a t r e g i o n a l o f f i c e c e n t r e s 2 would develop as a consequence. However, aside from government o f f i c e s , which have abided by t h e i r own dictates, p o l i c i e s aimed at o f f i c e suburbanization have experienced neither widespread acceptance nor any r e a l degree of success. The conclusion to be drawn from the above observa-tions i s that the primacy of the CBD as an o f f i c e centre i s c e r t a i n l y not on the wane, and would appear to be growing i n importance. Additionally, i t suggests that the CBD possesses some c h a r a c t e r i s t i c s or advantages not available to the same degree elsewhere i n the metropolitan region. The Advantages of the CBD The l i t e r a t u r e suggests that the advantages possessed by the CBD over other areas i n the region are at least two-f o l d . Most sources c i t e the CBD's c e n t r a l i t y or a c c e s s i b i l i t y to the maximum metropolitan population as a prime advantage possessed by the CBD. A second advantage arises from the concentration of establishments and a c t i v i t i e s i n the CBD. This has been termed agglomeration economies or external economies. Studies of the location of economic a c t i v i t i e s i n urban areas have resulted i n the growth of a considerable body of l i t e r a t u r e commonly referred to as urban land use theory. In i t s simplest formulation, t h i s theory states that the u t i l i z a t i o n of land i s determined by the r e l a t i v e 3 e f f i c i e n c i e s of various uses at various locations e f f i c i e n c y i n the u t i l i z a t i o n of land being measured by the rent paying a b i l i t y of firms. With urban s i t e s being allocated to t h e i r "highest and best use", i n the aggregate, economic a c t i v i t i e s would be di s t r i b u t e d about the urban area as a re s u l t of the d i f f e r e n t i a l rents which they are capable of paying. A major deficiency of urban land use theory i s that while i t i s of considerable value i n explaining the forces operating to shape urban s p a t i a l structure i n the aggregate, i t i s inadequate to explain location on a l o c a l or micro-l e v e l . What has been generally ignored i n urban land use theory i s that concentration of a c t i v i t i e s i n i t s e l f creates cer t a i n advantages such as f a c i l i t a t i n g transactions, permitting s p e c i a l i z a t i o n , etc. While some forces r e s u l t i n o f f i c e establishments choosing to locate i n the CBD, other forces simultaneously determine the location of in d i v i d u a l a c t i v i t i e s within the CBD. Moreover, the forces working on the micro-level are d i f f e r e n t from those that have led t o the decision to locate i n the CBD. Intra-CBD' Location Because economic a c t i v i t i e s occupy space (and not points i n space) they must be s p a t i a l l y separated. Therefore, even a small area such as the CBD cannot be considered as 4 being homogenous space since i f functional associations e x i s t between some establishments, the space w i l l become d i f f e r e n t i a t e d . The location of an establishment w i l l be influenced by i t s r e l a t i o n s within the CBD as much as by the re l a t i o n s h i p of the CBD to the entire metropolitan region. If the cost of overcoming s p a t i a l separation within the CBD i s high, the micro-level l o c a t i o n a l decision w i l l become increasingly important. The location decision should be viewed as a two-step process: f i r s t comes the decision to locate i n the CBD, and second comes the decision on where to locate i n the CBD. This study concerns i t s e l f with the second type of l o c a t i o n a l decision-making. In p a r t i c u l a r , i t i s f e l t that greater importance must be attached to external e c o n o m i e s - — s p e c i f i c a l l y , intra--offi.ee i n t e r a c t i o n as a location factor. I t i s the opinion of the writer that the reasons for the lack of o f f i c e decentralization can be traced to the existence of such external economies. 1.2 Framework and Problem Statement In t h i s study the CBD w i l l be viewed as being comprised of numerous decision-units ( i . e . establishments) which are s p a t i a l l y concentrated and fun c t i o n a l l y associated. 5 Each establishment may have i t s own set of associations outside the CBD but as well i t has i t s own set of associations within the CBD. The outside associations play a role i n determining the choice of the CBD as a place of locati o n . The intra-CBD associations play a ro l e i n determining within CBD location. Only i n the l a s t few decades have the s p a t i a l patterns of urban economic a c t i v i t i e s , come under serious a n a l y t i c a l scrutiny. The majority of these studies have stressed the location of manufacturing or industry, r e t a i l o u t l e ts, or residences. O f f i c e a c t i v i t i e s have generally been ignored or treated i n a s u p e r f i c i a l manner. Most so-called o f f i c e studies can be categorized as inventories or surveys of o f f i c e space, descriptive studies of e x i s t i n g o f f i c e f a c i l i t i e s , or opinion surveys of o f f i c e space users. With few exceptions, there has been no attempt to explain why o f f i c e s are located i n a p a r t i c u l a r area. In urban land use theory, when considered at a l l , o f f i c e a c t i v i t i e s have usually been treated as an und i f f e r -entiated class of a c t i v i t i e s . Thus, the role of functional associations or external economies have not been incorporated i n t h i s theory. A d i f f e r e n t approach i s therefore indicated, one which can include these aspects. Direct Incorporation of external economies would be exceedingly d i f f i c u l t since 6 economists have not yet been able to reach any consensus concerning q u a n t i f i c a t i o n of external economies. This d i f f i c u l t y i s compounded i n the case of o f f i c e a c t i v i t i e s since o f f i c e output i t s e l f i s d i f f i c u l t to quantify. An i n d i r e c t means of determining the importance of external economies as a location factor i s therefore required. /.It i s a major assumption of this study that a d i r e c t and p o s i t i v e c o r r e l a t i o n exists between s p a t i a l form and functional process. This simply means that functional associations between establishments i s r e f l e c t e d i n t h e i r s p a t i a l and l o c a t i o n a l r e l a t i o n s h i p . The l i t e r a t u r e tends to support t h i s assumption though empirical evidence i s s t i l l l i m ited. For instance, Foley'*' states: I t i s e s s e n t i a l , for various purposes, to d i s t i n g u i s h between (I) form (or morphological or "anatomical") and (II) process (or functional or "physiological") aspects of metropolitan structure. He goes on to say: Insofar as process ine v i t a b l y occurs i n space, i t i s the s p a t i a l pattern of a c t i v i t y location (form) that serves to e s t a b l i s h the correspond-ing s p a t i a l pattern of i n t e r a c t i o n (process). Conversely, a s e n s i t i v i t y to the interactions that must be maintained has an e s s e n t i a l bearing on the location of a c t i v i t i e s . y Other writers could also be c i t e d . However, since the assumption i s c r i t i c a l a considerable portion of the Foley (1964), p. 35 and p. 37. 7 subsequent chapter w i l l , instead, be devoted to t h i s t o p i c . /For the present purposes, i t i s s u f f i c i e n t to note that the assumption leads to the conclusion that o f f i c e location within the CBD i s not random. More s p e c i f i c a l l y , i t means that o f f i c e s that are f u n c t i o n a l l y - l i n k e d w i l l tend to be s p a t i a l l y - l i n k e d as well. A second assumption, and one that follows d i r e c t l y from the f i r s t assumption, i s that the behaviour of i n d i v i d u a l decision-units i n 2 choosing location i s r a t i o n a l (eg. profit-motivated). Though market imperfections of a physical, i n s t i t u t i o n a l or s o c i a l nature e x i s t and w i l l have some d i s t o r t i n g e f f e c t , nevertheless i n toto some dis c e r n i b l e rationale should e x i s t i n the choice of intra-CBD o f f i c e location^/ The s p a t i a l arrangement of a c t i v i t i e s within the CBD, at any given point i n time, represents the cumulative decision-making of many i n d i v i d u a l decision-units. Further-more, the location of these a c t i v i t i e s i s unplanned i n the sense that o f f i c e a c t i v i t i e s can choose from a variety of d i f f e r e n t locations within the CBD since o f f i c e f l o o r space ^"Place u t i l i t y " i s a very complex subject. I t i s a product of an individual's needs and information. I t i s usually assumed manifested i n a desire to maximize or minimize or maintain a c e r t a i n l e v e l of a c t i v i t y ( s a t i s f i c e ) or an attempt t o outwit a competitor (game theory). See Simmons (1968) , pp. 37-41 for a f u l l e r discussion of t h i s point. 8 i s adaptable for many purposes. Over the long run, a r a t i o n a l pattern of a c t i v i t y l o c ation w i l l tend to emerge. Market forces w i l l r e s u l t i n establishments locating i n unfavourable locations either becoming bankrupt or else signal the need to re-locate. Firms recognizing t h e i r functional associations with other firms w i l l not be i n d i f f e r e n t to locat i o n . Thus by examining the s p a t i a l d i s t r i b u t i o n of o f f i c e establishments, i t should be possible to gain some knowledge of the functional associations that e x i s t between o f f i c e a c t i v i t i e s . Generally, i t i s expected that fu n c t i o n a l l y associated a c t i v i t i e s w i l l tend to locate nearer together than those not so associated. I t i s re a l i z e d , of course, that o f f i c e s located next door to each other or even i n the same building or block do not necessarily have any functional associations. Consequently, a blanket assertion that establishments that are located i n proximity to one another are fu n c t i o n a l l y associated with one another would be grossly misleading. I f , however, i t i s found that p a r t i c u l a r types of o f f i c e s are consistently found i n close proximity to one another ( i . e . form groups) thi s may be regarded as evidence that some functional association probably e x i s t s . 9 1.3 Hypothesis P a t t e r n s o r groupings o f o f f i c e types t h a t are f u n c t i o n a l l y a s s o c i a t e d w i l l emerge f o r a t l e a s t t h r e e reasons: 1. Some esta b l i s h m e n t s are complementary, 2. Some establishments are c o m p e t i t i v e , 3. Some esta b l i s h m e n t s are interdependent. The t h r e e reasons are not mutually e x c l u s i v e a l l engender v a r i o u s aspects of e x t e r n a l economies. As a c o r o l l a r y , i t f o l l o w s t h a t i f economic a c t i v i t i e s on the m i c r o - l e v e l were not complementary, c o m p e t i t i v e , or interdependent t o one another, there would be no reason t o expect any p a t t e r n s of o f f i c e l o c a t i o n t o emerge. S i m i l a r l y , i f a l l a c t i v i t i e s i n the CBD were complementary, c o m p e t i t i v e , o r interdependent w i t h one another, i t would not be expected t h a t any meaningful p a t t e r n s of o f f i c e l o c a t i o n c o u l d be i d e n t i f i e d . Although p h y s i c a l i n t e r a c t i o n (movement) between o f f i c e s are the most obvious m a n i f e s t a t i o n of i n t e r - o f f i c e a s s o c i a t i o n s , even i n the absence of such flows, some p a t t e r n s of o f f i c e l o c a t i o n would emerge. I t i s commonly re c o g n i z e d t h a t c e r t a i n types of a c t i v i t i e s are complementary and/or c o m p e t i t i v e w i t h other a c t i v i t i e s . T h i s n o t i o n i s probably most h i g h l y developed f o r r e t a i l e s t a b l i s h m e n t s , p a r t i c u l a r l y i n the case of shopping centres. Checklists have even been prepared for shopping centre developers on the s u i t a b i l i t y of various types of establishments as tenants. The f a c t that various o f f i c e a c t i v i t i e s also exhibit some preferences for location on the micro-level i s evidenced i n some cases i n the CBD. The popular conception of Wall Street and Madison Avenue i n New York City as centres of f i n a n c i a l and advertising a c t i v i t i e s respectively provide examples of t h i s . On the l o c a l scene, Howe Street i s commonly referred to as Vancouver's centre for stock trading and mining a c t i v i t y . While the i d e n t i f i -cation of sub-areas within the CBD i s of some i n t e r e s t , t h i s represents only the " t i p of the iceberg". There are, i t i s f e l t , more complex underlying o f f i c e location patterns not so e a s i l y ascertainable. The general hypothesis of t h i s study i s that functional associations are an important factor i n determin- ing o f f i c e l o cation within the CBD. Three testable hypotheses are formulated from t h i s general hypothesis: 1. Groupings of interdependent o f f i c e a c t i v i t i e s are i d e n t i f i a b l e within the CBD. That i s , 11 recurrent groups of o f f i c e s having s p a t i a l associations can be measured s t a t i s t i c a l l y . 2. Sub-areas of i n t e r - r e l a t e d o f f i c e a c t i v i t i e s may be s t a t i s t i c a l l y delimited within the CBD for example, a f i n a n c i a l d i s t r i c t . 3. The r e l a t i v e l o c ation of various o f f i c e areas i n the CBD stems from t h e i r functional r e l a t i o n -ships. Generally i t i s expected that the s p a t i a l ordering of o f f i c e groups i s f u n c t i o n a l l y j u s t i f i a b l e . None of the testable hypotheses constitutes a v a l i d proof of the general hypothesis. To obtain the data to do so seems v i r t u a l l y impossible. Gottman,3 i n attempting to obtain data of the type necessary to conduct an inquiry of th i s sort, was f i n a l l y forced to give up i n f r u s t r a t i o n : This study proved to be quite d i f f i c u l t to do, p a r t i c u l a r l y as attempts at showing the linkages between the various a c t i v i t i e s c a r r i e d out i n the o f f i c e s and between o f f i c e work and related f a c i l i t i e s i n Manhattan met with the obstacles of secrecy imposed by competition or by c o n f i d e n t i a l aspects of transactions. The i n a b i l i t y to d i r e c t l y t e s t a hypothesis commonly arises i n the s o c i a l sciences. Some consolation i s provided by Helmer and Rescher^ who state: ...an explanation i s regarded as satisfactory i f , while short of l o g i c a l l y e n t a i l i n g the 3Gottman (1970), p. 325. ^Helmer and Rescher (1960), p. 11. 12 hypothesis, i t succeeds i n making the statement to be explained highly credible i n the sense of providing convincing evidence for i t . 1.4 Relevance of the Study The study of the ex i s t i n g patterns of o f f i c e location w i l l provide some notion of how "natural" forces have acted i n shaping CBD o f f i c e space use. What should emerge i s the tendency for c e r t a i n office-types to c l u s t e r or form discrete groups. Discovery of these patterns should provide a take-off point for further analyses. Planners have t y p i c a l l y been more concerned about a c t i v i t i e s as they occur on the s i t e rather than the function system of which they are a part. This over-riding physical preoccupation i s attested to by the wealth of data concerning property values, taxes, sales volume, physical space, construction a c t i v i t y , vehicular t r a f f i c , a v a i l a b i l i t y of parking space, etc. Knowledge of how the various a c t i v i t i e s located i n urban areas are interconnected i n contrast i s extremely scanty. At present, the planners' tools for shaping the CBD's growth and development are powerful but i t often appears applied without r e a l l y knowing what the impacts w i l l be. Zoning, height and bulk regulations, etc. a l l have a role i n creating an e f f i c i e n t , and perhaps aesthetic setting for the CBD. Planners have not played a r o l e i n determining the location of most i n d i v i d u a l decision-units within the CBD. P o t e n t i a l l y , at l e a s t , planners could encourage more e f f i c i e n t use of CBD o f f i c e space by designating uses that could locate i n c e r t a i n areas or buildings. Such po t e n t i a l would a r i s e i f i t can be shown that groups of CBD o f f i c e s are f u n c t i o n a l l y associated. As well as providing a more rationale basis for CBD land use planning, i t may suggest that a regional o f f i c e centre would be f e a s i b l e i f whole groups of o f f i c e s could be located there simultaneously. 1.5 Previous Studies There have been few attempts to study the s p a t i a l arrangement of a c t i v i t i e s i n the CBD, fewer yet deal with o f f i c e a c t i v i t i e s . The majority have taken a univariate approach. That i s , they have segregated c e r t a i n kinds of establishments and then by using d i r e c t mapping, concen-t r a t i o n indices, d e l i m i t a t i o n of clusters on the ground, and various g e o - s t a t i s t i c a l techniques, simply seen how they are grouped i n p a r t i c u l a r parts of the CBD. But because they attempted to deal with a single a c t i v i t y (or a c t i v i t i e s one at a time) the i n t e r - r e l a t i o n s h i p s between a c t i v i t i e s have usually been unspecified or 14 else extremely coarse. Or as Gottman succinctly phrased i t , the analysis of linkages has t y p i c a l l y been approached "more i n t u i t i v e l y than systematically."5 An early study dealing with the s p a t i a l aspects of functional organizations i n the central c i t y was that conducted by Rannels^ i n Philadelphia. More recent studies have used a variety of sophisticated s t a t i s t i c a l techniques to analyze central c i t y location patterns. Whipple 7 i n Melbourne has used the Pearson product moment c o r r e l a t i o n to f i n d associations between CBD land uses. Getis and G e t i s 8 used a technique c a l l e d sequence analysis to f i n d associations between r e t a i l establishments i n the downtown area of 13 American c i t i e s . Goddard^ i n London used a number of multivariate s t a t i s t i c a l techniques (factor analysis, c l u s t e r analysis, and grouping analysis) to uncover linkages between classes of o f f i c e s . The present study bears closest resemblance to Goddard's s t a t i s t i c a l analysis of o f f i c e location patterns i n London's central area. 5Gottman (1970) , p. 327 6Rannels (1956) . 7Whipple (1968), pp. 64-70. 8 G e t i s and Getis (1968), pp. 317-332. 9Goddard (1968), pp. 69-85. 