Summary of Key Points
This article reveals a fundamental shift in the logic behind the formation of city centers: Over the past two decades, city centers have attracted people based on "efficiency" (concentration of brands, convenient transportation, and fast transaction speeds). However, efficiency has evolved from a scarce advantage to a basic standard, and now city centers rely on "relationship density" (the frequency of interactions between people and opportunities for engagement) to attract visitors. The corresponding form of commercial real estate has shifted from traditional shopping centers to "public facility-based commerce," with value measurement criteria shifting from area and rent to indicators that focus on time spent and visitor repetition rates.
1. Past City Centers: Built on Efficiency
The development of past city centers, such as Beijing's CBD, was centered around the principle of "efficiency first." During the industrialization and consumption expansion periods, everyone aimed to complete transactions as quickly as possible:
- Shopping centers concentrated brands to reduce the time spent making choices;
- Transportation hubs were strategically located to shorten travel distances;
- Business formats were standardized (such as chain restaurants and department stores) to facilitate easy replication and expansion.
At that time, the quality of a commercial project could be assessed using the formula "location × transportation × size." These locations, due to their efficiency, attracted businesses, capital, and crowds, gradually becoming city centers (for example, Dabeiyao evolved from a factory area into a CBD).
2. The Old Logic No Longer Works: Efficiency Becomes the Standard
With the widespread use of mobile internet and instant delivery services, people no longer need to shop in person; they can place orders on their phones and have goods delivered directly to their homes. Brand information is now easily accessible online. Therefore, "efficiency" is no longer a unique selling point for a commercial project but has become a basic requirement for all businesses—just as smartphones were once rare, speed is no longer a competitive advantage.
As a result, projects that rely solely on transportation and physical amenities, despite having good conditions, fail to attract people and do not thrive because they are not aligned with the new trajectory of urban development.
3. The New Logic: Relationship Density Is the New Magnet
The core factor in today's city centers is "relationship density"—the frequency and intensity of interactions between people within a space. This includes the presence of stable social activities and ongoing public events that create a sense of emotional connection. For example, the Gan Bang Navy Department in Singapore integrates elderly care, healthcare, commerce, and community gardens. Residents can use these facilities not only for practical purposes but also to participate in neighborhood activities and chat with friends. Such relationships are difficult to replace and are more resilient than mere traffic flow.
4. The New Trend: Public Facility-Based Commerce
To meet the demand for relationship density, "public facility-based commerce" has become popular. These projects focus on providing spaces for people to stay and interact, rather than just selling goods:
- Examples include Marutai no Oka in Tokyo, which features a central green space that combines parks, cultural facilities, offices, residences, and shops, allowing people to stroll, participate in activities, and enter with low barriers;
- The Exchange TRX in Kuala Lumpur attracts families with its central park and water play areas.
This type of commerce represents an upgrade in efficiency: Instead of competing on transaction speed, it focuses on the length of time people spend in the space. The longer people stay, the more interactions occur, leading to increased consumption (such as having a coffee or making a purchase).
5. The Shift in Value Measurement
In the past, commercial real estate was evaluated based on "floor efficiency" (how much money can be earned per square meter) and rent. Now, the focus is on "time spent," "visitor repetition rates," and "interaction frequencies":
- Commonality is key: creating barriers-free entry points (such as free parks) to bring together different groups of people;
- Extending the length of time people spend in the space through events (such as markets and exhibitions);
- Building long-term relationships: projects with high visitor repetition rates have more stable business performance.
In the future, valuable assets will not be those with the highest efficiency but those that provide the densest connections between people, the longest stays, and the strongest relationships.
Conclusion
Cities will continue to gather people, but the reasons for doing so have changed. In the industrial era, cities gathered around production; in the consumption era, they gathered around transactions. In the future, they will gather around relationships, identity, and spiritual experiences. When efficiency becomes the standard, what truly sets one place apart is its ability to support complex human interactions. Projects that offer spaces for people to linger are the driving force behind a city's sustained growth, as the vitality of a city always lies in the encounters between people.