Death of Central Business Districts

After the 1920s, when central business districts dramatically decreased, the U.S. experienced issues such as vacant stores, filthy streets, and high crime rates. City planners effectively used redevelopment tactics to keep these city centres alive. What can Germany learn from the U.S. in this regard, given that it is currently dealing with similar problems?

What is a Central Business District?

A central business district or short CBD is the part of a city or town where most offices and businesses are. According to George and Athena Kottis, it is a multidimensional entity constituting many functions, such as retail trade, professional services, entertainment facilities, and cultural and aesthetic attractions. Kent Robertson adds that they weren't formed in a precise area but rather developed over time in response to shifting social, technological, and economic developments. The term began to be used synonymously with the word downtown in the 1930s.

The Development of Central Business Districts

According to Michael Conzen, in the middle of the 19th century, the practice of fixed-shop retailing spread throughout American towns and cities. The main streets evolved into the retail hub of this activity, and Main Street has remained in thousands of small towns all over the country. They vividly represent the pre-automobile consumer scene, which was based on family needs and was sized for pedestrians. At the same time, downtowns started to appear in larger cities. Robert Fogelson notes that retailers, bankers, realtors, lawyers and others settled downtown. Court, government agencies, post offices, hotels and restaurants were also located there. Soon, central business districts became highly crowded because of the people and stores. They became the most accessible parts of the city thanks to the streetcar system's innovative layout, which brought thousands of workers, shoppers, and tourists there. Moreover, destinations were almost always within easy walking distance. In 1887, half a million people travelled to New York downtown every morning to attend to their business. A key factor in the evolution of the American metropolis was the emergence of downtowns. By the late 19th century, this transition had ended in the majority of large cities.

The Decline of Central Business Districts

After the 19th century, central business districts steadily declined. According to John McDonald, the population changes in demand factors, such as the population increase on the urban fringe, the rise in auto ownership, and population decentralization, were the main causes of CBD decline. Kent Robertson adds that, particularly since the Second World War, the ongoing decentralization has moved downtown functions to the neighboring suburbs. To accommodate numerous enterprises that couldn't afford the high costs and to meet the growing demand for goods and services, outlying business districts arose, leaving empty spaces in the central business center. As downtown lost its attractions and the distances between activities grew, making them less walkable, fewer people commuted by mass transit. Walking became riskier due to the heavy traffic and downtown crime as streets widened to accommodate more vehicles. Walking also became less enjoyable due to the decrease in on-street activity. In 1954, just 20% of all retail transactions in urban areas nationwide was made downtown; by 1977, that percentage had dropped to 4%. Although they also struggled with the steady loss of residents and jobs, larger cities generally succeeded in maintaining at least some position in their regional economies. From 1960 to 1977, job growth in center cities was just 70%. On the other hand, the suburbs saw a 95% rise in employment. John Jakle and David Wilson point out that the population in central cities declined as well. In the 1950s, 59% of the population lived in the city and 41% in the suburbs. By the 1980s, the numbers had reversed.

Downtown Redevelopment Strategies

The government took several measures to save the dying central business districts. Kent Robertsons list the major downtown redevelopment strategies that city planners developed. All of these actions were taken collectively, especially by larger cities, rather than individually.

1. Pedestrianization

extend walkways
enhance security and safety
add more and nicer seating areas
building grade-level pedestrian malls or above-grade skywalk systems to separate pedestrians from automobile traffic

2. Indoor Shopping Centers

construction of indoor malls in the downtown area in an effort to compete with the suburbs
carefully considered retail mix that included well-known national chains and a pleasant, secure, climate-controlled environment

3. Historic Preservation

downtown had a lot of attractive older buildings with unique architectural features
adaptive reuse, which involves converting buildings built for one function, like railroad terminals or banks, into another, such as festival marketplaces or restaurants
Downtown buildings or even entire districts were preserved

4. Waterfront Development

people are naturally drawn to the sight, sound, and feel of water, which is why waterfront construction frequently succeeds