15 In t h i s study multivariate s t a t i s t i c a l techniques w i l l be employed i n a search for s p a t i a l associations between various o f f i c e a c t i v i t i e s within the Vancouver CBD. 1.6 Chapter Organization The remainder of the thesis proceeds i n four parts. Chapter II reviews current trends i n o f f i c e l o c ation and employment, provides an overview of the theory underlying t h i s study, and previews the o f f i c e l o c ation patterns that could emerge. The t h i r d chapter i s divided into two main sections. In the f i r s t section the methodology used to prepare the data for analysis i s presented and the following section presents a b r i e f description of the methodology of the case study. As well, more detailed descriptions of the methodologies used have been included as appendices for those who are interested i n pursuing the subject matter further. The fourth chapter deals with the res u l t s and i n t e r p r e t a t i o n of the re s u l t s of the case study. And l a s t l y , Chapter V provides a summary and the conclusions a r i s i n g from the study. x x x 16 The concentration of o f f i c e s i n the downtown area i s of special i n t e r e s t i n t h i s study. Upon the assumption that a r e l a t i o n s h i p exists between form and process, i t i s hypothesized that i t i s possible for patterns of o f f i c e l o c ation to be i d e n t i f i e d within the CBD. The n u l l hypothesis would state that o f f i c e location on the micro-l e v e l i s non-systematic. General studies such as the New York Metropolitan Region Study have indicated that the structure of the CBD consists of numerous i n t e r - r e l a t e d a c t i v i t i e s providing external economies for each other. The need to consider the i n t e r - r e l a t i o n s h i p between various a c t i v i t i e s i s thus obvious. CHAPTER I I LITERATURE REVIEW AND THEORY 2 . 1 Trends 2 . 2 S p a t i a l S t r u c t u r e and F u n c t i o n a l Linkages 2 . 3 O f f i c e L o c a t i o n P a t t e r n s CHAPTER II LITERATURE REVIEW AND THEORY Introduction The dominance of the CBD as an o f f i c e centre strongly suggests that there are important advantages i n locating o f f i c e s i n close proximity to one another."'" The nature of these c e n t r a l i z i n g forces and how they influence location and s p a t i a l patterns on a micro-level ( i . e . within the CBD) i s the focus of the discussion i n t h i s chapter. The discussion i s presented i n three parts. The f i r s t part outlines continuing trends of o f f i c e l o c ation and o f f i c e employment. The second part discusses the c r u c i a l assumption on which t h i s study i s based-—the rel a t i o n s h i p of form and process. In p a r t i c u l a r , the connections between s p a t i a l i n t e r a c t i o n , external economies and a c c e s s i b i l i t y are drawn. The l a s t part deals with the patterns of o f f i c e location that might be expected within the CBD. The lack of an o f f i c e l o c ation model has been recognized by many authors. For instance, B r i t t o n Harris xGottman (1970), p. 325 s t a t e s " . . . d e c e n t r a l i z a t i o n of the upper l e v e l of the s e r v i c e s has been more d i f f i c u l t t o achieve than the d i s p e r s a l of manufactures or of rank and f i l e o f f i c e s " because of "the interdependence of quarternary a c t i v i t i e s , " i n c l u d i n g a d m i n i s t r a t i o n , f i n a n c e , 18 states: "Even aft e r we sort out those commercial and service a c t i v i t i e s which can be located by methods applicable t o r e t a i l trade, there i s a wide variety of residual o f f i c e space users whose needs are rather poorly understood."2 To make up for t h i s deficiency, even rather sophisticated models of urban areas have had to make rather gross assump-tions about o f f i c e l o c a t i o n . The BASS (Bay Area Simulation Study) study of San Francisco, for example, states quite simply: " . . . r e l a t i v e l y l i t t l e i s currently known about o f f i c e l o c a t i o n . . . . " ^ This seems an accurate summary of the state of knowledge concerning o f f i c e l o c a t i o n . research, advertising, and the mass media. Such a c t i v i t i e s f i t under the heading of both face-to-face contact and special i z e d a c t i v i t i e s . 2 Harris (1968), p. 62. Goldberg (1970a), p. 25, makes a sim i l a r statement. 3 CREUE (1968), p. 189. As well, a landmark study and one that suggests a variety of reasons for the continued dominance of the CBD as an o f f i c e centre are the various volumes of the New York Metropolitan Region Study. Though primarily d e s c r i p t i v e , they contain many perceptive insights concerning the location of o f f i c e s i n the CBD. The volumes by Hoover and Vernon (1959), Robbins and Terleckyj (1960), Lichtenberg (1960) and Vernon (1963) are p a r t i c u l a r l y relevant. 2.1 Trends 19 As a point of takeoff, a few observations about trends i n office-type employment and o f f i c e l o cation with p a r t i c u l a r reference to the Vancouver Area should be noted. 1. O f f i c e Employment The dramatic increase i n office-type employment i n recent decades can be attributed to: a) Growth i n urban population, b) Increases i n business a c t i v i t y and i n l e v e l s of income, c) Alterations i n the s o c i a l structure of society.4 Every succeeding census has found an increasing proportion of the population i n urban areas as ' compared to r u r a l areas. This r u r a l to urban s h i f t alone would account for an increase i n the number of office-type jobs. A d d i t i o n a l l y , as the standard of l i v i n g and incomes have increased, there has been demand for more services and also services of a more specialized nature which has led to a corresponding increase i n office-type employment. Moreover, the importance of primary 4 Rapkin ( 1 9 7 0 ) , p. 2 2 7 . 20 and secondary industries have been dec l i n i n g r e l a t i v e to t e r t i a r y i n d u s t r i e s . Because the number of office-type jobs i n the t e r t i a r y sector industries are t y p i c a l l y greater than i n other indu s t r i e s , there has been a more than proportional increase i n office-employment. The o v e r - a l l e f f e c t of these three trends has been a rapid growth i n office-type employment, and i t i s expected that t h i s rapid growth w i l l continue i n the future. (See Tables 1 and 2.) 2. O f f i c e Location The alleged advantages of a suburban location lower land and r e n t a l costs, more relaxed environ-ment, dispersed labour force, good transportation and communication connections with the CBD, higher auto usage, etc. has apparently had l i t t l e influence on the location decision of most major office-space users.^ Construction trends across North America reveal that though the CBD's proportion of the urban regions o f f i c e space i s declining i n r e l a t i v e terms, i n absolute terms the CBD i s more than holding i t s own. In f a c t , many c i t i e s are now experiencing an o f f i c e building construction boom Fisher (1967), Carruth (1969), and Seligman (1963). TABLE 1 PERCENTAGE DISTRIBUTION OF EMPLOYMENT IN THE LOWER MAINLAND BY INDUSTRY GROUP (1951 - 1981) EMPLOYMENT AS PERCENT OF TOTAL % Change ECONOMIC ACTUAL** FORECAST ESTIMATES In Employment+ ACTIVITY 1951 1961 1971 1981 2000 1971 to 1981 range mean agriculture 4.4 2.9 1.6 1.0 -65.5 extractive 4.3 2.8 1.4 0.8 -71.5 TOTAL PRIMARY 8.7 5.7 3.0 1.8 1-2 1. 5 -68.5 manufacturing 24.0 18.9 19.0 19.0 + 0.5 construction 7.1 6.8 6.8 6.8 ••+ 0.0 TOTAL SECONDARY 31.1 25.7 25.8 25.8 22-26 24. 0 transportation group 11.4 11.4 11.6 11.6 + 1.75 trade 19.2 19.5 19.5 19.5 + 0.0 finance group 4.2 5.1 5.5 5.5 + 7.4 services*** 24.0 23.3 24.9 25.9 +12.1 public administration 1.4* 9.3 9.7 9.9 + 6.5 TOTAL TERTIARY 60.2 68.6 71.2 72.4 72-77 74. 5 + 5.5 *Public administration employment grouped with "Service" u n t i l 1961. **1951 and 1961 Census not s t r i c t l y comparable due to SIC revisions and introduction of the "New Establishment Concept." ***Community, business and personal service industries. +Some error due to rounding. Source: Real Estate Board of Greater Vancouver (1971), Real Estate Trends i n  Metropolitan Vancouver/ 1971, p. 6. TABLE 2 DOWNTOWN PENINSULA EMPLOYMENT ESTIMATES BY MAJOR GROUPS 1965 1985 Increase Group Amount Percent Amount Percent 1965-1985 Office 54,920 62.. 34 90,600 69.96 36,680 Re t a i l 12,130 13.77 13,930 10.76 1,800 Service 8,960 10.18 15,590 12.04 6,630 Indus t r i a l 5,000 5.67: 4,000 3.09 - 1,000 Wholesale 3,500 3.97 1,600 1.23 - 1,900 Other (education & di s t r i b u t i o n ) 3,500 4.07 3,780 2.92 280 Totals 88,100 100.00 129,500 100.00 41,400 Source: Based on Revised estimates ( A p r i l , 1969) of Vancouver Transportation Study projections (VTS, 1966). to i n o f f i c e construction i n i t s CBD area. Results of a recently completed o f f i c e space survey reveals that over 2 m i l l i o n square feet of o f f i c e space i n the Vancouver downtown peninsula i s presently under 7 construction, and more i s i n the planning stages. (See Tables 3 and Map 1.) Trends i n o f f i c e locations i n larger c i t i e s are of p a r t i c u l a r i n t e r e s t because the number and size of o f f i c e a c t i v i t i e s and hence the opportunities of re-lo c a t i n g i n a suburban location would appear to be greater. The experiences i n these c i t i e s , however, would appear to mirror those i n Vancouver. In New York C i t y , analysis of trends i n new o f f i c e -b u i l d ing construction show that between 1963 and 1970 "there has been no decentralization of o f f i c e -buildings from the Manhattan CBD at a l l . " 8 This l a t t e r r e s u l t i s consistent with another investigation on suburbanization of o f f i c e s i n the New York Region which indicated that many of 7 Greater Vancouver Real Estate Board (1971), p. 2. There i s currently approximately a t o t a l of 12.5 m i l l i o n square feet of o f f i c e space i n the Greater Vancouver Region. Of this, approximately 2/3 or 8 m i l l i o n square feet are located i n the downtown peninsula. (GVRD (1971), p. 2). 8Regional Plan Association (1971), p. 22. This i s based on the fac t that 50 percent of the Region's o f f i c e f l o o r space i n 1963 was located i n the Manhattan CBD, and 50 percent of the new construction since that date has been located there also. TABLE 3 OFFICE SPACE IN THE CITY OF VANCOUVER - 1971 (by main commercial areas)* E x i s t i n g Office Space Office Under Construction A. Downtown Peninsula 7,935,000 2,032,000 B. Broadway 1,101,000 149,000 C. East Hastings . 308,500 D. Fraser 254,500 E. Main 184,000 F. Kingsway 229,500 G. Other 885,000 35,000 Total Vancouver City 10,897,500 2,216,000 *See Map 1 for location of these o f f i c e areas. Source: Real Estate Board of Greater Vancouver, Office Space Survey, 1971.,p.2. 'WEST i ENGLISH BAY NORTH NORTH VANCOUVER A | DISTRICT VANCOUVER;— • > * > . — I — f e \ j w t ? 3 s  V X . J~5LJ ^ENINSUlTA? C I T Y " OF VANCOUVER Tlx pflaudi!-* I N G S ST. BROADWAY BURNABY DISTRICT MUNICIPALITY RICHMOND • r.T~.?j, \ JF/R OFFICE AREAS IN THE CITY OF VANCOUVER - 1971 26 the alleged advantages of the suburbs have proved i l l u s i o n a r y . 9 Among the sources of disenchantment were l o s t contacts, demoralization of s t a f f , d i f f i c u l t i e s i n r e c r u i t i n g s t a f f , higher turnover of young executives, d i f f i c u l t i e s i n providing transportation, need to r e t a i n t i e s with CBD o f f i c e s , and long absences of key personnel who needed to t r a v e l downtown to consumate business transactions. The main impetus for suburbanizing appears to be the i n a b i l i t y to f i n d s u f f i c i e n t o f f i c e space i n a single building at a suitable location within the CBD rather than the advantages attributed to a suburban l o c a t i o n . ^ The advantages of a suburban lo c a t i o n , when considered at a l l , appear to be secondary. Similar conclusions can be drawn 9Herrera (1967), p. 106-109+. The headquarter o f f i c e s of 138 of the 500 largest U.S. corporations are located i n the New York Region. Of these, only 10 have chosen to re-locate i n a suburban location during the period 1954 to 1967. At l e a s t one has returned to Manhattan. Moreover, even those firms which have suburbanized have not been able to sever a l l t i e s with the CBD; a number of them s t i l l maintain an o f f i c e i n Manhattan. lOHerrera, (1967), p. 147. As well, i t has been noted that "with very few exceptions, headquarter o f f i c e s are even more concentrated than other types of o f f i c e a c t i v i t y and generally begin to appear i n the suburbs only i n metropolitan areas with populations over 2 m i l l i o n . " (Regional Plan Association (1971), p. 10). from a study of o f f i c e r e - l o c a t i o n conducted i n London. H Problems of Off i c e Location Over 2000 d i f f e r e n t occupations l i s t the o f f i c e as the p r i n c i p l e place of work.12 These o f f i c e a c t i v i t i e s are not homogeneous i n t h e i r l o c a t i o n a l requirements: some require close contact with other firms, some are almost t o t a l l y independent, some are consumer-oriented, some provide services only to other firms, etc. Furthermore, even o f f i c e s engaged i n the same l i n e of a c t i v i t y are l i k e l y to have d i f f e r e n t l o c a t i o n a l requirements depending on t h e i r size and the number of in t e r n a l i z e d functions they carry out. C l a s s i f i c a t i o n thus poses a major problem. Off i c e location, however, has the added complication that i t i s exceedingly d i f f i c u l t to quantify the inputs and outputs of o f f i c e a c t i v i t i e s . The extent of the problem i s made clear when the c h a r a c t e r i s t i c s of o f f i c e output (and 13 inputs from other o f f i c e s ) are considered: •'••'•Cowan e t a l (1969) . As we l l , Hoover and Vernon have noted that additional costs for suburban locations (eg. employee parking l o t s , c afeterias and other amenities) tend to wipe out savings of lower land costs and rents. (1960, p. 99). 12propst (1968). 1 3Stanton (1967) . Adapted from Chapter 24: "Marketing of Services." 28 1. Intangible. The output of the o f f i c e i n many cases l i e s i n the form of potential rather than actual action. 2. Inseparable. O f f i c e output i n many cases cannot be separated from the person of the s e l l e r . That i s , the s e l l e r of the service i s part of the service. 3. Heterogeneous. There i s no standardized output among competitors or even from the same firm. 4. P e r i s h a b i l i t y and Fluctuating Demand. It i s impossible to anticipate demand for o f f i c e output and have a back-log inventory. If a single word were to be used to describe o f f i c e output i t would have to be uncertainty. Whereas, a manufacturing firm knows i t s production cost and s e l l i n g costs and can, by c a l c u l a t i n g i t s transportation costs, determine with some degree of exactness the amount of additional p r o f i t (or loss) to be obtained by re-loca t i n g , no such accounting system exists for the "producer" of o f f i c e services. Hoover and Vernon express t h i s same notion by stat i n g : "There i s no process of accounting \ that can weigh the enhancement i n the qu a l i t y of executive 1 decision-making i n a given location against the added / costs of operating i n that location."14 The presence of uncertainty does, however, influence the l o c a t i o n a l behaviour of o f f i c e a c t i v i t i e s : "Uncertainty aggravates the need for f a s t and frequent communication, both i n negotiating for transactions and i n keeping abreast of developments a f f e c t i n g themarket."15 uncertainty engenders c l u s t e r i n g , p a r t i c u l a r l y of a c t i v i t i e s that inter a c t with one another. Thus, differences i n the qua l i t y of decision-making, a l l other things being equal, i s l a r g e l y due to external factors such as convenience to outside sources of information and ease of access to suppliers or c l i e n t s . 2.2 S p a t i a l Structure and Functional Linkages The urban system may be viewed as one of i n t e r l o c k -ing and int e r a c t i n g objects. Linkages are the connections that complete the system: Linkages lead to the movement of persons and goods between linked establishments and generates a tendency on the part of establishments so related to seek proximate locations or locations that are mutually accessible.16 14Hoover and Vernon (1959), p. 97. 15 Robbins and Terleckyj (1960) , p. 33. 16Mitchell & Rapkin quoted i n Webber (1964), p. 149fn. 30 Linkages, therefore, involve "movement", linked e s t a b l i s h -ments" and "proximate locations." These terms are analogous to the terms s p a t i a l i n t e r a c t i o n , external economies and a c c e s s i b i l i t y as used i n t h i s study. A c c e s s i b i l i t y A c c e s s i b i l i t y has two d i f f e r e n t aspects. On the one hand, regional a c c e s s i b i l i t y provides an explanation for the existence of the CBD i n terms of c e n t r a l i t y and a c c e s s i b i l i t y to the largest possible market. On the other hand, i n t e r n a l a c c e s s i b i l i t y i s used i n the context of a small area such as the CBD. Over time, either through competitive s u r v i v a l or deliberate choice, a c t i v i t i e s i n these areas w i l l tend to locate so as to reduce uncertainty. Land values i n the CBD are among the highest anywhere: "a square foot of Central Houston costs up to $110; of Atlanta, $100; of Chicago $500; of San Francisco, $250; on Wall Street, $600, or $27 m i l l i o n an a c r e . " 1 7 Land values of up to $75 per square foot are found i n the Vancouver CBD. (see Table 4) The pr i c e of land, generally considered to be a measure of the i n t e n s i t y of demand and competition for land, varies with q u a l i t y and access. In general, studies have found a rent gradient exists with land i n the CBD being as much as 500 or more times as 1 7McQuade (1970), p. 132. TABLE 4 COMMERCIAL LAND VALUES IN THE DOWNTOWN PENINSULA - 1971 $/sq. f t . (Area bounded by Hastings-Robson-Seymour-Thurlow) Hastings and Pender Streets $35.00-55.00 Georgia $50.00-75.00 Robson $20.00-35.00 Burrard $50.00-65.00 Horby and Howe Streets $25.00-50.00 Georgia - West of Thurlow $25.00-30.00 Burrard - Smithe to Davie $15.00-20.00 Davie, Robson, Denman $15.00-30.00 Source: Real Estate Board of Greater Vancouver (1971). Real Estate  Trends i n Metropolitan Vancouver, 1971. p. C-14. expensive than land at the f r i n g e . 1 8 But a d d i t i o n a l l y , land values within the CBD varies considerably, often doubling from one block to the next. I t would be d i f f i c u l t to attempt to explain these differences i n terms of changes i n regional a c c e s s i b i l i t y or s i t e q u a l i t y alone. Land values within the CBD must also be influenced by i n t e r n a l a c c e s s i b i l i t y considerations. The a v a i l a b i l i t y of space, measured by either land supply or f l o o r area, at a p a r t i c u l a r l o c a t i o n i s l i m i t e d . Operation of market forces w i l l cause the b i d -price for more desirable s i t e s to be higher than those that are less d e s i r a b l e . 