Skyscraper - Economic Rationale

Economic Rationale

Skyscrapers are usually situated in city centers where the price of land is high. Constructing a skyscraper becomes justified if the price of land is so high that it makes economic sense to build upwards as to minimize the cost of the land per the total floor area of a building. Thus the construction of skyscrapers is dictated by economics and results in skyscrapers in a certain part of a large city unless a building code restricts the height of buildings. Skyscrapers are rarely seen in small cities and they are characteristic of large cities, because of the critical importance of high land prices for the construction of skyscrapers. Usually only office, commercial and hotel users can afford the rents in the city center and thus most tenants of skyscrapers are of these classes. Some skyscrapers have been built in areas where the bedrock is near surface, because this makes constructing the foundation cheaper, for example this is the case in Midtown Manhattan and Lower Manhattan, in New York City, United States, but not in-between these two parts of the city.

Today, skyscrapers are an increasingly common sight where land is expensive, as in the centers of big cities, because they provide such a high ratio of rentable floor space per unit area of land.