5. Office Development

By adding more downtown office space, surrounding stores and restaurants gained more customers
office buildings form the building blocks of the downtown skyline
idea was to turn CBDs into centers for financial, administrative and professional services

6. Special Activity Generators

plan for visitors to spend more money at hotels, restaurants, and stores while also bringing life to the downtown streets at night and on weekends
large facilities, including convention centers, arenas, and stadiums, were constructed downtown to draw larger crowds of people, many of whom came from outside the metropolitan area

7. Transportation Enhancement

increase downtown accessibility via mass transit
due to its location at the heart of the transit network, downtown used to be the most accessible area of most cities
as fewer people took transit and went downtown, this relationship between downtown and transit became considerably less important
electric shuttle buses have been employed in several cities, like Denver, to quickly and quietly transport people into and around downtown
shuttlebuses connect with the city's regular transit routes
many American communities attempted to improve traffic flow because the automobile is the country's primary mode of transportation

What is driving the decline of German Central Business Districts?

As we already know what is driving the decline in American central business districts, let us take a closer look if these reasons also apply to German central business districts in German cities.

Due to online shopping, the coronavirus pandemic and higher rents in city centers in American cities, central business districts are declining more and more, so that less and fewer people are in the city centers. But do the reasons also apply to the decline of city centers in German cities? If not, what could then be the reasons?
Julia Erdmann, an architect and city planner blames many things for the decline of inner cities in Germany. First, the focus on the use of cars; many people can't imagine a city without cars anymore. However, cars need a lot of space, which complicates the construction of a more space-saving, healthier, cheaper, and faster alternative with a focus on social life and human closeness. Second, the modern way of life contributed to the construction of residential buildings in suburban cities, which automatically led to the building of shopping centers in suburban areas. Before the two World Wars, inner cities were a place to live, shop, have fun and work. Still, today inner cities have only three main functions: retail, offices, and administration. Moreover, the ongoing globalization led to the phenomenon that the same brands and chains of shops are being presented. Third, housing in inner cities has become impossible due to the global financial market. Real estate and properties are seen as products and objects of speculation, so inner cities have sold their own properties, which led to the effect that several inner cities lost their codetermination and framework for action.

Let's take a closer look at Recklinghausen, a city in Germany in North Rhine-Westphalia, which is nearly empty today and was famous for its inner city. It was one of Germany's oldest, most well-known, and most charming cities, as there hadn't been any outlets or the possibility of online shopping yet. The reasons for its decline and death are, on the one hand, the expanding online business due to the Corona pandemic and on the other hand, the intensive building of enormous shopping centers in the suburban areas. The consequences are fatal and lead to a dead inner city. But what can Germany do or eventually learn from the U.S. to prevent the further decline of more German inner cities? Or has Germany already found solutions for itself?

Measures in Germany and first solutions

Another city in Germany, which was nearly threatened with death, is Bad Münstereifel. It is also located in North Rhine-Westphalia. But what has the city done to prevent the death and decline of its inner-city?

Bad Münstereifel built and opened an outlet center in the middle of the city in 2014 in order to prevent the extinction of its own city center. The unique and first-of-its-kind plan was to turn a city into a shopping center by buying up one-third of the downtown retail space, which now belongs to the City Outlet Center. Brands such as Esprit, Jack Wolfskin and Lindt moved into the outlet center. It was a kind of an experiment to revitalize the downtown of Bad Münstereifel. It is, as the mayor says, "a romantic little town with picturesque half-timbered houses, a lively pedestrian zone with attractive stores and many lively cafés." In addition, long-vacant stores are suddenly welcoming customers again.

Another city in Germany, which is known as one of the world's smartest cities, is Hamburg. But what does a smart city exactly mean? What makes Hamburg's inner city a smart, lively city where living and working are possible? What does Hamburg do that other cities in Germany don't do?

The Smart City Index examines all German cities with more than 100,000 inhabitants to determine their smartness based on the key categories of administration, IT infrastructure, environment, mobility, and society.