1 9 If the inherent q u a l i t i e s of land within the CBD are considered homogeneous, i t i s the s p a t i a l d i s t r i b u t i o n of economic a c t i v i t i e s that make some locations more desirable than others. External Economies The concept of external economies was introduced by A l f r e d Marshall as a counterpart to i n t e r n a l economies ( i . e . scale economies within an organization). External economies a r i s e out of "the growth of related branches of 1 8Hoch (1969), p. 132. I Q Lee for instance states: "If access were a major component and varied s i g n i f i c a n t l y with location, then competition would be keen for accessible s i t e s and these would be intensively used." (Lee and Yujnovsky (1971), p. industry which mutually a s s i s t one another, perhaps being 20 located i n the same l o c a l i t i e s . " (Marshall) A more t i e firm./ 21 rigorous d e f i n i t i o n i s as follows: External e f f e c t s are present whenever a firm production function depends i n some way on th  amounts of the inputs or outputs of another  An ex t e r n a l i t y can be said to be present when,^2 q A = q A (X x, X 2,...,x m,Y l ). The above equation states that the production function of a firm, A, i s dependent upon the " a c t i v i t i e s " , '(X^X^ * *. • r XRi) , that are exclusively under i t s control, but also upon another single a c t i v i t y , Y^, which i s by d e f i n i t i o n , under the control of a second firm, B, which i s presumed to be a member of the same economic group. In t h i s simple case, A*s production depends only on the a c t i v i t i e s of B. In the normal case, A's production function may include additional variables from other a c t i v i t i e s . Some examples of external economies are ti o n , the sharing of information and "know-how specializa-A ", the J 2 0Quoted by Thorngren (1967), p. 415. 2 l j . de V. Graaf c i t e d i n Buchanan and Stubblebine (1968), p. 415. 22 Buchanan and Stubblebine (1968) forms the basis for the remainder of t h i s paragraph. See p. 478 i n p a r t i c u l a r . presence of a s k i l l e d labour pool, public goods (eg. roads, ports), and shared usage of i n d i v i s a b l e resources (eg. 23 labour, transport services, s p e c i a l i z e d machinery.) By taking advantage of external economies, a firm can reduce i t s overhead costs, working s t a f f , space needs, working 24 c a p i t a l , and management problems. Capture of these external economies, however, usually requires that firms be i n proximity to one another external economies while being external to the firm are usually i n t e r a l to an area. External economies are p a r t i c u l a r l y important for those a c t i v i t i e s which t y p i c a l l y face a high degree of i n s t a b i l i t y or u n p r e d i c t a b i l i t y i n the demand for t h e i r products or services. The uncertainty and sporadicalness of demand makes i t d i f f i c u l t for a l l but the very largest of firms to i n t e r n a l i z e a l l of the function they carry out. As a generalization, the greater the number of a c t i v i t i e s i n a given area, the higher the p o s s i b i l i t y of external economies. Mathematically, i t can be shown that while the number of economic a c t i v i t i e s increases arithmeti c a l l y , the po t e n t i a l number of li n k s between pairs of economic a c t i v i t i e s increases at a geometric rate. If a system consists of two-way l i n k s , then the r e l a t i o n between 2 3 Y a v i t z and Stanback (1967) ?4 ^*Yavitz and Stanback (1967) , p. 13. number of nodes, N, and number of nodes, N, and number of 25 p o t e n t i a l l i n k s , L N , i s given by: thus, % = N(N-l) N 0 1 2 3 4 5 etc, V N=2 L N = 2 N=4 LN=12 The concentration of economic a c t i v i t i e s i n the CBD suggests that opportunities for linkage formation, and hence M M opportunities to take advantage of external economies, are greater than elsewhere i n the region. Spatial Interaction To use a phrase coined by Gottman, we l i v e i n a "transactional society" a society i n which i n t e r a c t i o n with s p e c i a l i s t s i s becoming part of the d a i l y decision-making process. 2^ Interaction may be either internal or external to the firm. The greater the reliance of a firm 2 5Cowan and Fine (1969), p. 236. 26Gottman (1966), p. 206. on i n t e r n a l i z e d functions the less r e s t r i c t e d i t i s i n i t s choice of locati o n . Conversely, i f a firm uses external sources to provide c e r t a i n functions, i t s l o c a t i o n a l freedom i s more li m i t e d . In his "Communications Theory of Urban Growth", M e i e r 2 7 places much stress upon the importance of face-to-face contact i n explaining the existence of urban centres. He argues that the subtleties of business transactions makes telecommunications a poor substitute for personal 2 8 contact. As we l l , empirical evidence of the importance of person-to-person contacts as a l o c a t i o n a l factor has 29 been uncovered i n surveys of o f f i c e s . See Appendix A for r e s u l t s of two surveys c a r r i e d out i n London. " M e i e r (1962) , p. 64. 28 Wise arrives at a si m i l a r conclusion. He speculates that any substitution that takes place w i l l be more than o f f s e t by an increased need for interaction. (Wise (1971), pp. 28^-29). 2 9Hawkes (1968), pp. 42-43, Tabor (1969), p. 5, Cowan et a l (1969) . In two of the studies c a r r i e d out i n central London, the p r i n c i p l e factor governing the choice of location was found to be "contact with external organiza-tions" and"proximity to c l i e n t s " respectively. Another finding of i n t e r e s t was that of 144 central firms expressing an intent to seek a suburban location, only 12 f i n a l l y d i d so. The chief reason given for remaining was "fear of loss of contact with other firms and organizations" (62%). Another study car r i e d out i n Leeds disclosed that 97% of a l l firms there used personal meeting as t h e i r main method of contact-ing customers and c l i e n t s . 37 Additional evidence of the importance of micro-l e v e l l o cation i s provided by Goddard i n a recently reported 3 n study conducted with Central London o f f i c e s : Approximately one-third of the meetings took place outside the respondents' place of work and therefore involved t r a v e l . One-third of these business t r i p s were on foot and took less than 10 minutes. The r e s u l t i s generally consistent with the hypothesis of the present study and tends to confirm the importance of i n t e r a c t i o n as a l o c a t i o n a l factor. 2.3 O f f i c e Location Patterns I t has been contended that patterns of o f f i c e location w i l l be formed as a r e s u l t of i n t e r n a l a c c e s s i b i l i t y , external economies and s p a t i a l i n t e r a c t i o n . This section of the Chapter w i l l b r i e f l y discuss the various types of l o c a t i o n a l patterns that e x i s t i n the CBD. Simmons has i d e n t i f i e d f i v e "biases" which e f f e c t i n t e r a c t i o n (and hence the location and s p a t i a l pattern) of economic a c t i v i t i e s within the urban area i n a systematic way:31 1. Distance P r o b a b i l i t y of i n t e r a c t i o n declines with distance or some surrogate such as cost, time or intervening 30Qoddard (1971), p. 270. 31simmons (1968) develops these "biases" i n the form of various "flow matrices" of s p a t i a l i n t e r a c t i o n . 38 opportunities. 2. Reciprocity An i n t e r a c t i o n i n one d i r e c t i o n between two points modifies the l i k e l i h o o d of i n t e r a c t i o n i n the reverse d i r e c t i o n . This c h a r a c t e r i s t i c i s inherent i n a distance model i f the distance measure i s symmetrical. 3. Island E f f e c t Subsets may ex i s t among the states such that i n t e r a c t i o n among members of the subset i s increased and i n t e r a c t i o n across the boundaries of the subset i s decreased. 4. Overlapping Acquaintanceship Some states belonging to more than one subset act as transfer points, channelling a l l i n t e r a c t i o n between two subsets. 5. Force F i e l d Locations have increased l i k e l i h o o d of being s t a r t i n g points or end points of flows due to c e r t a i n properties eg. population s i z e , economic a c t i v i t y . 39 These biases r e s u l t i n the following sorts of lo c a t i o n a l patterns emerging: 1. The distance and r e c i p r o c i t y biases w i l l r e s u l t i n the proximate location of interdependent o f f i c e types (Fig. 1). 2 . The is l a n d e f f e c t bias w i l l r e s u l t i n the i d e n t i f i -cation of groups of o f f i c e types that tend to locate together (Fig. 2 ) . 3. The overlapping acquaintanceship bias w i l l r e s u l t i n i d e n t i f i c a t i o n of o f f i c e types which are common to more than a single group (Fig. 3). 4. The force f i e l d bias w i l l r e s u l t i n nodes around which groups of o f f i c e types tend to be centered (Fig. 4 ) . I t i s , however, not expected that the patterns of o f f i c e location w i l l be clear-cut. The correspondence between form and process i s imperfect because of the existence of a number of s p a t i a l i n e f f i c i e n c i e s . S p a t i a l i n e f f i c i e n c i e s a r i s e for a vari e t y of reasons including the following: 1. Structural Constraints The free adjustment of an a c t i v i t y ' s location i s 1. D i s t a n c e and R e c i p r o c i t y Biases' 40 CD C - A - B Linked Off i c e s 2 . I s l a n d E f f e c t B i a s C D O Areas of Linked Of f i c e s 3. O v e r l a p p i n g A c q u a i n t a n c e s h i p B i a s S2 ^ Overlapping Areas of Linked Off i c e s 4. Force F i e l d B i a s £ 4 Linked O f f i c e s Centred on a Node L e t t e r s (eg. A,B,C, e t c . ) denote types o f o f f i c e s . 41 constrained by the a v a i l a b i l i t y of space. The loc a t i o n a l preferences of some a c t i v i t i e s may therefore not be met. The structures themselves, because of t h e i r semi-permanence, r e f l e c t s decisions made i n the past. In short, the present location, a v a i l a b i l i t y , and cost of space i n structures does not necessarily r e f l e c t the actual l o c a t i o n a l preferences of t h e i r occupants. 2. Lack of Sp a t i a l Mobility Anomalies of location w i l l also a r i s e because of the unwillingness of some a c t i v i t i e s to respond to market forces. Certain a c t i v i t i e s seem t i e d to p a r t i c u l a r locations because of h i s t o r i c a l , prestige, or goodwill reasons rather than for any lo c a t i o n a l advantages. This i n e r t i a i s reinforced by the conservativeness of many firms. 3. Long-term Contractual Commitments Di s t o r t i o n of the l o c a t i o n a l patterns of a c t i v i t i e s may also r e s u l t from long-term lease agreements. As well, re-location often involves considerable monetary expenditures and other disruptive e f f e c t s . 4. I n s t i t u t i o n a l Restrictions Zoning and other building regulations may prevent 4 2 the construction of structures at locations at which they are desired. 5 . The Location Decision Most decisions of location are made on the basis of imperfect knowledge. And even when a l l the available information i s taken into account, some compromises have to be made since no single location i s l i k e l y to provide a l l the services necessary. X X X This chapter has attempted to provide a focus for the remainder of the study. In the f i r s t section, i t was indicated that o f f i c e a c t i v i t i e s , unlike many other types of a c t i v i t i e s once housed i n the CBD, have shown l i t t l e tendency to suburbanize. In the second section, i t was argued that the interdependencies that e x i s t between o f f i c e s are of such importance that they outweigh any advantages offered by suburban l o c a t i o n . Moreover, the capture of external economies r e s u l t s i n the formation of patterns of o f f i c e location within the CBD. I t was the patterning of o f f i c e locations which has been the subject of the f i n a l section. Although imperfections i n the rationing of o f f i c e accommodation exi s t i . e . there i s a lag between form and function nevertheless, there should be tendencies for patterns of o f f i c e l o c ation to emerge. In the case study of the Vancouver CBD that follows, i t i s hoped through the use of various multivariate s t a t i s t i c a l techniques to uncover these s p a t i a l patterns of lo c a t i o n . CHAPTER III OFFICE LOCATION PATTERNS: A MULTIVARIATE APPROACH 3.1 Data Preparation 3.2 Multivariate Analysis of CBD Offices 3.3 Summary of Methodology CHAPTER III OFFICE LOCATION PATTERNS: A MULTIVARIATE APPROACH Introduction E a r l i e r chapters have indicated why patterns of o f f i c e location should e x i s t , and the form these patterns should take. The present chapter describes the methodology undertaken to empirically uncover the presence of o f f i c e location patterns i n the Vancouver CBD. To recapitulate, the underlying premise on which the testable hypotheses of the study were based was that the functional interdependencies or linkages that e x i s t between o f f i c e s would emerge as s p a t i a l patterns of lo c a t i o n . Although some o f f i c e sub-areas could possibly be i d e n t i f i e d by rather simple univariate techniques (eg. d i r e c t mapping), other studies have shown t h i s approach to be generally inadequate to uncover more complex i n t e r - r e l a t i o n s h i p s . A multivariate approach*, by contrast, can take into better account the s p a t i a l i n t e r - r e l a t i o n s h i p s and differences that e x i s t between o f f i c e s . Functional relationships could then be infer r e d from the i d e n t i f i c a t i o n of the s p a t i a l r e l a t i o n s h i p s . *The analysis was carr i e d out using the IBM 360 Series computer f a c i l i t i e s at the University of B r i t i s h Columbia. In p a r t i c u l a r , use was made of a number of package programmes: SPSS ( S t a t i s t i c a l Package for the Soci a l Sciences), *FACTO (Factor a n a l y s i s ) , and *CGROUP (Hierarchical grouping). In addition, some programming was done by the writer i n transforming the data to i t s f i n a l form. 3.1 Data Preparation 45 Preliminary to proceeding with the s t a t i s t i c a l a nalysis, i t was necessary to manipulate the data to make i t conform with the hypotheses being tested and the input / requirements of the various s t a & s t i c a l techniques. Only an outline of the methodology used i n preparing the data i s provided here. However, because i t i s ce r t a i n that the steps taken at t h i s point have an influence on the re s u l t s of the subsequent analyses, the detailed mechanics have been incorporated i n various appendices. Data The data u t i l i z e d i n t h i s case study owes i t s origins to a land use survey conducted by the City Planning Department i n the early part of 1969. Through t h i s survey i t was possible to i d e n t i f y the type (by 3-digit Standard Ind u s t r i a l C l a s s i f i c a t i o n (S.I.C.) number), location (a coordinate system was used), and siz e (square footage by floor) of a l l establishments i n the Downtown Vancouver Peninsula and adjacent commercial areas.* Some technical notes about the data have been included i n Appendices B and C. Appendix B deals with the format and input medium of the data, while Appendix C describes the coordinate system used i n Vancouver to indicate address or locatio n . Delimiting of the Vancouver CBD A review of recent reports issued by the City Planning Department f a i l e d to uncover an o f f i c i a l l y sanc-tioned d e f i n i t i o n of the Vancouver CBD. Though many references were made to the Vancouver CBD, there was a singular lack of consistency i n i t s delimitation* I t was, therefore, decided to del i m i t the CBD using more rigorous c r i t e r i a . This was done by using a modification of a technique developed by Murphy and Vance. 1 Appendix D discusses t h i s technique and the method i n which i t was adapted for t h i s study. Map 2 indicates the boundaries of the Vancouver CBD i n 1969 as determined by the use of th i s technique. The j u s t i f i c a t i o n for l i m i t i n g t h i s study to the CBD i s rather obvious. The CBD i s generally acknowledged as representing the highest l e v e l of the urban h i e r a r c h y — i t has the greatest number of establishments, the greatest d i v e r s i t y of a c t i v i t i e s , the highest land values, etc. of any area i n the metropolitan region. Thus, any patterning of o f f i c e s that e x i s t should be most e a s i l y evidenced i n the CBD. Moreover, Murphy and Vance state " . . . i t i s only through the use of a standardized method of delineation that s i g n i f i c a n t comparisons of CBD's are p o s s i b l e . " 2 Murphy and Vance (1967), pp. 187-220. 2Murphy and Vance (1967), p. 188. D e f i n i t i o n of Offices 48 To d i f f e r e n t i a t e between o f f i c e a c t i v i t i e s and other a c t i v i t i e s on the basis of S.I.C. numbers, i n many cases, proved exceedingly d i f f i c u l t . Commenting on the d i f f i c u l t y of using S.T.C. 3 coding i n determining CBD land use, Larry Smith has written: The very useful Standard In d u s t r i a l C l a s s i f i c a t i o n Manual has been widely used i n studying the functions of the CBD, but i t s organization by industries instead of by function makes i t cumbersome. Within c e r t a i n i n d u s t r i a l c l a s s i f i c a t i o n s i t may l i s t functions such as headquarter o f f i c e s not r e a d i l y i d e n t i f i e d as CBD functions; whereas, other functions, such as parking, are not segregated for study to the extent necessary for ready reference. A few examples are c i t e d to i l l u s t r a t e t h i s . MacMillan Bloedel Co. Ltd., a large forest products firm i n B r i t i s h Columbia, i s c l a s s i f i e d by the S.T.C. code as 241 "Logging Camps & Logging Contractors". A person unfamiliar with the economy of B r i t i s h Columbia may not include t h i s as an o f f i c e . In other instances, there i s an overlap between o f f i c e functions and other a c t i v i t i e s . Wholesalers,- for example, may operate from either a warehouse or an o f f i c e b u ilding. The differences i n place of operation are not, however, distinguishable using S.I.C. numbers. Furthermore, 3Smith (1961), p. 354. 4 9 any d e f i n i t i o n of o f f i c e s i s bound to contain elements of a r b i t r a r i n e s s . A bank, for example, i s t y p i c a l l y thought to be an office-type a c t i v i t y yet from the point of view of the average customer, the services i t performs are c l o s e l y akin to the services provided by a r e t a i l a c t i v i t y such as a t r a v e l agent. To "draw the l i n e " i s no easy task. A three-step procedure was used i n determining o f f i c e establishments i n the CBD. F i r s t , the d e f i n i t i o n of o f f i c e s by S.I.C. numbers developed by the City Planning Department following completion of the survey from which that data for t h i s study was obtained was considered a f i r s t approximation. Second, the d e f i n i t i o n was enlarged using c r i t e r i a of s i z e , f l o o r and lo c a t i o n . L a s t l y , i n cases where doubt s t i l l persisted, the areas were v i s i t e d . The S.I.C. numbers which appeared to represent o f f i c e establishments were then categorized into classes of o f f i c e s which performed si m i l a r functions. Further d e t a i l s on t h i s procedure are found i n Appendix E. The c l a s s i f i c a t i o n of o f f i c e s u t i l i z e d , and the S.I.C. numbers comprising them, are shown i n Table 5. The Areal D i s t r i b u t i o n of Offices To o f f s e t , to some extent, the differences that existed i n the size of area! measure ( i . e . the f l o o r area of o f f i c e space i n each block-front) i t was decided to 5 0 TABLE 5 CLASSIFICATION OF OFFICES Variable No. General Type of and Name American S.I.C. Nos. Included* . Activities. 1. AGRIC 11,13,71,73 Agriculture 2. FOREST 85,86,89 Forestry 3. FISH 98 Fisheries 4. MINING 101,102,104,106 ,108, 109 Metal Mining 5. PETRO 131,138 Petroleum 6. QUARRY 141,142,148,149 Quarrying 7. GENCONTR 151 General Contracting 8. SPECCONT 173,179 Special Trade Contractors 9. FOOD 204,208,209 Food Manufacturing 10. TEXTILE 225,229 Textile Manufacturing 11. CLOTH 231,233,238,239 Apparel Manufacturing 12. LUMBER 241,242,249 Lumber & Wood Products 13. PAPER 262,264 Paper Products 14. PRINT 271,274,275,279 Printing & Publishing 15. ELMACH . 366,369 Elec t r i c a l Machinery 16. PROFEQ 384,387 Professional Equipment 17. MANUF 391,396 Novelty Manufacturing 18l MISCMAN 399 Miscellaneous Manufacturing 19. TRANSP 401,404 Railroad Transportation 20. WATERTR 441,445,446 Water Transportation 21. TRSERV 471,472 Transportation Services 22. COMM 481,482,483,489 Communications 23. UTILITY 492,493,495 U t i l i t y Services 24. WHOLESL 502,503,504,505 ,506, 507,508?509 wholesale Trade 25. BANKING 602,605,609 Banking 26. CREDIT 611,614,615,616,619 Credit Agencies 27. SECURITY 621,623,628,629 Security 28. INSUR 631,632,636 Insurance Carriers 29. MISCINS 641,649 Insurance Agents 30, REALEST 651,653,655,659,661 Real Estate 31. HOLDCO 671,672,679 Holding Companies 32. ADVERT 731 Advertising 33. MISCBS 732,733,734,735 ,736, 739 Misc. Business Services 34. MEDICAL 801,802,803,804 ,807, 809 Medical Services 35. LEGAL 811 Legal Services 36. EDUC 829 Educational Services 37. NPORG 861,862,863,864 ,865, 866,867,869 Non-Profit Organizations 38. ENGINEER 891 Engineering 39. ACCT 893 Accounting 40. GOVT 910,920,930 Canadian Government 41. INTGOVT 940 International Government *See Appendix F for interpretation of S.I.C. numbers. 51 express the d i s t r i b u t i o n of o f f i c e s i n terms of percentages.* To take into account aspects of both size and frequency with which o f f i c e s were d i s t r i b u t e d a "weighted" percentage d i s t r i b u t i o n was u t i l i z e d . The method that was used i s discussed i n Appendix G. As a f i n a l step i n the preparation of the data for multivariate analysis, the data was normalized by an arc sine square root transformation. The motive for doing so and the procedure used i s discussed i n Appendix H. 3.2 Multivariate Analysis of CBD Offices Having delimited the boundaries of the CBD, defined o f f i c e establishments and transformed the data into usable form, i t i s now possible to proceed with the main analysis. S p e c i f i c a l l y , the transformed data i s used as the input for a factor analysis and a grouping analysis. Before proceeding, a few words of caution need be expressed. The r e s u l t s emerging from t h i s case study cannot be regarded as conclusive evidence that a causal r e l a t i o n -ship e x i s t s . At best they represent an i n d i r e c t v a l i d a t i o n of the hypothesis. The three testable hypotheses formulated while being consistent with the general hypothesis do not exhaust the realm of possible explanations for t h i s pheno-menon. In other words, additional factors not taken into account i n t h i s study may be underlying the patterns of CBD o f f i c e l o c a t i o n . *An obvious weakness exists i n t h i s approach: The greater the f l o o r area i n a p a r t i c u l a r block the more hete-rogeneous the composition of o f f i c e s i s l i k e l y to be. 52 Two analytic techniques were used i n t h i s study. Factor analysis was c a r r i e d out to reduce the dimensionality of the variables into fewer composite variables. Second, a grouping analysis was applied to the r e s u l t s of the factor analysis. A b r i e f description of these techniques and t h e i r application i n t h i s study follows. Factor Analysis A prime motive for proceeding with a factor analysis i s because of data-reducing c a p a b i l i t i e s of t h i s technique. Factor analytic techniques reduce the dimensionality of the o r i g i n a l set of variables on the basis of the i n t e r c o r r e l a -tions that e x i s t i n the data. B a s i c a l l y , factor analysis eliminates a l l redundent factors within a set of variables and generates an underlying set of orthogonal ( i . e . uncorre-c t e d or independent) factors or composite varia b l e s . A v a r i e t y of related mathematical procedures comes under the generic t i t l e of factor analysis. A commonly used variant known as p r i n c i p a l components analysis i s the method employed i n t h i s study. Without delving into the mathematical aspects of t h i s technique^, what p r i n c i p a l components analysis does For a more r i g o r o u s , yet e a s i l y understood, d e s c r i p t i o n of f a c t o r a n a l y t i c techniques, the reader i s r e f e r r e d t o Rummell (1967). i s f i r s t s e l e c t the l i n e a r combination of variables that best accounts for the variance i n the data as a whole. A second factor i s then defined from the residual variance using the c r i t e r i a (1) i t i s the next "best" l i n e a r combination of variables and (2) the second factor i s orthogonal to the f i r s t . In a sim i l a r fashion a t h i r d and subsequent factors are extracted u n t i l the residual variance becomes zero. In general, with p r i n c i p a l components analysis the number of factors equals the number of the o r i g i n a l set of variab l e s . The amount of t o t a l variance accounted for by a factor i s indicated by a number c a l l e d an eigenvalue. A standard c r i t e r i o n for determining the number of factors to r e t a i n for subsequent analysis i s an eigenvalue of 1.0 that i s , only those factors accounting for at l e a s t the amount of average variance of a variable are treated as s i g n i f i c a n t . P r i n c i p a l components analysis therefore was used i n t h i s study to reduce the number of o f f i c e classes to a smaller set of factors. The factors are comprised of groups of o f f i c e s that are associated with one another-— i n t h i s case, s p a t i a l l y associated or found i n the same block-fronts. By examining the classes of o f f i c e s which load highly on a factor, inferences may be made about the existence of o f f i c e linkages. 54 A fundamental assumption often v i o l a t e d i n applying multivariate s t a t i s t i c a l techniques to areal data concerns the independence of each observation of a v a r i a b l e . This i s known as autocorrelation. Each of the block-fronts used as a measure of areal data i s not independent of adjacent block-fronts. However, no s a t i s f a c t o r y method exists for correcting t h i s problem.^ Grouping Analysis The r e s u l t s of the factor analysis were used as the inputs into a grouping analysis. Grouping was done on the basis of p r o f i l e s i m i l a r i t y , i . e . s i m i l a r i t y of scores on each subject. The c r i t e r i a used i n forming groups i s to minimize within group v a r i a t i o n . In an i t e r a t i v e "tree-ing" process, pairs of groups are progress-i v e l y combined u n t i l a single group containing a l l of the o r i g i n a l subjects r e s u l t s . At each step of the grouping an error term i s given. By viewing the increments of the error term i t i s usually possible to i d e n t i f y a point at which a natural number of groups i s indicated by a substan-t i a l increase i n the error term ( i . e . combining of two d i s s i m i l a r groups). The input to the grouping programme was the standardized factor scores on each block-front. Block-fronts which have high factor scores are locations Cherukupalle (n.d.), p. 27. at which grouping of o f f i c e s are most pronounced. Grouping analysis was attempted on two l e v e l s . F i r s t , grouping was done on single factors. I t was expected that t h i s would r e s u l t i n i d e n t i f i c a t i o n of o f f i c e sub-areas within the CBD. A second grouping was done on the combined p r o f i l e of a l l s i g n i f i c a n t f a c t ors. This was intended to indicate the extent to which o f f i c e groups were integrated with one another. The re s u l t s of the two sets of grouping analyses were then plotted on maps to see i f s p a t i a l patterns of o f f i c e l o cation could be i d e n t i f i e d . 3.3 Summary of Methodology The preceding methodology i s easiest summarized by a flow diagram. This i s shown i n Figure 5. In the following chapter, results of the analyses are given. 56 FIGURE 5 Flowchart of Methodology Data Delimiting of CBD S3 o H EH < CM w Pi CM >< EH •< Q Defining of Of f i c e Establish-ments (variables) Defining of Areal Unit of Observation (subjects) Conversion to Percentage .—v-Data Transformation to Normalize u CO H H EH co co >n H i-3 E j < EH <: CO Factor Analysis Grouping Analysis D co Interpretation of Results —* » I Conclusions CHAPTER IV OFFICE LOCATION PATTERNS IN THE VANCOUVER CBD 4.1 Preliminary Results 4.2 Interpretation of the Factor Structure 4.3 I d e n t i f i c a t i o n of Off i c e Groups i n the CBD 4.4 Grouping Analysis - I 4.5 Delineation of Sub-areas i n the CBD 4.6 Grouping Analysis - II 4.7 Complex Factors 4.8 Office Area Relationship CHAPTER IV OFFICE LOCATION PATTERNS IN THE VANCOUVER CBD Results of the factor and grouping analyses undertaken to discover s p a t i a l patterns of o f f i c e location i n the Vancouver CBD are reported i n t h i s chapter. The analyses sought to v e r i f y that (1) there would be groups of o f f i c e s that showed tendencies to locate i n proximity to one another (Hypothesis 1); (2) groups of o f f i c e s that were s p a t i a l l y located tended to form i d e n t i f i a b l e sub-areas within the CBD (Hypothesis 2); and (3) there i s a functional j u s t i f i c a t i o n for the r e l a t i v e location of o f f i c e areas i n the CBD (Hypothesis 3). 4 .1 Preliminary Results An intermediate step i n the factor analysis procedure involves c a l c u l a t i o n of a c o r r e l a t i o n matrix. This matrix correlates the degree of association or relati o n s h i p between pairs of variab l e s . With 41 variables there are 820 possible pairs of d i f f e r e n t variables, 105 of which proved to be s i g n i f i c a n t at the 0.05 c r i t e r i o n l e v e l . The res u l t s are displayed i n Table 6. The co r r e l a t i o n matrix was considered i n conjunction with the interpretation of each of the factors. The correlations observed are s t r i c t l y an in d i c a t i o n of s p a t i a l association within the areal unit 5 8 TABLE 6 SIGNIFICANT INTERCORRELATIONS FOR EACH VARIABLE (0.05 Level of Significance) VARIABLES 1. AGRIC 65(6) 41(32) 28(11) 24(35) 2. FOREST 34(12) 24(20) 24(38) 3. FISH 59(41) 4. MINING 43(27) 35 (21) 34(26) 30(39) 5. PETRO 52(39) 41(32) 31(9) 25(15) 6. QUARRY 42(19) 31(35) 31(32) 28(10) 7. GENCONTR 49(28) 37(33) 29(15) 28(39) 8. SPECCONT 28(27) 9. FOOD 59(15) 49 (39) 45(33) 40(10) 29(40) 27(17) 25(36) 10. TEXTILE 57(20) 49(28) 45(15) 26(18) 11. CLOTH 41(17) 29(16) 29(24) 26(36) 12. LUMBER 72 (15) 59(20) 53(19) 37(27) 13. PAPER 25 (41) 24(32) 14. PRINT 51(36) 15. ELMACH 57(20) 41(39) 38(19). 35(27) 16. PROFEQ 27(34) 25(41) 25(17) 17. MANUF 35(34) 31(33) 27(24) 18. MISCMAN •27(27) 19. TRANSP 38(35) 35(27) 35(41) 35(20) 20. WATERTR 41(27) 24(28) 24(21) 21. TRSERV 31(31) 22. COMM -27(24) -27(33) 25. BANKING 34(31) 26. CREDIT 32(30) 26(35) 27. SECURITY 35(30) 30. REALEST 30(31) -28(37) 32. ADVERT 52(39) 39(33) 39(35) 25(38) 33. MISBS 50(39) 29(35) 29(40) 24(38) 34. MEDICAL 37(35) 25(37) 35. LEGAL 34(39) 28(41) 3 6 . EDUC 25(39) 38. ENGINEER 34(39) 25(40) 3 9 . ACCT 27(40) 25(6) 25(38) 24(30) 39(20) 35(19) 33(35) 31(32) 34(38) 29(32) 26(18) 30(39) 24(33) Only correlations (from the upper triangle of a correlation matrix) above 0.240 are included and the decimal point has been dropped. Brackets contain variable numbers li s t e d in descending order of significance. 59 (facing block-fronts) and therefore can be presumed to underestimate the actual degree of association. O f f i c e establishments undoubtedly have linkages with other firms outside of the areal u n i t . Sixteen factors with eigenvalues of greater than 1.0 resulted from the p r i n c i p a l components analysis. Together they account for s l i g h t l y more than 75% of the variance-covariance structure of the o r i g i n a l v a r i a b l e s . The remaining 25 factors have less than average explanatory c a p a b i l i t i e s . The general meaning of 16 extracted factors i s that the interrelatedness of the 41 classes of o f f i c e s previously defined can be reduced to 16 underlying common dimensions or o f f i c e groups, which account for approximately three-quarters of CBD o f f i c e l o c a t i o n . To further simplify the factor structures, a varimax r o t a t i o n of the i n i t i a l factor solution was spe c i f i e d . The rel a t i o n s h i p between each of the sixteen factors and the variables i s shown i n Table 7. The meaning of the factors are interpreted i n the following section. 4.2 Interpretation of the Factor Structure Classes of o f f i c e s which load highly on a factor describe common patterns of s p a t i a l association groups of o f f i c e s that are t y p i c a l l y found together. Table 7 60 TABLE 7 FACTOR LOADING ON 41 OFFICE CLASSES (VARIMAX ROTATED) •><. v FACTORS y VARIABLES I II III IV v VI VII VIII IX X XI XII XIII XIV XV XVI 1. AGRIC * * +93 * :• * * * * * * * * * * * * 2 . FOREST * -55 * * * * * * * * * * * * * * :3. FISH * * * * * +80 * * * * * * * * * * 4 . MINING : * * * * * * * * * * ; * -79 * * * 5 . PETRO +57 * * * * * * * * * * * * * * -40 6 . QUARRY * * +83 * * * * * * * * * * * * * 7. GENCONTR * * * * * * +48 * -41 * * * * * * * 8. SPECCONT * * * * +70 * * * * * * * * * * * 9. FOOD +61 * * * * * * * * * * * * * * * 10. TEXTILE * * * * * * +81 * * * * * * * * * 11 . CLOTH * * * * * * * * * * * +80 * * * * 12. LUMBER * -89 * * * * * * * * * * * * * * 13. PAPER * * * * * * * * * * +91 * * * * * 14. PRINT * * * * * * * * * +83 * * * * * * 15. ELMACH +44 -71 * * * * * * * * * * * * * * 16. PROFEQ * * * * * * * * * * * +68 * * * * 17. MANUF * * * +50 * * * * * * * +40 * * * * 18. MISCMAN * * * * * * * * * * * * * * * -78 19. TRANSP * -50 * * * * * * * * * * * * * 20. WATERTR * -65 * * * * +44 * * :• * * * * * * * 2 1 . TRSERV * * * * * * * * * * * * -43 -43 * * 22. COMM * * * * -^ 45 * * * +40 * * * * -42 * * 23 . UTILITY * * * * * * * * * * * * * * -81 * 24. WHOLESL * * * * * * * * * * * * * +81 . * * 25. BANKING * * . * * * * * -78 * * * * * * * * 26. CREDIT * * * * * * * * * * * * -54 * * * 27. SECURITY * -44 * * * * * * * * * * -44 * * * 28 . INSUR * * * * * * +82 * * * * * * * * * 29. MISINS * * * * * * :• * * -73 * * * * * * * 30. REALEST * * * : * * * * * * * * * -47 * * * 31 . HOLDCO * * * * * * * -69 * * * * * • * * * 32. ADVERT +64 * +45 * * * * * * * * :• * • * * * * 33. MISCBS +64 * * * * * * * * * * * * * * * 34. MEDICAL * * * +81 * * * * * * * * * * * * 35. LEGAL * * * +44 * * * * * * * * * * * * 36. EDUC * * * * * * * * * +84 * * * * * * 37. NPGRG * * * +40 +52 * * * * * * * * * * * 38. ENGINEER +53 . * * * * * * * * * * * * * * * 39. ACCT +79 * * * * * * * * * * * * * * 40. GOVT +61 * * * * * * * * * * * * * * * 4 1 . INTGOVT . * * . * * +86 * * * * * * * * * Only l o a d i n g s above 0.400 have been i n c l u d e d . The dec ima l has been dropped. 61 indicates that the 16 s i g n i f i c a n t factors d i f f e r markedly i n t h e i r degree of complexity. Some are single variable factors which would tend to indicate that they have few linkages with other CBD o f f i c e s / while others are comprised of several high loading variables which indicates that they haveslmilar l o c a t i o n a l preferences and could be regarded as s p a t i a l l y - l i n k e d . For the int e r p r e t a t i o n of the factors only the highest factor loading on each variable has been considered. That i s , each of the 41 variables ( o f f i c e classes) i s considered a member of only a single factor ( o f f i c e group). Off i c e classes which load highly on more than a single factor are considered at a l a t e r point i n t h i s chapter. In F i g . 6, each of the 41 o f f i c e classes has been grouped by the factor on which i t loads most highly and the s i g n i f i c a n t p o s i t i v e correlations bonds between pairs of a c t i v i t i e s drawn i n . This diagram i l l u s t r a t e s the complex manner i n which o f f i c e classes are s p a t i a l l y - l i n k e d . As well, i t indicates that two types of bondings e x i s t to li n k o f f i c e classes. The within-group bonds (between members of a factor) show that o f f i c e s grouped together usually have strong i n t e r n a l bondings ( i . e . they are s t a t i s t i c a l l y associated with each other). A second type of bonding, between-group bonds, i s also evident. These are indicated by s i g n i f i c a n t correlations between o f f i c e s 62 0_ UJ o Lu o 1. AGRIC 12. LUMBER 22. COMM 32. ADVERT 2. FOREST 13. PAPER 23. UTILITY 33. MISCBS 3. FISH 14. PRINT 24. h'HOLESL 34. MEDICAL 4. MINING 15. ELM AO! 25. BANKING 35. LEGAL 5. PETRO 16. PROFEQ 26. CREDIT 36. "EDUC 6 . QUARRY 17. MANUF 27. SECURITY -37. NPORG 7. GENCONTR 18. MI SOMAN 2'8. .INSUR 38. ENGINEER 8. SPECCONT 19. T:;ANSP 29. MISCINS 39. ACCT 9 . FOOD 20. WATERTR 30. REALEST 40. GOVT 10. TEXTILE 21. TRSERV 31. HOLDCO 41. INTGOVT 11. CLOTH VI/ (41 391 f 3 8 IX ( (29) ! 1 5 . XIV! 'Mi 35 IS 6 SIGNIFICANT \\*3) CORRELATE CORRELATIONS BETWEEN OFFICE TYPES SION I F I.CANT AT 0 .1) 5 LEVEL ON belonging to d i f f e r e n t groups of o f f i c e s . Because of the large number of o f f i c e establishments and the limited numbers of possible locations for these establishments, undoubtedly some spurious correlations have arisen. In majority of the cases, however, the spatial associations would appear to have some functional s i g n i f i c a n c e . I n t u i t i v e l y , at l e a s t , they seem to make sense. Single-Office Groups In the case of factors comprised of only a single high loading class of o f f i c e s , there i s obviously no within group bonds. Moreover, the s i n g l e - o f f i c e groups generally show few s i g n i f i c a n t correlations with other o f f i c e s . I t therefore makes very l i t t l e sense to in t e r p r e t these factors except to note that generally o f f i c e s i n t h i s category appear to be l o c a t i o n a l l y independent-—they show no obvious preference for locations i n the CBD. In some cases, the lack of s i g n i f i c a n t correlations arises because of the unit of areal measurement being used. Some types of a c t i v i t i e s are found i n o f f i c e buildings i n which the sole occupant i s a single firm. In other cases, single o f f i c e -groups probably ari s e because these types of o f f i c e s do not have any s i g n i f i c a n t functional relationships with other o f f i c e s either because they serve a great va r i e t y of d i f f e r ent c l i e n t e l e and have no p a r t i c u l a r l o c a t i o n a l preference, 64 or a l t e r n a t i v e l y , because they i n fac t do not have any need to come into contact with other o f f i c e s and are l o c a t i o n a l l y "footloose." Since the study i s primarily intended to discover patterns of o f f i c e l o c a t i o n , i t was decided to ignore o f f i c e s showing no apparent l o c a t i o n a l preferences. Consequently, Factors IX, XI, XIV, XV, and XVI have been ignored i n the subsequent analyses. As well, Factor V was also ignored though i t was comprised of 3 o f f i c e classes. The members of t h i s group of o f f i c e s , however, showed no s i g n i f i c a n t correlations with each other. In the following section, the remaining factors are interpreted one at a time to i s o l a t e the common elements shared by each group of o f f i c e s . Of p r i n c i p l e concern i n the i n t e r p r e t a t i o n of each factor are the within-group bonds. The significance of the between-group bonds i s l e f t to a la t e r stage of t h i s study. Structure of the Remaining Factors 1. Factor I i s a Headquarter, Government & Professional Business Services 1 Group. The p r i n c i p l e classes of o f f i c e s comprising t h i s factor are petroleum-based firms (PETRO), food manufacturers (FOOD), advertising agencies (ADVERT), miscellaneous business services (MISCBS), engineering consultants (ENGINEER), accounting firms (ACCT), and government (GOVT). E l e c t r i c a l machinery manufacturers (ELMACH) also loads r e l a t i v e l y highly on t h i s factor. Most of the o f f i c e s i n t h i s group are highly correlated with one another. However, i n contrast to the other o f f i c e s i n t h i s group, neither petroleum-based firms nor government o f f i c e s show many between-group bonds. The few linkages that petroleum-offices and government o f f i c e s have i s i n d i c a t i v e of the f a c t that (1) they are r e l a t i v e l y few i n number, (2) many of t h e i r functions are i n t e r n a l i z e d , and, (3) they often own the buildings which they occupy. These o f f i c e s may therefore be considered the stimulus for the other members of t h i s group. This i s further substantiated by the lack of a s i g n i f i c a n t association between petroleum o f f i c e s and government o f f i c e s . I n t u i t i v e l y , one might expect the remaining o f f i c e s to have functional relationships with a great v a r i e t y of d i f f e r e n t o f f i c e s since they provide many highly spec i a l i z e d services. Viewed i n t h i s context, i t becomes obvious that\ t h i s factor represents an amalgam of Headquarter'! Government and Professional Business Services. 