One of the strategies of the Northern German harbor city is its comprehensive digital strategy by offering its visitors and citizens free Wi-Fi and charging points in some of the city's trains. Furthermore, the data platform and an Internet of Things network in Hamburg are impressively gaining attention. Another part of the digital strategy includes a live stream of the sessions of the city parliament, which can be watched with different participation tools, like the innovative digital citizen participation platform. Additionally, administrative transactions, as well as appointments for civil issues, can also be done digitally.

One of Hamburg's strengths as a smart city is its mobility. It is famous for its smart traffic management, smart parking and comprehensive car-sharing offer. What's also very alluring is a one-stop app that enables customers to purchase tickets and select the quickest route from all accessible forms of transportation.
Besides, what makes Hamburg a smart city is its large green spaces and innovative solutions for challenging rising water levels. A huge project called Magellan-Terrassen HafenCity Hamburg is an urban rehabilitation project planning to replace Hamburg's historic port warehouses with hotels, stores, offices, and residential areas.

Also, Julia Erdmann claims that Hamburg is one of the greatest cities in Germany because most of its citizens can afford to live in the city again. One main reason for this was that many neighborhoods in Hamburg were placed under a social preservation ordinance to prevent gentrification. This resulted in Hamburg's Neustadt becoming a heterogeneous, affordable, mixed, lively, and diverse inner city. Therefore, Julia Erdmann advises cities in which downtowns are being threatened with decline to ask themselves several questions in order to be able to individually and uniquely shape their own inner cities, like "what is actually typical for our city? Why do we exist as a city? What is our essence?".

Interview with a city planner

As the coronavirus dominated the whole globe, all kinds of personal interaction, like meeting up with friends or family members, were restricted. Meetings in the inner cities, going out into bars or restaurants or just strolling through the shopping malls were just impossible. Those restrictions and conversions of everyday life affected not only the social lives of many people but also the development and infrastructure of inner cities and central business districts of many cities in Germany.

So, the main question is: what can be done to change inner cities, to make them more attractive and lively again? And what to do with the huge empty buildings?

Luca Kist, a city planner, landscape architect and president of the advisory council of urban development in Saarbrücken, explains in an interview in the Saarbrücker Zeitung, published on 3rd March 2021, why central business districts and cities, especially the inner cities, must change to be attractive, lively, energetic, and dynamic cities again.

In the case of Saarbrücken, the capital city of the federal state Saarland, Luca Kist suggests that the empty buildings, like the huge erstwhile C&A building, should be used temporarily for pop-up-stores or start-up-stores so that local stakeholders can realize their business ideas. Taking this into account, the cities of the future should also provide a variety of shopping facilities as well as adventurous and exciting activities, starting with the preparation of transforming city trips of inner cities into full-time shopping experiences. Looking at Saarbrücken, Luca Kist wishes that visitors to the city should gain lots of experiences with gastronomy combined with a boat tour on the Saar. Furthermore, showrooms, click-and-collect, and flagship stores are ideas for future cities.

In addition to strengthening retail and the diversity of shopping options, he emphasizes increasing pedestrian zones and supporting bike zones, increasing bike traffic or slow-moving traffic so that there is less car traffic in downtown areas.

Saarbrücken’s inner city is just one of many inner cities of German cities with new ideas for the future.

In conclusion, Saarbrücken’s inner city is just one of many inner cities of German cities with new ideas for the future. Despite the ongoing decline of central business districts as well as the emptying and closing of shopping malls in the U.S. and Germany, it doesn't seem to affect the desire of the social behavior of human beings to go out and connect with other people. Where do we get this feeling other than going outside into the real world, for example, into the city centers or shopping malls nearby?

As a result, the cities themselves and their administrators are keen to find any solutions possible to bring people into the city centers again, no matter how obscure, risky, or crazy the ideas are. The main thing is to bring people together and create new, lively (shopping) experiences.