1 66 2. Factor II i s a Forest-Industry Group. The group of o f f i c e s comprising t h i s factor are: forestry firms (FOREST), lumber products (LUMBER), E l e c t r i c a l machinery manufacturers (ELMACH), railway transportation (TRANSP), and water transportation (WATERTR). As well, t h i s factor shares a high loading on security firms (SECURITY) with Factor XIII. Although the classes of o f f i c e s comprising, t h i s factor show many within-group bonds, a l l of the variables with the exception of forestry and lumbering product firms have numerous s i g n i f i c a n t between-group bonds as we l l . I t i s the presence of the forest-oriented a c t i v i t i e s which i s the c a t a l y s t for the location of other members of t h i s group. This factor thus seems to describe i o f f i c e s related to forestry a c t i v i t i e s . / 3. Factor III i s a Earth-based group. The classes of o f f i c e s comprising t h i s factor are a g r i c u l t u r a l o f f i c e s and quarrying firms (AGRIC and QUARRY re s p e c t i v e l y ) . The high c o r r e l a t i o n between a g r i c u l t u r a l o f f i c e s and quarrying firms (r=0.65) would indicate that these classes of a c t i v i t i e s share a s p a t i a l a f f i n i t y for 67 one another. Advertising o f f i c e s (ADVERT) also loads r e l a t i v e l y high on t h i s factor. The nature of t h e i r a c t i v i t i e s would tend to suggest that they share a common in t e r e s t i n land ex p l o i t a t i o n : i n one case i t s a g r i c u l t u r a l use (AGRTC), and i n the other the extracting of resources from the ground (QUARRY). As such, t h i s group of o f f i c e s can be termed a "earth-based" factor. I t i s in t e r e s t i n g to note that QUARRY has s i g n i f i c a n t bondings with both mining a c t i v i t i e s (MINING) and transportation services (TRANSP) while a g r i c u l t u r a l services do not. 4 . Factor IV i s a Consumer-oriented Group. The classes of o f f i c e s forming t h i s group are novelty manufacturers (MANUF), medical o f f i c e s (MEDICAL) and l e g a l services (LEGAL). Non-profit organizations (NPORG) loads f a i r l y highly on t h i s factor as well as on Factor V. Only medical o f f i c e s are s i g n i f i c a n t l y correlated with the other o f f i c e s i n t h i s group. This suggests that some other reason other than functional associations i s the main reason for the o f f i c e group. Although admittedly speculative, i t seems quite reasonable to assume that the common element shared by 6 8 medical services, l e g a l services, and novelty manufacturing i s a need to be accessible to the public. This group of o f f i c e s are influenced i n t h e i r l ocation decision by a need to be convenient to the.public. They therefore may be considered a "consumer-oriented services" factor. 5 . Factor VI i s probably a spurious r e l a t i o n s h i p . This factor i s ignored i n subsequent analyses. Two classes of o f f i c e s comprise t h i s factor: f i s h e r i e s !(FISH) and i n t e r n a t i o n a l government (INTGOVT). Although there i s a high c o r r e l a t i o n between f i s h e r i e s and i n t e r n a t i o n a l government o f f i c e s ( r = . 5 9 ) the basis for the r e l a t i o n s h i p i s unknown and would appear spurious. Their l o c a t i o n a l pattern i s therefore l i k e l y to be non-systematic . 6 . Factor VII i s an insurance group. The groups of o f f i c e s comprising t h i s factor are: general contractors (GENCONT), t e x t i l e manufacturers (TEXTILE), and insurance companies (INSUR). Water transportation (WATERTR) also loads f a i r l y highly on t h i s factor. A l l of the classes of o f f i c e s except insurance companies have several between-6 9 group bonds. This suggests: that t h i s group of o f f i c e s be considered an "insurance" factor since i t appears that i t i s the presence of insurance companies which att r a c t s the other classes of o f f i c e s found i n t h i s group. 7. Factor VIII i s a f i n a n c i a l 1 groupj-The group of o f f i c e s comprising Factor VIII are banks and sim i l a r f i n a n c i a l i n s t i t u t i o n s (BANKING) and holding and investment companies (HOLDCO). The presence of only a single s i g n i f i c a n t within-group bond i n t h i s group of o f f i c e s probably indicates that these classes of o f f i c e s should have been more f i n e l y disaggregated. The few s i g n i f i c a n t correlations with other o f f i c e groups indicates that f i n a n c i a l i n s t i t u t i o n s are not s p a t i a l l y associated with any p a r t i c u l a r types of o f f i c e a c t i v i t i e s (except holding and investment companies). The group of o f f i c e s comprising t h i s factor are c l e a r l y " f i n a n c i a l " i n nature. 8 . Factor X i s an A n c i l l a r y Services Group. Two classes of o f f i c e s comprise t h i s f a c t o r : p r i n t i n g services (PRINT) and educational services (EDUC). These o f f i c e s have a strong within-group 70 bonding (r=0.51) (the highest s i g n i f i c a n t between-group bond i s only 0.27). The nature of the services these o f f i c e s provide strongly suggests that t h i s group of o f f i c e s be considered as a " a n c i l l a r y services" factor. They have a need to be r e a d i l y accessible to a great va r i e t y of d i f f e r e n t types of o f f i c e s and hence are not highly correlated to any p a r t i c u l a r class of o f f i c e s . 9. Factor XII i s a l i g h t manufacturing group. The p r i n c i p l e classes of o f f i c e s comprising t h i s factor are apparel manufacturing (CLOTH) and professional equipment manufacturing (PROFEQ). Novelty manufacturing (MANUF) also loads s i g n i f i c a n t l y on t h i s factor. From the nature of t h e i r products, i t seems evident that t h i s group of o f f i c e s comprise a " l i g h t manufacturing" factor. 10. Factor XIII i s a Mining A c t i v i t y Group. The group of o f f i c e s comprising Factor XIII are mining companies (MINING), transportation services (TRSERV), c r e d i t agencies (CREDIT), security companies(SECURITY), and r e a l estate firms (REALEST). Mining companies are the class of o f f i c e which loads highest on t h i s factor. The within-group correlations shows that mining a c t i v i t i e s are correlated with a l l of the other classes of o f f i c e s i n t h i s group. I t can be infer r e d that i t i s mining company o f f i c e s which draw the other o f f i c e s i n t h i s group into i t s o r b i t . This factor therefore can be considered a "mining a c t i v i t y " factor. 4 . 3 I d e n t i f i c a t i o n of Off i c e Groups i n the CBD The in t e r p r e t a t i o n of factors extracted from the in t e r c o r r e l a t i o n of o f f i c e s lends some credence to Hypothesis 1, namely: Groupings of interdependent o f f i c e a c t i v i t i e s are i d e n t i f i a b l e within the CBD. However, not a l l o f f i c e s showed any tendency to form groups with other o f f i c e s . I t would be over-taxing the l i m i t s of t h i s study to i n f e r that o f f i c e s having few within-group or between-group bonds are prime candidates for suburban re-location, although i n some cases t h i s may be true. However, about three-quarters of the classes of o f f i c e s did form, i . e . two or more classes of o f f i c e s having s i g n i -f i c a n t within-group c o r r e l a t i o n s . In addition, i n many cases, i t appears that the basis of the s p a t i a l association of offices i s func t i o n a l l y j u s t i f i e d . That i s , the implied linkages between d i f f e r e n t classes of o f f i c e s makes i n t u i t i v e sense. I t can be inferr e d that for at least some types of 7 2 o f f i c e s , s p a t i a l associations are analogous to functional associations and that form and process are therefore i n t e r r e l a t e d . 4.4 Grouping Analysis - 1 The f i r s t grouping analysis was intended to suggest the extent to which functional areas could be i d e n t i f i e d within the CBD. The factor scores of each of the o f f i c e groups considered e a r l i e r were used as inputs for the grouping programme. A high factor score for a group of o f f i c e s indicated s i t e s within the CBD where they were highly concentrated. As outlined i n the preceding chapter, grouping was done on the basis of p r o f i l e s i m i l a r i t y . Locations with s i m i l a r factor scores were then combined by the grouping programme into natural groups i . e . i n the case of single factors t y p i c a l l y 5 groups: areas scoring high p o s i t i v e l y , areas scoring moderately high positively, areas scoring low both p o s i t i v e l y and negatively, areas scoring moderately negatively, and areas scoring high negatively. Generally only the high loading and moderately loading areas (with the appropriate sign) for each factor were mapped. The re s u l t s of the f i r s t grouping analysis are shown on Maps 3 to 11. FACTOR I - THE HEAD, GOV'T, AND PROFESSIONAL BUSINESS OFFICES GROUP u FACTOR I I - THE FOREST INDUSTRY GROUP FACTOR I I I - THE EARTH-BASED GROUP FACTOR IV - THE CONSUMER- ORIENTED GROUP FACTOR V I I I - THE FINANCIAL GROUP FACTOR X - THE ANCILLARY SERVICES GROUP FACTOR XII - THE LIGHT MANUFACTURING GROUP c FACTOR X I I I - THE M I N I N G A C T I V I T I E S GROUP 4.5 Delineation of Sub-areas i n the CBD 82 I t was intended that the r e s u l t s of the f i r s t set of the grouping analysis would provide confirmation of hypothesis 2, namely, Sub-areas of speci a l i z e d o f f i c e a c t i v i t i e s may be delimited within the CBD. To t h i s end, the res u l t s of the analysis proved only moderately successful. Only three of the groups of o f f i c e s ; the head, government and professional business o f f i c e s group (Factor 1), the forest industry group (Factor 2), and the mining a c t i v i t y group (Factor 13) showed any tendency to form contiguous sub-areas i n the CBD. And even i n the case of these groups of o f f i c e s , there were many e x c e p t i o n s - — i . e . high scoring block-fronts not contiguous with the main area of concentration. This does not mean that the d i s t r i b u t i o n of the other groups i n the CBD i s necessarily random nor does i t imply that the within-group bonds for these groups of o f f i c e s are unimportant. I t does mean, however, that there are other l o c a t i o n a l factors present. The importance of the between-group bonds as a l o c a t i o n a l factor i s s t i l l to be discussed. Before doing so, however, a few observations on the d i s t r i b u t i o n of some of the groups of o f f i c e s are given. 1. The consumer-oriented group of o f f i c e s , although 83 showing l i t t l e evidence of concentrating i n a single area, are found along the major a r t e r i a l streets i n the CBD. Side-streets and locations near, the periphery of the CBD have few high-scoring block-fronts. 2. The highest scoring block-fronts of the l i g h t -manufacturing group are found i n the older sections of the CBD near i t s margin. 3. The highest concentration of the a u x i l i a r y service group i s located near the geographical centre of the CBD. From these locations they can serve a great v a r i e t y of o f f i c e s i n a l l sections of the CBD. 4. I t i s noteworthy that the f i n a n c i a l group of o f f i c e s d i d not form an i d e n t i f i a b l e sub-area i n the CBD. I t was anticipated that a f i n a n c i a l d i s t r i c t would emerge. A more disaggregated d e f i n i t i o n of the classes of o f f i c e s comprising t h i s group probably would have met with greater success. Not s u r p r i s i n g l y , f i n a n c i a l i n s t i t u t i o n s are usually located facing major a r t e r i a l s i n the CBD. The l o c a t i o n a l patterns of the remaining o f f i c e groups proved more d i f f i c u l t to determine. 4.6 Grouping Analysis - II A second grouping procedure was c a r r i e d out using the standardized factor scores of each block-front on a l l the groups of o f f i c e s . This analysis was intended to cast l i g h t on the s p a t i a l i n t e r r e l a t i o n s h i p of groups of o f f i c e s That i s , i t was thought that the location of o f f i c e areas within the CBD would r e f l e c t the r o l e of between-group linkages as a l o c a t i o n a l factor. The r e s u l t s of t h i s grouping analysis are shown on Map 12. In t o t a l , 11 d i f f e r e n t types of o f f i c e areas emerged from t h i s analysis (as w e l l , there were some addi-t i o n a l single block-front areas but these were not considered). Although some c l u s t e r i n g i s evident i n the d i s t r i b u t i o n of these o f f i c e types, i n general, a l l that the r e s u l t s of t h i s analysis can t e l l us i s that functional areas i n the CBD are not very c l e a r l y defined. This i s consistent with the f i r s t grouping of o f f i c e areas which revealed that there existed much overlap i n the s p a t i a l d i s t r i b u t i o n of each o f f i c e group. The r e s u l t s of the second grouping procedure could not be interpreted further. An a l t e r n a t i v e method of analyzing the s p a t i a l r e l a t i o n s h i p of o f f i c e groups was then considered. This required the viewing of o f f i c e classes which loaded highly on more than a single factor. 86 4.7 Complex Factors Variables which have high loadings on more than a single factor can be thought of as measuring more than a single dimension. In the case of t h i s study, o f f i c e s having high correlations with more than a single group can be regarded as being "common" to both. E a r l i e r men-ti o n has been made to what has been c a l l e d "overlapping acquaintanceships" (p. 39). This i s a s i m i l a r concept. Examination of the between-group bondings i n d i -cated i n Figure 6 (p. 62) reveals that the members of Factor I and Factor I I , Factor II and Factor XIII can can regarded as complementary--these o f f i c e s have numerous s i g n i f i c a n t between-group bonds. If true, t h i s provides an explanation for the'poor'results of the previous group-ing analysis. That i s , because the areas of each o f f i c e group are overlapping the grouping programme was unsuccess-f u l i n d e l i n i a t i n g functional areas i n the CBD. The groups of linked o f f i c e s rather than forming discrete areas of concentration i n the CBD are intermingled with other o f f i c e groups. Results of the factor analysis were used to i d e n t i f y the o f f i c e s which acted as 'connectors' between the groups. (Table 7, p. 60) For example, e l e c t r i c a l machinery manu-facturers are cqmmonly associated with both the head, govern-87 and professional business services group, and the forest industry group. S i m i l a r l y , shipping a c t i v i t i e s can be considered the l i n k between the forest industry group and the insurance group. In some case at l e a s t , i t s seem possible to i n f e r the functional r e l a t i o n s h i p of o f f i c e groups by viewing t h e i r s p a t i a l r e l a t i o n s h i p s . Seven of the groups of o f f i c e s considered showed evidence of having s i g n i f i c a n t s p a t i a l association. A diagrammatic representation of o f f i c e groups having at least one common member i s shown below. Hard-Core Offices Mining^ ^ » ^ Group ) • Head, /< X^T I Govt.,/ Forestry ^v^ .^—^ —,Jk..m+ etc. \ Group / y \ ^ V ** (Sa^ Dup **jf '^tri^urance V / Earth^«*«.JL.*^ Group •/ t Based J Non-essential Off i c e s Group / , ~ V I Consumer- j | Light *% * Oriented l f Manuf. I \ Group  XjS Group / As shown above, there seem to be at least two i d e n t i f i a b l e sets of o f f i c e groups i n the Vancouver CBD. The larger, more complex set i s comprised of what might be considered 'hard-core' CBD o f f i c e s . The existence of many s i g n i f i c a n t 88 c o r r e l a t i o n s between members of t h i s s e t of a c t i v i t i e s suggests t h a t they are f u n c t i o n a l interdependent,as w e l l . T h i s seems to be i n d i c a t e d by t h e i r s p a t i a l d i s t r i b u t i o n which shows t h e i r l o c a t i o n s t o be h i g h l y i n t e g r a t e d w i t h no d i s t i n c t o f f i c e areas emerging. There are onl y t e ndencies f o r c l u s t e r i n g i n a ge n e r a l o f f i c e area. In c o n t r a s t , the oth e r s e t of o f f i c e groups t h a t emerged appears t o have few in t e r d e p e n d e n c i e s w i t h o t h e r o f f i c e s . I t might, t h e r e f o r e , be i n f e r r e d t h a t they are n o n - e s s e n t i a l CBD o f f i c e s , and t h e i r l o c a t i o n a l p r e f e r e n c e s are'-.not'-dependent on the l o c a t i o n of other o f f i c e s . 4.8 O f f i c e Area R e l a t i o n s h i p s The o r i g i n a l attempt t o d i s c o v e r the f u n c t i o n a l r e l a t i o n s h i p between o f f i c e areas i n the CBD was stymied by the f a c t t h a t i t was d i f f i c u l t to f i n d such o f f i c e areas ,.iQnly,-,a few of the o f f i c e groups showed any marked tendency t o c l u s t e r o r agglomerate i n a s i n g l e p a r t of the CBD. The numerous between-group bonds between members of each o f f i c e group tend t o i n d i c a t e t h a t o f f i c e s and o f f i c e areas w i t h i n the Vancouver CBD are w e l l i n t e g r a t e d . Conse-qu e n t l y i t was not p o s s i b l e to p r o v i d e any s u b s t a n t i a l e v i -dence f o r the t h i r d Hypothesis t h a t , The r e l a t i v e l o c a t i o n of v a r i o u s o f f i c e areas i n the CBD stems from t h e i r f u n c t i o n a l r e l a t i o n -s h i p s . X X X Although the f a c t o r a n a l y s i s i d e n t i f i e d groups of o f f i c e s which appear to have some f u n c t i o n a l b a s i s , t h e i r s p a t i a l d i s t r i b u t i o n i n d i c a t e s t h a t o f f i c e s areas are not w e l l d e f i n e d w i t h i n the Vancouver CBD. In p a r t the poor d i f f e r e n t i a t i o n of o f f i c e areas may be due to the t i m i n g of the study. There has been a l a r g e i n f l u x of new o f f i c e b u i l d i n g s i n the p a s t few years w i t h r e s u l t a n t i n s t a b i l i t y i n the l o c a t i o n o f o f f i c e s . N e v e r t h e l e s s , the f a c t t h a t o f f i c e groups c o u l d be e x t r a c t e d and i n t e r p r e t e d from the f a c t o r a n a l y s i s would tend to i n d i c a t e o f f i c e i n t e r a c t i o n has some importance as a l o c a t i o n a l f a c t o r w i t h i n the CBD. CHAPTER V CONCLUSIONS AND SUMMARY 5.1 Shortcomings of the Study 5.2 General Conclusions 5.3 Areas of Further Research 9 0 CHAPTER V. CONCLUSIONS AND SUMMARY The view that the urban system should be viewed as a series of i n t e r r e l a t e d a c t i v i t y subsystems i s becoming increasingly prevalent. Offices i n the CBD should be seen as but one sub-system, but an important one, i n the far larger regional system. The findings of t h i s study would tend to indicate that i t i s no longer s u f f i c i e n t to consider o f f i c e s i n the CBD as a homogeneous class of a c t i v i t i e s . Their interdependencies are many and diverse. O f f i c e a c t i v i t i e s are a major component of the commercial makeup of the CBD. Although the existence of o f f i c e functions i n the CBD can be l a r g e l y accounted for by various location theories, l i t t l e i s said by these same theories about the r e l a t i v e location of o f f i c e s within the CBD. The tendency of patterns of o f f i c e s to emerge would tend to indicate that i n t e r a c t i o n between o f f i c e s i s an important location factor on the micro-level. This study attempted to discover i f i n t e r a c t i o n did play a r o l e i n influencing o f f i c e location i n the CBD. The r e s u l t s of t h i s study tend to indicate that t h i s i s the case for some types of o f f i c e s . Others seem to have other l o c a t i o n a l requirements not considered i n t h i s study. 91 5.1 Shortcomings of the Study Several •shortcomings of the case study should be noted. The main problem areas encountered i n undertaking the case study were with (1) c l a s s i f i c a t i o n of o f f i c e a c t i v i t i e s , (2) choice of areal u n i t s , (3) data measurement, and (4) other l o c a t i o n a l f a ctors. 1. C l a s s i f i c a t i o n To d i s t i n g u i s h o f f i c e a c t i v i t i e s from r e t a i l and manufacturing a c t i v i t i e s was d i f f i c u l t i n many cases. This ambiguity was p a r t i c u l a r l y d i f f i c u l t to resolve because the d e f i n i t i o n of land use was for the most part based on S.I.C. numbers rather than any functional d e f i n i t i o n of land use. Consequently, some a c t i v i t i e s have probably been m i s c l a s s i f l e d and i n general the c l a s s i f i c a t i o n of o f f i c e s i s i n s u f f i c i e n t l y refined and inconsistent i n d e f i n i t i o n . 2. Area! Units To reduce the problem of differences i n the size of areal units, block-fronts rather than i n d i v i d u a l buildings, were used. Large differences i n the size of areal units were s t i l l however i n evidence. This poses a problem i n analyzing c o r r e l a t i o n among s p a t i a l u n i t s . The error variance that results from the use of areal units of d i f f e r e n t size i s unknown. 9 2 3. Data Measurement The o r i g i n a l raw data c o l l e c t e d by the Vancouver Planning Department underwent several transforma-tions before being used i n t h i s study. As well as any errors already contained i n the data, additional errors were introduced by manipulation (eg. m i s c l a s s i f i c a t i o n ) of the data to put i t i n usable form. The magnitude of such errors i s impossible to estimate. 4 . Other Factors Location i n the CBD i s influenced to some extent by zoning and other municipal controls and a vari e t y of other factors not considered i n t h i s study. The o v e r a l l e f f e c t of these other factors i s not known. Zoning, for instance, reduces the p o s s i b i l i t i e s of covariation among d i f f e r e n t types of o f f i c e a c t i v i t i e s by l i m i t i n g the areas i n which development can take place. As well, the p a r t i c u l a r needs of each o f f i c e must be kept i n mind. Bearing i n mind the fac t that d i r e c t confirmation of the hypothesis of t h i s study was not possible and the various shortcomings of the case study, any conclusions drawn must be viewed cautiously. 93 5.2 General Conclusions F i r s t , the findings of t h i s study suggest that there are some s i g n i f i c a n t i n t e r r e l a t i o n s h i p s between some classes of o f f i c e s , but not a l l . That i s , c e r t a i n types of o f f i c e s are s p a t i a l l y associated and probably functionally associated with one another. Since the finding i s based on data from a single c i t y , Vancouver, d i r e c t extrapolation of t h i s r e s u l t to other urban areas i s not meaningful. In f a c t , the res u l t s would suggest that the economic base of the region i s important i n the linkages that e x i s t between o f f i c e s . A second general conclusion, and one that has important ramifications for the future of o f f i c e decentra-l i z a t i o n , i s the finding of in t e r r e l a t i o n s h i p s between almost a l l types of o f f i c e s i n the CBD. Although the linkages are i n many cases i n d i r e c t , nevertheless, considered i n i t s t o t a l i t y t h i s suggests that with the pre-sent state of communications technology i t i s highly u n l i k e l y that large-scale decentralization of o f f i c e s from the CBD i s possible. 5.3 Areas of Further Research This study was not undertaken with the intention that no further research would be necessary. On the contrary, i t was considered primarily a p i l o t study i n an often ignored area of urban location theory. The urgency for further research i n t h i s area i s obvious when the growing importance of office-type employment i n the regional economy i s considered. In the study undertaken, o f f i c e i n t e r a c t i v i t y was viewed primarily from a s t a t i c viewpoint. A l o g i c a l extension of t h i s study would be to view the dynamic aspects of CBD o f f i c e l ocation, s p e c i f i c a l l y , to unravel the r e l a t i o n -ship between land use and the linkages which generate s p a t i a l patterns. This study proceeded from the assumption that process (interaction) follows from form (spatial structure). More r e a l i s t i c a l l y , there should be feedback i n t h i s r e l a t i o n s h i p . This i s shown diagrammatically below: Form -» ^Process STATIC Form DYNAMIC ± orm --^  ^•Process Form not only plays a r o l e i n determining i n t e r a c t i o n , but also i n t e r a c t i o n plays a r o l e i n determining form. I t i s t h i s complete synthesis that i s necessary to understand the l o c a t i o n a l needs of o f f i c e establishments. X X X 95 This study was large l y exploratory i n nature. In i t a few multivariate techniques were tested as possible means of uncovering patterns i n the location of o f f i c e s i n the Vancouver CBD. The r e s u l t s , although far from conclusive, lend evidence that some o f f i c e groups that are s p a t i a l l y associated probably have functional associations as well. At a minimum, i t i s hoped that t h i s study points the way for further research. The p o s s i b i l i t i e s are many, the fru s t r a t i o n s great, and the rewards small, but much more attention i s due t h i s often neglected side of urban lo c a t i o n theory. BIBLIOGRAPHY BIBLIOGRAPHY Allpass, John. (1968) "Changes i n the Structure of Urban Centers." JAIP, XXXIV.':3 '-(May, 1968), 170-173. Allpass, John et a l . (1967) "Urban Centers and Changes i n the Center Structure." Urban Core and Inner C i t y , ed. Dr. Michel H. H. van Hulten. Leiden, Netherlands: University of Amsterdam, 1967. 103-117. Alonso, William. (1964) Location and Land Use. Cambridge: Harvard University Press, 1964. Alonso, William. (1964a) "Location Theory," Regional  Development and Planning, eds. John Friedmann and William Alonson. Cambridge: The M.I.T. Press, 1964. 78-106. Archer, R. W. (1969) "The E f f i c i e n c y of the Sydney Central D i s t r i c t , " A u s t r a l i a n Planning I n s t i t u t e  Journal, 7:3 (July, 1969), 64-76. Beckmann, Martin. (1968) Location Theory. New York: Random House, 1968. Blumenfeld, Hans. (1967) The Modern Metropolis, ed. Paul D. Spreiregen. Montreal: Harvest House, 1967. Bourne, Larry S. (1967) Private Redevelopment of the  Central C i t y . Chicago: Department of Geography Research Paper No. 1 1 2 , University of Chicago, 1967. Buchanan, James M. and William Craig Stubblebine, ( 1 9 6 8 ) "Externality," Readings i n Microeconomics, ed. William B r e i t and Harold M. Hochman. Toronto: Holt, Rinehart and Winston, Inc., 1 9 6 8 . 477-488. Carruth, Eleanore. (1969) "Manhattan's O f f i c e Building Binge," Fortune, LXXX:5 (October, 1969), 114-117+. Center for Real Estate and Urban Economics (CREUE). (1968) Jobs, People and Land, Bay Area Simulation  Study (BASS). Berkeley: I n s t i t u t e of Urban and Regional Development Special Report No. 6, University of C a l i f o r n i a P r i n t i n g Department, 1968. 97 Cherukupalle, Nirmala devi, "Relationship Between Attributes Simple and Multiple Regression and Correlation" (mimeographed) n.d. Chi n i t z , Benjamin. "City and Suburb," City and Suburb:  The Economics of Metropolitan Growth, ed. Benjamin C h i n i t z / Englewood C l i f f s , N.J.: Prentice-Hall, Inc., 1964. 3-50. Cooley, William W. & Paul R. Lohnes. (1962) Multivariate Procedures' f o r the- Behavioral Sciences. John Wiley & Sons, Inc.: New York, 1962. Cowan, Peter. (1967) "On the Pattern of Buildings," Urban Core and Inner C i t y , ed. Dr. Michel H. H. van Hulten. Leiden, Netherlands: University of Amsterdam, 1967. 324-339. Cowan, Peter, J . Ireland, and D. Fine. (1967) "Approaches to Urban Model Building," Regional Studies, 1:2 (December, 1967). 163-172. Cowan, Peter et a l . (1969) The Of flee-A Facet of: Urban Growth. London: Heinemann Educational Books Ltd., 1969. Cowan, Peter and D. F i n e . ( 1 9 6 9 ) "On the Number of Links i n a System," Regional Studies, 3 (1969). 235-242. Daniels, P. W. (1969) "Office Decentralization From London," Regional Studies, 3 (September, 1969) . 171-178. Downtown Idea Exchange. (1971) "The O f f i c e Function," Part I, 18:7 (April 1, 1971) and Part I I , 18:10 (May 15, 1971). Echenique, M., D. Crowther and W. Lindsay. (1969) "A Spatial Model of Urban Stock and A c t i v i t y , " Regional Studies, 3 (1969) . 281-312. Fisher, Robert Moore. (1967) The Boom i n O f f i c e Buildings. Washington, D.C: Urban Land I n s t i t u t e Technical B u l l e t i n No. 58, 1967. Foley, Donald L. (1957) The Suburbanization of Adminis-t r a t i v e Offices i n the San Francisco Bay Area. Berkeley: Real Estate Research Program Report No. 10, University of C a l i f o r n i a P r i n t i n g Department, 1957. 98 Foley, Donald L. (1964) "An Approach to Metropolitan Spatial Structure," Explorations 1 Into Urban Structure, Melvin M. Webber: et a l . Philadelphia: University of Pennsylvania Press, 1964. 21-78. Getis, Arthur and Judith M. Getis. (1968) "Retail Store Sp a t i a l A f f i n i t i e s , " Urban Studies, 5:3 (November, 1968) , 317-332. Goddard, J . (1968) "Multivariate Analysis of Of f i c e Location Patterns," Regional Studies, 2:1 (September, 1968). 69-85. Goddard, J . B. (1971) "Office Communications and O f f i c e Location: A Review of Current Research," Regional  Studies, 5 (December, 1971). 263-280. Goldberg, Michael A. (1970) "Transportation, Urban Land Values, and Rents: A Synthesis," Land Economics, XLVI: 2 (May, 1970), 154-162. Goldberg, Michael A. (1970a) "Quantitative Approaches to Land Management," mimeo. AAAS Chicago Meeting, December 26-31, 1970. Gottman, Jean. (1966) "Why the Skyscraper?" Geographica1  Review, LVI:2 ( A p r i l , 1966), 190-212. Gottman, Jean. (1970) "Urban C e n t r a l i t y and the Interweaving of Quarternary A c t i v i t i e s , " E k i s t i c s , 29:175 (May, 1970). 322-331. Grey,. Arthur L. et a l . (1970) P eople and Downtown: Us e, Attitudes, Settings. Seattle: College of Architecture and Urban Planning, University of Washington, September, 1970. Haggett, Peter. (1969) Locational 1 Analysis i n Human Geography. London: Edward Arnold (Publishers) Ltd., 1969. Hawkes, Dean. (1968) O f f i c e s : A Digest of Data. Cambridge: Centre for Land Use and B u i l t Forms Working Paper No. 10, University of Cambridge, (August, 1968). 99 Hayes, M. Cordey and A. G. Wilson. (1970) S p a t i a l  Interaction. London: Centre for Environmental Studies Working Paper 57, (January, 1970). Hedlin Menzies & Associates' Ltd. (1970) Downtown Vancouver, 1969: An Economic Study. Vancouver, B. C. (January, 1970) . Helmer, Olaf and Nicholas Rescher. (1960) "On the Epistemology of the Inexact Sciences." Project Rand R-353, Santa Monica, C a l i f . : The Rand Corporation (February, 1960) . Herrera, P h i l l i p . (1967) "That Manhattan Exodus," Fortune LXXV:6 (June, 1967) . 106-109+. Hoch, Irving. (1969) "The Three-dimensional C i t y : Contained Urban Space," The Quality of the Urban Environment, ed. H.S. P e r l o f f . Baltimore: Resources for the Future Inc., 1969. 75-135. Hoover, Edgar M. (1948) The Location of Economic A c t i v i t y New York: McGraw-Hill Book Company, Inc., 1948. Hoover, Edgar M. (1968) "The Evolving Form and Organization of the Metropolis," Issues 1 In Urban Economics, ed. H.S. P e r l o f f and Lowdon Wingo, J r . Baltimore: Resources for the Future, Inc., The John Hopkins Press, 1968. 237-284. Hoover, Edgar M. (1968a) "Trends i n Location and Location Theory," Pittsburgh: Center for Regional Economic Studies Occasional Paper No. 6, University of Pittsburgh, 1968. Hoover, Edgar M. (1971) An Introduction to Regional Economics. New York: A l f r e d A. Knopf, 1971. Hoover, Edgar M. and Raymond Vernon. (1959): Anatomy of  a Metropolis. Garden C i t y , N.Y.: Anchor Books, Doubleday and Company, Inc., 1959. Kristensson, Folke. (1967) "The Impact of Changing Economic and Organizational Structure on Urban Core Development (Size and Organization)," Urban Core and  Inner C i t y , ed. Dr. Michel H. H. van Hulten. Leiden, Netherlands: University of Amsterdam, 1967. 404-414. Krumbein, W. C. (1957) "Comparison of Percentage and Ratio Data i n Facies Mapping," Journal of Sedimentary  Petrology 27,3 (September, 1957) , 293-297. 100 Lee, Douglass B. and Oscar Yujnovsky. (1971) Transporta- t i o n and Land Use: Research Design f o r the Analysis  of BART Impacts. Berkeley: Joint Transport Program, Insti t u t e of Urban and Regional Development, BART Impact Studies, Working Paper No. 148/BART 2, University of C a l i f o r n i a , ( A p r i l , 1971). Lichtenberg, Robert M. (1960) One-tenth of a Nation. Cambridge: Harvard University Press, 1960. McQuade, Walter. (1970) "Downtown i s Looking Up," Fortune LXXXI:2 (February, 1970), 132-136+. Mayer, Harold M. (1969) The Sp a t i a l Expression of Urban  Growth. Washington, D.C.: Association of American Geographers Resource Paper No. 7, 1969. Meier, Richard L. (1962) A Communications Theory of: Urban  Growth. The M.I.T. Press, 1962. M o r r i l l , Richard L. (1970) The Spatial Organization of Society. Belmont, C a l i f . : Wadsworth Publishing Company, Ltd., 1970. Murphy, Raymond E. and J . E. Vance, J r . (1967) "Delimiting the CBD," Urban Research Methods, ed. Jack P. Gibbs. Toronto: D. Van Nostrand Company (Canada), Ltd., 1967. 187-221. Neutze, Max. (1968): The Suburban Apartment Boom: Case  Study of a Land Use Problem. Washington, D.C: Resources for the Future, Inc., 1968. Propst, Robert. (1968) The O f f i c e , A F a c i l i t y Based on Change. Elmhurst, 111.: The Business Press, 1968. Rannells, John. (1956) The Core of the C i t y . New York: Columbia University Press, 1956. Rapkin, Chester. (1970) "Economic Patterns of Urban Land Use," The Appraisal Journal, ( A p r i l , 1970), 227-239. R a t c l i f f , Richard U. (1961) Real Estate Analysis. New York: McGraw-Hill Book Company, Inc., 1961. Real Estate Board of Greater Vancouver. (1971a) Real Estate  Trends i n Metropolitan Vancouver/ 1971. The S t a t i s t i c a l & Survey Committee of the Real Estate Board of Greater Vancouver, Vancouver, B. C. (August, 1971). 101 Real Estate Board of Greater Vancouver. (1971): O f f i c e Space Survey, 1971. Vancouver, B. C. (November, 1971). Real Estate Research Corporation. (1960) Causes of the Postwar Boom i n Offlce : Space Construction i n Manhattan. Chicago: Chicago Central Area Committee. (October 13, I960). Regional Plan Association. Growth1 and Location of O f f i c e Jobs i n the United States and the1 New1 York Region:  Summary Report. New York, N.Y., n.d. Robbins, Sidney M. and Nestor E. Terleckyj. (1960) Money Metropolis; A Locational Study of 1 F i n a n c i a l A c t i v i t i e s i n the New1 York1 Region. Cambridge, Mass.: Harvard University Press, 1960. Rummel, R. J . (1969) "Understanding Factor Analysis" The Journal of C o n f l i c t Resolution Vol. XI, 4 (December, 1967). 444-480. Seligman, Daniel. (1963) "The Future of the Off i c e - B u i l d i n g Boom," Fortune,' LXVII;3 (March, 1963), 84-88+. Simmons, James W. (1968) Flows i n an Urban Area: A Synthesis. Toronto: Centre for Urban and Community Studies Research Report No. 6, University of Toronto (November, 1968). Simmons, James W. (1970) Patterns of Interaction Within  Ontario and Quebec. Toronto: Centre for Urban and Community Studies Research Paper No. 41, University of Toronto, (November, 1970). Smith, Larry. (1961) "Space for the CBD's Functions," Internal Structure of the C i t y , ed. Larry S. Bourne. New York: Oxford University Press, 1971. Stanton, William J . (1967) Fundamentals of Marketing (2nd e d i t i o n ) . New York: McGraw-Hill Book Company, 1967. Tabor, P h i l i p . (1969) Pedestrian C i r c u l a t i o n i n O f f i c e s . Cambridge: Land Use and B u i l t Form Studies Working Paper No. 17, University of Cambridge School of Architecture ( A p r i l , 1969). 102 Thorngren, Berth. (1967) "External Economies of the Urban Core,'" Urban Core and Inner C i t y , ed. Dr. Michel H. H. van Hultan. Leiden, Netherlands:: University of Amsterdam, 1967. 413-420. Vancouver City Engineering Department. (1965) An information  Retrieval System for Urban Areas. Technical Report. Vancouver, B. C. (Revised: May, 1967) February, 1965. Vancouver City Planning Department. (1970) Downtown Vancouver: Development: Concepts, Vancouver, B. C. (June, 1970). Vancouver City Planning Department. (1970a) Land Use Downtown Vancouver, 1970. Technical Report Supplement to Downtown Vancouver Plan, Concepts for Development. Vancouver, B. C. (July, 1970. Vancouver City Planning Department. (1971) O f f i c e Establishments--A Directory: Analysis. Vancouver, B. C. (December, 1971). Vernon, Raymond. (1957) "Production and D i s t r i b u t i o n i n . the Large Metropolis," The: Annals of the American  Academy of P o l i t i c a l and Social Sciences, 314 (1957) . 15-29. Vernon, Raymond. (1963) Metropolis: 1985. Garden C i t y , N.Y.: Anchor Books, Doubleday and Company Inc., 1963. Webber, Melvin M. (1964) "The Urban Place and the Nonplace Urban Realm," Explorations into: Urban Structure, Melvin M. Webber e t a l . Philadelphia: University of Pennsylvania Press, 1964. 79-153. Whipple, R.T.M. (1968) "Land Use Associations i n Melbourne's Central Area," Australian Planning I n s t i t u t e Journal. 6:3 (July 1968), 64-70. Wise, Arnold. (1971) "The Impact of El e c t r o n i c Communications on Metropolitan Form," E k i s t i c s , 32:188 (July, 1971), 22-31. Yavitz, Boris and Thomas M. Stanback, J r . (1967) Ele c t r o n i c Data Processing i n New York C i t y : Lessons  f o r Metropolitan Economics. New York: Columbia University Press, 1967. APPENDICES 103 APPENDIX A SURVEY RESULTS OF STUDIES ON FACTORS GOVERNING THE LOCATION OF OFFICE PREMISES IN CENTRAL LONDON 1. Economist Intelligence Unit Survey (19.64) Central Samples Reason ..............% Good supply of s t a f f 21 .7 Traditional/always located there 40 .6 Good communications with r e s t of UK 38 .0 Contact with external organizations 78 .2 Contact with i n t e r a l departments 11 .2 Contact with parent/associate companies 17 .2 Prestige 37 .1 Internal Communications 11 .9 2. Jo i n t Unit for Planning Research Survey (1967) Reason (*denotes important for suburban locations) % Proximity to c l i e n t s 24 Near to a sp e c i f i e d place 16 Central 15 *"Reasonably c e n t r a l " 13 *Good Communications 12 Near to parent or associated company 11 Proximity to suppliers or services 9 Suitable rents 8 Tr a d i t i o n a l l o cation for p a r t i c u l a r type of firm 8 *Near to a i r p o r t , railway terminal, motorway, etc.7 • A c c e s s i b i l i t y for s t a f f 7 Tradition 6 V i s i t o r s from abroad 5 *Labour a v a i l a b i l i t y 4 Prestige 4 *Car parking 4 Good working conditions 4 *Near director's home 3 Modern new building 2 *London telephone or postal address 1 . Available at time 1 *Economist Intelligence Unit, A Survey of the Factors Governing  the Location of Offices in the London Area. Cited in Hawkes(1968) ,p.43. **Cowan et a l , (1968). 104 APPENDIX B The Data The source of the data u t i l i z e d i n t h i s study was a survey carried out by the Vancouver City Planning Department i n the Spring and Summer of 1969. The area surveys included the entire Downtown Peninsula plus the commercial d i s t r i c t s along Main Street and Broadway (see Map A - l ) . A summary of the Downtown Peninsula portion of t h i s survey was published by the City Planning Department i n July 1970 as a Technical Report t i t l e d Land Use: Downtown  Vancouver, 1970. As well, a copy of the coding sheets u t i l i z e d i n the course of the survey i s available at the City Planning Department. The t o t a l study area data consists of 15,679 in d i v i d u a l records. The data has been coded as follows: 1. Each i n d i v i d u a l record i s 27 columns i n length with format: (F2.0,2F3.0,2E2.0,F3.0,F1.0,F7.0,F3.0,A1) COLUMNS 1-2 D i s t r i c t . The d i s t r i c t numbers corres-pond to those u t i l i z e d i n the 1966 Vancouver Transportation Study. COLUMNS 3-5 Onstreet. see Appendix C. COLUMNS 6-8 Atstreet. see Appendix C. COLUMNS 9-10 Lot. see Appendix C. (It would be possible to read columns 3-10 as a single 106 number (eg. F8.0) i n which case t h i s would be the "address" of each record.) COLUMNS 11-12 Floor. The f l o o r on which an e s t a b l i s h -i s found. COLUMNS 13-15 S.I.C. Type of establishment by the 3-digit American S.I.C. Code. See Appendix F. COLUMN M6 : Open Land Use. A "1" i n t h i s column indicates an open space land use associated with the S.I.C. land use indicated i n columns 13-15. (If desired, columns 13—16. could be read as a single number (eg.F4.0) i n which case S.I.C. open space land uses would become a separate S.I.C. type) COLUMNS 17-23 Area. Given i n square feet. COLUMNS 24-26 Parking. Number of parking spaces. COLUMN 27 Establishment. A "x" i n column 27 indicates that the record i s not a separate establishment but rather a part of a single firm found on another f l o o r of the same building. 2. The medium on which the data i s stored i s magnetic tape. The magnetic tape i s 9-track with a density of 1600 bytes per inch (BPI). Each l o g i c a l record i s 255 characters i n length and the size of each block i s 2700 bytes. In t o t a l there are 157 blocks. 107 APPENDIX C Description of the Coding of Data* ' B a s i c a l l y the coding of street patterns i n use i n Vancouver involves the superimposing of a coordinate matrix on the street pattern. In general, the r e s u l t i n g street pattern coordinate matrix has the following features: 1. Streets themselves are assigned co-ordinate numbers. 2. The co-ordinates warp to f i t the configuration of the streets even when not l i n e a r . 3. East-West (horizontal) streets have numbers above 500. 4. North-South (vertical) streets have numbers below 500. 5. Space i s l e f t between numbers for future subdivisions and denser street spacing i n adj acent areas. (see Map A-2 for the coordinate numbers assigned to streets i n the Downtown Peninsula) Coding: An Example Pender St. i s assigned a coordinate number of 592. S i m i l a r l y G r a n v i l l e St. i s assigned a coordinate number of 129. (See Map A-2) Thus Pender i s a street running East-West and, Granville i s a street running North-South. The street p a r a l l e l l i n g Granville to the East i s Seymour St. which i s numbered as 134. S i m i l a r l y the street p a r a l l e l l i n g Pender to the south i s Dunsmuir St. which i s numbered as 595. Using M fern COORDINATE SYSTEM USED IN THE VANCOUVER DOWNTOWN PENINSULA 109 Vancouver 1s coordinate system the section of street on Pender between Granville and Seymour i s indicated by 592,129 and the section of street on Granville between Dunsmuir and Pender would be indicated by 129,592. I t should be noted that: a. the on-street coordinate i s given f i r s t . b. the north or west l i m i t of the block (intersection) or at-street coordinate i s given next. I t i s possible therefore to i d e n t i f y each street section of block length by using 6 d i g i t s . An additional 2 d i g i t s can be used to i d e n t i f y i n d i v i d u a l properties or 20 f t . increments of street. These two additional d i g i t s immediately follow the a t - s t r e e t coordinate. The use of these two additional digits, could be useful since they allow the i d e n t i f i c a t i o n of: 1. Corner l o t s . Corner l o t s may be i d e n t i f i e d as the smallest and largest odd or even numbers. (eg. normally 1 and 99, 2 and 98) 2. Side of street. Side of street i s indicated by odd and even numbers. 3. Pos i t i o n of l o t i n block (eg. 1st, 2nd, 3rd from North or West corner). 110 In t h i s study though the data was coded using the 8-digit address i d e n t i f i c a t i o n only the f i r s t 6-digits were used. That i s , the unit used for analysis was i n d i v i d u a l block fronts rather than i n d i v i d u a l buildings. *The information for t h i s section of the paper was drawn from An Information Retrieval System for Urban Areas published as a Technical Report by the Vancouver City Engineering Depart-ment. (February 1965, revised May 1967). In p a r t i c u l a r pp. 18-47A proved-- useful. I l l APPENDIX D Delimitation of the CBD Ba s i c a l l y , the Murphy-Vance technique defines the boundaries of the CBD by use of a combination of land use height and in t e n s i t y indices. The only CBD land uses considered e s s e n t i a l by t h i s technique are r e t a i l and private o f f i c e a c t i v i t i e s . To be considered part of the CBD two c r i t e r i a have t o be met: 1. a r e t a i l - o f f i c e p l o t r a t i o of 1 or more, and 2. a r e t a i l - o f f i c e f l o o r space r a t i o of 0.5 or more. The Murphy-Vance approach t o CBD delineation i s not without i t s weaknesses. Archer 1 makes the following points: Three important l i m i t a t i o n s of the Murphy-Vance indices should be recognized. They l i m i t C.B.D. land uses to r e t a i l i n g and private o f f i c e s whereas public o f f i c e s and a number of metropolitan market-scale land uses can claim a C.B.D. r o l e . Second, t h e i r indices pro-vide a mechanical d e f i n i t i o n which only p a r t l y r e f l e c t s the causal re l a t i o n s h i p s underlying the C.B.D. Third, the p a r t i c u l a r values of the indices were determined by reference to c i t i e s with metropolitan areas populations i n the range of 107,000 to 210,000 persons. The technique u t i l i z e d i n t h i s study departs from the Murphy-Vance technique i n the following aspects: 1. Government o f f i c e s are included i n the d e f i n i t i o n of o f f i c e a c t i v i t i e s . Archer (1969), p. 65. 112 2. A preliminary delineation was ca r r i e d out by eliminating a l l areas i n the Downtown Peninsula not zoned for commercial uses. Approximately 50% of the downtown area was thereby excluded. (See Map A-3). Excluded by t h i s step were areas zoned i n d u s t r i a l , r e s i d e n t i a l , and parking, none of which are considered by the Murphy-Vance technique to be central business i n character. 2 3. "Block-fronts" rather than "blocks" were used as a basis f o r determining areal unit of land use. The use of blocks was rejected because of the v a r i a t i o n i n uses often found i n a single block seemed to be excessive. Neutze has stated: "The a c c e s s i b i l i t y and character of an area can change i n a few blocks i n the central area."3 Observation of land use i n the downtown area makes i t obvious that the character of a block may undergo vast change by merely turning the corner. Furthermore, what was wanted i n subsequent analysis was a unit of areal measurement for which v a l i d comparisons could be made. The most common units used i n other studies of a s i m i l a r type have been i n d i v i d u a l buildings or blocks. The reason for r e j e c t i n g blocks as a unit of areal measurement has Murphy and Vance (1967), p. 209. 'Neutze (1968) , p. 5. R M - 4 C D - i C O M P K F . t i t M S I V C O E V H cc.v.tifT D I S T R I C T P A R K I M G D ' S T m c r C M - ! C O M M C H C I A L D ! S T P I C T C M - 2 C . ' J M V L t ' C I A L Ut± T M I C T I N C l L ' C . I R I A L 0 1 \ T M I C T I M O U S T R I A L D I M R I C T COMMERCIAL ZONING IN THE DOWNTOWN PENINSULA - 19 70 114 already been given above. Individual buildings are not a very s a t i s f a c t o r y unit of comparison because of the great variations i n size of bui l d i n g that e x i s t . A trade-off had to be made between v a r i a t i o n i n the size of areal unit u t i l i z e d (individual buildings) and variations i n the character of the areal unit u t i l i z e d (blocks). A suitable compromise, block-fronts , was chosen as being superior to either of the two other units of areal measurement. By combining the f l o o r space of buildings there i s l i k e l y to be less v a r i a t i o n i n siz e than i f i n d i v i d u a l buildings were used, and also block-fronts are probably more homogeneous i n character than are entire blocks. 4. Grouped f l o o r space data rather than exact f l o o r space data was used i n c a l c u l a t i n g f l o o r space r a t i o s . Grouping of f l o o r space data was ca r r i e d out i n 1000 square feet ranges. That i s , firms of from 1 to 1000 square feet were considered to be of equal s i z e , and s i m i l a r l y those from 1001 to 2000 square feet, and so on. 5. Use was made of a map recently published by the City Planning Department showing s i t e s with permanent buildings.^ This map enabled the distinguishing of Vancouver City Planning Department (1970), p. 9. 115 those s i t e s i n which redevelopment i s considered to be l i k e l y in> the future. This information was taken into account when delimiting the boundaries of the CBD. The d e f i n i t i o n of o f f i c e and r e t a i l a c t i v i t i e s used i n the d e l i m i t i n g of the CBD corresponds to that developed by the City Planning Department i n i t s 1970 land use study.^ (see Table A—1). An expanded d e f i n i t i o n of o f f i c e a c t i v i t i e s i s used i n subsequent analyses. The preliminary r e s u l t s of the modified Murphy-Vance technique u t i l i z e d are shown on Map A-4I.. A "T-shaped" area emerged, with the most intensive development located i n the area bounded by Burrard (west), Robson (south), Seymour (east), and the waterfront (north). Development to the east and west appears to be much more l i n e a r with develop-ment primarily upon Hastings and Pender Streets. The boundaries of the CBD f i n a l l y decided upon closely corresponds to the areas meeting the modified Murphy-Vance c r i t e r i a . The main exception was made i n the "stem" of the "T-shaped" area. Smythe St. seemed to form a natural boundary as the southern-most extreme of the CBD since south of t h i s street except for development along Granville and Burrard Streets there were few o f f i c e or r e t a i l establishments. Vancouver City Planning Department (1970 a ) . 116 TABLE A-l MAJOR HEADINGS OF S.I.C. CODE AS DEFINED BY THE CITY OF VANCOUVER Major Headings S.I.C. Numbers Included* Commercial/Retail .53,54,56,57,58,59,72,472 Commercial/Office 07 ,08,09,10,11,12,13,14,18,208,209,213,225,227,229, 231,234,24,26,28,29,336,249,255,264,461,471,48,49, 60,61,62,63,64,65,66,67,731,732,736,739,801,802,803, 804,807,809,81,89,91,92,93,94,990 Commercial/Services 733,734,735,76,781,782 Commercial/Wholesale 50,52 Commercial/Automotive 55,751,753,754 Light Industry 15,16,17,19,201,202,204,233,238,239,25,27,31,342,344, 346,347,353,357,359,366,369,37,38,39 Heavy Industry 331,332,339 Transportation Industry 40,41,421,44,45,478 Storage 422 82,84 806 86 79 Public Community F a c i l i -ties Private Community F a c i l i -ties Institutions Amusement and Recrea-tional Services Vacant Buildings 991,992,993,994,995,996 Vacant Land 999 Under Construction 9991 Parking Structure 752 Parking Surface 7521 +Residential-Single Family & Duplex ^Residential Apartment 882 +Hotel-Transient & Residential +Rooming House 702 +Movie Theatres 783 881 701 *See Appendix F for interpretation of S.I.C. numbers. +Floor space data not available. "1" as fourth d i g i t means open land use. Source: Vancouver City Planning Department (1970) , Land Use Downtown  Vancouver, 1970. Technical Report. P. 4-5. Approximate extent of CBD I n d i c a t e d by Murphy-Vance Technique H APPENDIX E 118 D e f i n i t i o n of O f f i c e Establishments The procedure by which o f f i c e establishments were i d e n t i f i e d i n the Vancouver CBD involved three steps. 1. The d e f i n i t i o n of major land uses i n the Downtown Peninsula using S.I.C. numbers developed by the City Planning Department was considered a f i r s t approximation.* (see Table A-I, Appendix D) i . A l l "Commercial/Retail," "Heavy Industry," "Storage," "Private Community F a c i l i t i e s , " "Vacant Buildings," "Vacant Land," "Under Construction," "Parking Structures," "Parking Surface," and a c t i v i t i e s for which no f l o o r space data was available were eliminated from further consideration, i i . Those S.I.C. numbers, used by the City to define "Commercial/Office" (except for S.I.C. numbers 899 (Miscellaneous Services, not Elsewhere C l a s s i f i e d ) and 990 (Non-Classifiable Establishment)) were accepted as such, i i i . The remaining S.I.C. numbers underwent further screening as described below. The preceeding delimiting of the boundaries of the Vancou-ver CBD (see Appendix C) had the b e n e f i c i a l s i d e - e f f e c t of reducing the number of S.I.C. types that needed to be considered. This arose because apparently a number of types of a c t i v i t i e s occur outside the CBD but not within i t . 119 2. The i n i t i a l screening of those a c t i v i t i e s whose function was s t i l l uncertain involved two simple t e s t s , i . A l l a c t i v i t i e s occupying more than 10,000 square feet of f l o o r area were excluded. The f l o o r space data for each establishment was supplied by f l o o r . An o f f i c e occupying more than a single f l o o r was reported as two or more separate records or pieces of data. No o f f i c e b u i lding i n Vancouver has more than 10,000 square feet on a single f l o o r , i i . . One study on r e t a i l linkages defined a l l ground-f l o o r a c t i v i t i e s as r e t a i l a c t i v i t i e s . ! The reverse was done i n t h i s case. That i s , estab-lishments found above the ground f l o o r were assumed i n i t i a l l y t o be o f f i c e s . In screening the S.I.C. numbers an ar b i t r a r y cut-off point of 50% was s e l e c t e d — i . e . at least 5.0% of the establishments of a p a r t i c u l a r S.I.C. number had to be located above the ground f l o o r — t o be included as an o f f i c e . 3.. The f i n a l screening involved taking a v i s u a l inspection of the geographic d i s t r i b u t i o n of these establishments. High concentrations of questionable types of o f f i c e establishments were viewed with suspicion, p a r t i c u l a r l y when located near the periphery of the CBD. Getis and Getis (1968), pp. 317-332. 120 In most cases i t was r e l a t i v e l y easy to resolve t h i s p a r t i c u l a r problem by v i s i t a t i o n of the s i t e s i n question. These s i t e s were not considered i n the subsequent analysis when they proved to be predominantly non-office i n character. Though undoubtedly some establishments which are not o f f i c e s are s t i l l included and also some establishments which are o f f i c e s have been excluded by t h i s screening process these should represent only a minor proportion of the t o t a l data and therefore not materially a l t e r the r e s u l t s of the subsequent analysis. Following t h i s screening process approximately 125 S.I.C. numbers were distinguished as being o f f i c e establishments. These are noted i n Appendix F. There was.-.a large range i n the number of establishments included under each of the S.I.C. numbers. In some cases, there was only a single establishment of a p a r t i c u l a r type, while i n others there were several hundred. Goddard, i n his study of o f f i c e location patterns i n London, encountered a similar, d i f f i c u l t y i 1 Any c l a s s i f i c a t i o n should attempt to throw an even mesh over the phenomena that i t seeks to categorize: no one group should be more heterogeneous than another. This c r i t e r i o n i s d i f f i c u l t to s a t i s f y as i t i s also e s s e n t i a l to maintain a balance between the number of classes and the number of observations within each. "•"Goddard (1968) , p. 72. 121 To p a r t i a l l y overcome t h i s d i f f i c u l t y , the S.I.C. numbers of o f f i c e s performing si m i l a r l i n e s of a c t i v i t i e s were collapsed into fewer, more homogeneous classes of o f f i c e s . Despite t h i s pooling of o f f i c e s engaged i n s i m i l a r types of a c t i v i t i e s c e r t a i n class of o f f i c e s were s t i l l poorly represented. A r b i t r a r i l y , i t was decided that classes of o f f i c e s with fewer than f i v e establishments be excluded from further consideration since t h e i r i n c l u s i o n could lead to spurious correlations a r i s i n g . As well, i t was noted that i n most cases^the block fronts facing major thoroughfares comprised the majority of o f f i c e establishments. Because of t h i s f a c t , i t was a r b i t r a r i l y decided to ignore block faces which housed fewer than 5 o f f i c e s . The location and coding of the block fronts used i n subsequent analyses i s indicated i n Map A-5. 123 APPENDIX F S.I.C. Code AGRICULTURE, FORESTRY & FISHERIES  Major Group 01.—Agriculture Production *011 F i e l d Crops *013 Livestock Major Group 0 7 .— A g r i c u l t u r a l Services & Hunting & Trapping *071 A g r i c u l t u r a l Services, Except Animal Husbandry and H o r t i c u l t u r a l Services *073 H o r t i c u l t u r a l Services Major Group 08.—Forestry *085 Forestry Services *086 Gathering of Forest Products, Not Elsewhere C l a s s i f i e d *089 Miscellaneous Forestry Services Major Group 09.—Fisheries *098 Fish Hatcheries, Farms, & Preserves MINING Major Group 10.— Metal Mining *101 Iron Ores *102 Copper Ores *104 Gold and S i l v e r Ores *106 Ferroalloy Ores, Except Vanadium *108 Metal Mining Services *109 Miscellaneous Metal Ores Major Group 13.—Crude Petroleum and Natural Gas *131 Crude Petroleum and Natural Gas *138 O i l and Gas F i e l d Services Major Group 14.--Mining and Quarrying of Non-Metallic Minerals, Except Fuels *141 Dimension Stone *142 Crushed & Broken Stone, Including Riprap *148 Non-Metallic Minerals (except Fuel) Services *149 Miscellaneous Non-Metallic Minerals, Except Fuels CONTRACT CONSTRUCTION Major Group 15.—BuTTding Construction—General Contractors *151 General Building Contractors 124 S.I.C. Code (cont'd) Major Group 16—Construction Other Than Building C o n s t r u c t i o n — General Contractors •162 Heavy Construction, Except Highway & Street Construction Major Group 17.—Construction - Special Trade Contractors *171 Plumbing, Heating, and A i r Conditioning *173 E l e c t r i c a l Work MANUFACTURING Major Group 20.—Food & Kindred Products *204 Grain M i l l Products *208 Beverages *209 Miscellaneous Food Preparations and Kindred Products Major Group 2 2 . — T e x t i l e M i l l Products *225 Kn i t t i n g M i l l s *229 Miscellaneous T e x t i l e Goods Major Group 23.--Apparal & Other Finished Products Made from : Fabrics & Similar Materials *231 Men's, Youths' & Boys' S u i t s , Coats, and Overcoats *233 Women's, Misses', and Juniors' Outerwear *238 Miscellaneous. Apparal and Accessories *239 Miscellaneous Fabricated T e x t i l e Products Major Group 24.—Lumber & Wood Products, Except Furniture *241. Logging Camps and Logging Contractors *242 Sawmills and Planing M i l l s *249 Miscellaneous Wood Products Major Group 25.—Furniture and Fixtures 252 O f f i c e Furniture 254 P a r t i t i o n s , Shelving, Lockers, and O f f i c e r & Store Fixtures 259 Miscellaneous Furniture and Fixtures Major Group 26.—Paper & A l l i e d Products *262 Paper M i l l s , Except Building Paper M i l l s *264 Converted Paper & Paperboard Products, Except Containers and Boxes Major Group 2 7 . — P r i n t i n g , Publishing,' and A l l i e d Industries *271 Newspapers: Publishing, Publishing and Pr i n t i n g 273 Books *274 Miscellaneous Publishing *275 Commercial P r i n t i n g 276 Manifold Business Forms 278 Blankbooks, Loose Leaf Binders, and Bookbinding & Related Work *279 Service Industries for the Pr i n t i n g Trade 125 S.I.C. Code (cont'd.) Major Group 28.—Chemicals and A l l i e d Products 289 Miscellaneous Chemical Products Major Group 29.—Petroleum Refining and Related Industries 291 Petroleum Refining Major Group 31.—Leather and Leather Products 314 Footwear, Except Rubber Major Group 33.—Primary Metal Industries 331 Blast Furnaces, Steel Works, and Ro l l i n g and Fi n i s h i n g M i l l s Major Group 3 4 . — F a b r i c a t e d Metal Products, 1 Except Ordnance, Machinery & Transportation Equipment 347 Coating, Engraving, and A l l i e d Services Major Group 3 6 . — E l e c t r i c a l Machinery, Equipment, and Supplies 364 E l e c t r i c Lighting and Wiring Equipment *366 Communication Equipment *369 Miscellaneous E l e c t r i c a l Machinery, Equipment, and Supplies Major Group 3 8 . — P r o f e s s i o n a l , S c i e n t i f i c , and Contro l l i n g Instruments: Photographic & O p t i c a l Goods, Watches & Clocks 381 Engineering, Laboratory, & S c i e n t i f i c & Research Instruments & Associated Equipment *384 Surgical, Medical, and Dental Instruments and Supplies *387 Watches, Clocks, Clockwork Operated Devices, and Parts Major Group 39.—Miscellaneous Manufacturing Industries *391 Jewelry, Silverware, and Plated Ware 395 Pens, Pencils, and Other O f f i c e and A r t i s t s ' Materials *396 Costume Jewelry, Costume Novelties, Buttons, and Miscellaneous Notions, Except Precious Metal *399 Miscellaneous Manufacturing Industries TRANSPORTATION, COMMUNICATIONS, ELECTRIC, GAS AND SANITARY  SERVICES Major Group 40.—Railroad Transportation *401 Railroads *404 Railways Express Service Major Group 42.—Motor Freight Transportation and Warehousing 421 Trucking, Local and Long Distance .422 Public Warehousing 126 S.I.C. Code (cont'd.) Major Group 44.—Water Transportation *4 41 Deep Sea Foreign Transportation *445 Local Water Transportation *446 Services Incidental to Water Transportation Major Group 45.—Transportation by A i r 451 A i r Transportation, C e r t i f i c a t e d Carriers 458 Fixed F a c i l i t i e s - i a n d Services Related to A i r Transportation Major Group 46.—Pipe Line Transportation 461 Gas Pipe Lines, except Natural Gas Major Group 47.—Transportation Services *471 Freight Forwarding *472 Arrangement of Transportation Major Group 48.—Communications *481 Telephone Communication (Wire or Radio) *482 Telegraph Communication (Wire or Radio) *483 Radio Broadcasting and Televi s i o n *489 Communication Services, Not Elsewhere C l a s s i f i e d Major Group 49 . — E l e c t r i c , Gas & Sanitary Services *492 Gas Companies and Systems *493 Combination Companies and Systems *495 Sanitary Services WHOLESALE & RETAIL TRADE Major Group 50.—Wholesale Trade *502 Drugs, Chemicals, & A l l i e d Products *503 Piece Goods, Notions, Apparel *504 Groceries and Related Products *505 Farm Products-Raw Materials *506 E l e c t r i c a l Goods *507 Hardware, and Plumbihgc& Heating Equipment & Supplies *508 Machinery, Equipment, and Supplies *509 Miscellaneous Wholesalers Major Group 5 2 . — R e t a i l T r a d e — B u i l d i n g Materials, Hardware, & Farm Equipment Dealers 522 Plumbing, Heating & A i r Conditioning Equipment Dealers 523 Paint, Glass, and Wallpaper Stores 524 E l e c t r i c a l Supply Stores 525 Hardware and Farm Equipment 127 S.I.C. Code (cont'd.) Major Group 5 3 . — R e t a i l Trade—General Merchandise 531 Department Stores 532 Mail Order Houses 533 Variety Stores 539 Miscellaneous R e t a i l Stores Major Group 54.--Retail Trade--Food Stores 541 Grocery Stores 542 Meat and Fish (Sea Food) Markets 543 F r u i t Stores and Vegetable Markets 544 Candy, Nut, and Confectionery Stores 546 R e t a i l Bakeries 549 Miscellaneous Food Stores Major Group 55.—Automotive Dealers & Gasoline Service Stations 551 Motor Vehicle Dealers (New and Used Cars) 554 Gasoline Service Stations 559 Miscellaneous A i r c r a f t , Marine, & Automotive Dealers Major Group 56.--Retail Trade—Apparel & Accessory Stores 561 Men's & Boys' Clothing & Furnishings Stores 562 Women's Ready-to-Wear Stores 563 Women's Accessory and Specialty Stores 564 Children's and Infants' Wear Stores 566 Shoe Stores 567 Custom T a i l o r s 568 F u r r i e r s and Fur Shops 569 Miscellaneous Apparel & Accessory Stores Major Group 5 7 . — R e t a i l Trade--Furniture, Home Furnishings, and Equipment Stores 571 Furniture, Home Furnishings, and Equipment Stores, except Appliances 572 Household Appliance Stores 573 Radio, Te l e v i s i o n , and Music Stores Major Group 5 8 . — R e t a i l Trade--Eating and Drinking Places 581 Eating and Drinking Places Major Group 59.--Retail Trade—Miscellaneous Retail 1 Stores 591 Drug Stores and Proprietory Stores 592 Liquor Stores 593 Antique Stores and Second-Hand Stores 594 Book and Stationery Stores 595 Sporting Goods Stores and Bicycle Shops 597 Jewelry Stores 599 R e t a i l Stores, Not Elsewhere C l a s s i f i e d 128 S.I.C. Code (cont'd.) FINANCE, INSURANCE & REAL ESTATE  Major Group 60.--Banking *602 Commercial and Stock Saving Banks *605 Establishments Performing Functions Closely Related To Banking *609 Banks, A l l Kinds and Establishments Performing Functions Closely Related to Banking Major Group 61.—Credit Agencies Other Than Banks *611 Rediscount & Fxnancxng Instxtutxons for Credit Agencies Other than Banks *614 Personal Credit I n s t i t u t i o n s *615 Business Credit I n s t i t u t i o n s *616 Loan Correspondents and Brokers *619 Mortgage Companies, Agents and Brokers Major Group 62.—Security & Commodity Brokers, Dealers, Exchanges &: Services *621 Security Brokers, Dealers & F l o t a t i o n Companies *622 Commodity Contracts Broker's & Dealers *623 Security and Commodity Exchanges *624 *628 Services A l l i e d with the Exchange of Securities or Commodities *629 Security and Commodity Brokers, Dealers and Exchanges Major Group 63.—Insurance Carriers *631 L i f e Insurance *632 Accident and Health Insurance *636 T i t l e Insurance Major Group 64.—Insurance Agents, Brokers and Service *641 Insurance Agents, Brokers and Service *649 Insurance Companies, Agents, Brokers and Services Including Adjusters Major Group 65.—Real Estate *651 Real Estate Operators (Except Developers) and Lessors *653 Agents, Brokers and Developers *655 Subdividers and Developers *659 Real Estate Agents, Broker Managers, T i t l e Abstractor's Sub Dividers, Developers and Operative Builders Major Group 66.—Combinations of : Real Estate, Insurance, Loans, Law Offices ; *661 Combinations of Real Estate, Insurance, Loans, Law Offices 129 S.T.C. Code (cont'd.) Major Group 67.—Holding and Other Investment Companies *671 Holding Companies *672 Investment Companies *679 Miscellaneous Investing Ins t i t u t i o n s SERVICES Major Group 70.—Hotels, Rooming1 Houses, Camps, and Other Lodging 1 Places 701 Hotels, Tourist Courts and Motels Major Group 72.—Personal Services 721 Laundries, Laundry Services & Cleaning and Dyeing Plants 722 Photographic Studios, Including Commercial Photography 723 Beauty Shops 724 Barber Shops 725 Shoe Repair Shops, Shoe Shine Parlors, & Hat Cleaning Shops 729 Miscellaneous- Personal Services Major Group 73 . —Miscellaneous Business 1 Services *731 Advertising *732 Consumer Credit Reporting Agencies, Mercantile Reporting *733 Duplicating, Addressing, Blueprinting, Photocopying, Mailing, Mailing L i s t & Stenographic Services *734 Services to Dwellings and Other Buildings *735 News Syndicates *736 Private Employment Agencies *739 Business Services, Not Elsewhere C l a s s i f i e d Major Group 75. —Automobile Repair 1, Automobile 1 Services and Garages 751 Automobile Rentals, without Drivers 752 Automobile Parking 753 Automobile Repair Shops Major Group 76.--Miscellaneous Repair 1 Services 762 E l e c t r i c a l Repair Shops 763 Watch, Clock and Jewelry Repair 769 Miscellaneous Repair Shoes and Related Services Major1 Group 79. —Motion Pictures 781 Motion Picture Production & D i s t r i b u t i o n Major Group 79.—Amusement & Recreation Services, Except Motion Pictures 791 Dance Ha l l s , Studios and Schools 792 Theatrical Producers (except Motion P i c t u r e s ) , Bands, Orchestras and Entertainers 130 S.I.C. Code (cont'd.) 793 Bowling Alleys & B i l l i a r d & Pool Establishments 794 Sports Promoters & Commercial Operators & Miscellaneous Amusement & Recreation Services Major Group 80. —Medical & Other Health Services *801 Offices of Physicians and Surgeons *802 Offices of Dentists and Dental Surgeons *803 Offices of Osteopathic Physicians *804 Offices of Chiropractors *807 Medical and Dental Laboratories *809 Health & A l l i e d Services, not Elsewhere C l a s s i f i e d Major Group 81.—Legal Services *811 Legal Services Major Group 82.--Educational Services 823 L i b r a r i e s & Information Centers 824 Correspondence Schools & Vocational Schools *829 Schools & Educational Services, Not Elsewhere C l a s s i f i e d Major Group 84.--Museums, Art G a l l e r i e s , Botanical- & Zoological Gardens 841 Museums and Art G a l l e r i e s Major Group 86. —Nonprofit Membership Organizations *861 Business Associations *862 Professional Membership Organizations *863 Labour Unions & Similar Labour Organizations *864 C i v i c , Social and Fraternal Associations *865 P o l i t i c a l Organizations *866 Religious Organizations *867 Charitable Organizations *869 Nonprofit Membership Organizations, Not Elsewhere C l a s s i f i e d Major Group 89.—Miscellaneous Services *891 Engineering and A r c h i t e c t u r a l Services *893 Accounting, Auditing and Bookkeeping Services GOVERNMENT Major Group 91.—Federal Government *910 Federal Government Major Group 92.--Provincial Government *920 P r o v i n c i a l Government Major Group 94.--International Government *940 International Government 131 S.I.C. Code (cont'd.) VACANT 991 Commercial Of f i c e 992 Commercial R e t a i l 993 Commercial Wholesale 994 I n d u s t r i a l 996 Residential 999 Vacant Land OTHER 990 Non-Classifiable Establishment Denotes included i n d e f i n i t i o n of o f f i c e a c t i v i t i e s u t i l i z e d i n t h i s study. (note: only those uses found i n the CBD have been included). 132 APPENDIX G Weighted Percentage D i s t r i b u t i o n of Offices With the exi s t i n g data, two "obvious p o s s i b i l i t i e s existed for portraying the d i s t r i b u t i o n of o f f i c e s i n each of the block-fronts: one, to u t i l i z e the frequency of occurrence of each type of o f f i c e establishment, and second, to consider the f l o o r area i n square feet used for each type of o f f i c e a c t i v i t y . In each case, t h i s would have required taking the proportion of each class of o f f i c e and expressing t h i s as a percentage of the t o t a l number of o f f i c e s , or of the t o t a l o f f i c e f l o o r space, i n each of the block-fronts. However, i t was f e l t that neither method of showing the composition of each block-front was s a t i s f a c t o r y . Use of frequency provided no idea of the size differences e x i s t i n g between o f f i c e s a large o f f i c e would have the same significance as a smaller o f f i c e . Use of o f f i c e f l o o r area, on the otherhand, did not s a t i s f a c t o r i l y take into account the r e l a t i v e frequency with which a p a r t i c u l a r type of o f f i c e occurred. In an attempt to incorporate the desirable aspects of each of these methods, "class-marks" of ranges of o f f i c e f l o o r space were used. The class-marks were set for 1000 square foot ranges (eg. 1-1000 sq. f t . , 1001-2000 sq. f t . , etc.) Thus, an o f f i c e of 1500 sq. f t . , for example, would be given twice the s i g n i f i c a n c e of an o f f i c e of 1 than 1000 sq. f t . Percentages were then calculated for each block-front by taking the weighted d i s t r i b u t i o n of each class of o f f i c e as a proportion of the t o t a l weighted d i s t r i b u t i o n of o f f i c e s i n each block-front. 134 APPENDIX H The Arc Sine Transformation for Percentage Data A fundamental assumption of most s t a t i s t i c a l t e s t i n g i s that observations assume a multivariate normal d i s t r i b u t i o n - — g r a p h i c a l l y represented as a bell-shaped curve-—around the mean value. Haggett notes that almost invariably the s t a t i s t i c a l d i s t r i b u t i o n s of geographic populations do not c l o s e l y correspond to a normal d i s t r i b u t i o n . 1 The presence of a high proportion of low and high values would indicate a strong skewness away from a normal d i s t r i b u t i o n i n t h i s study as w e l l . One method to circumvent t h i s d i f f i c u l t y i s to analyze not the o r i g i n a l data, but an appropriate trans f o r -mation of i t . According to Haggett an appropriate transfor-mation " s t a b i l i z e s the variations and makes the d i s t r i b u t i o n more nearly normal so that conventional parametric tests can be applied without d i f f i c u l t y . " 2 There are, however, a great number of d i f f e r e n t transformation functions possible to normalize or s t a b i l i z e data (eg. log, square root, log-log, etc.) Goddard u t i l i z e d a log 10 transformation i n his study of o f f i c e location patterns i n London. The argument for an arc sine square root transformation for percentage data, •"•Haggett (19691, p. 287. 2Haggett (1969), p. 287. 3Goddard (1968), p. 72. 135 which has been adopted i n t h i s study, has been presented by 4 Krumbein. A d d i t i o n a l l y , i t s value i n preference to raw percentage data i n studies of land use have been indicated by a number of other studies. B a s i c a l l y , the e f f e c t of an arc sine square root transformation i s to s t a b i l i z e variance. Percentage data has a range of from 0% to 100%. With an arc sine square root transformation, the possible range becomes from 0° to 90°. The approximate effects of t h i s transformation are indicated on the following graph. (See F i g . A - l ) . Raw percentage data i s generally contoured on an arithmetic i n t e r v a l s c a l e . However, as Klumbein points out, there i s some implication that a change from 50 to 55 percent, for example, i s not as s i g n i f i c a n t as a change from 5% to 10%. That i s , equal differences along a percentage scale are not necessarily of equal si g n i f i c a n c e i n i n t e r p r e t a t i o n . Once the raw percentage data i s transformed using the arc sine square root the change from 50% to 55% becomes much less important than a change from 5% to 10% but s t i l l remains more important than a change from 5% to 6%. That i s , by transforming percentages to t h e i r arc sine equivalents and 4Krumbein (1957), pp. 293-297. 5 See Haggett (1969), p. 288 for summaries of a number of studies i n which t h i s transformation has been used. 136 FIGURE A - l THE ARC SINE SQUARE ROOT TRANSFORMATION FOR PERCENTAGE DATA 10 20 30 40 50 60 70 80 90 (arc sine, 0 ° ) (Tables for converting percentages to t h e i r arc sines i n degrees are given i n S t a t i s t i c a l  Methods (G.W. Snedecor. 4th ed., Iowa State College Press, Ames, 1946. p. 449) and S t a t i s t i c a l  Tables for B i o l o g i c a l , A g r i c u l t u r a l and Medical  Research (R.A. Fisher and F. Yates, Edinburgh 1957. Table X, p. 20)). 137 contouring on an equal arc sine i n t e r v a l , a "weighting factor" that appears to be appropriate for percentage data i s provided. The arc sine square root transformation from percentage data requires a three step procedure: 1. the percentage i s expressed as a proportion, 2. i t s square root i s extracted, 3. the angle © whose sine i s equal to the square root i s found. Por example, the percentage 33.3% expressed as a proportion becomes 0.333. The square root of t h i s i s 0.577. The angle 8 whose sine i s 0.577 i s 35.2°. The number 35.2 i s the arc sine square root transform of 33.3%. 

Cite

Citation Scheme:

        

Citations by CSL (citeproc-js)

Usage Statistics

Share

Embed

Customize your widget with the following options, then copy and paste the code below into the HTML of your page to embed this item in your website.
                        
                            <div id="ubcOpenCollectionsWidgetDisplay">
                            <script id="ubcOpenCollectionsWidget"
                            src="{[{embed.src}]}"
                            data-item="{[{embed.item}]}"
                            data-collection="{[{embed.collection}]}"
                            data-metadata="{[{embed.showMetadata}]}"
                            data-width="{[{embed.width}]}"
                            async >
                            </script>
                            </div>
                        
                    
IIIF logo Our image viewer uses the IIIF 2.0 standard. To load this item in other compatible viewers, use this url:
http://iiif.library.ubc.ca/presentation/dsp.831.1-0302438/manifest

Comment

Related Items