Why is building factories in suburbs more profitable than in the centre of the city?

Question

I am doing my Geograohy Assignment and I only got 1 idea so far and that is : It costs less to buy a piece of land in the subsurbs than in the centre of the city.
Please help me!
Thanks

Answer 1

Many associated costs such as taxes, water, electricity are also cheaper.
Employees for factories tend to be unskilled or semiskilled. Hence it is easy to employ people from almost any area. This means that factories can be located where unemployment is high, and transport routes available leading to a lower cost more reliable workforce.
As a flow on from the land cost issue, lower costs allow factories to offer more parking and other facilities than in cities. This helps workers be more productive.
Building/changing infrastructure in cities can be difficult. You cannot just build a new access road through the middle of Manhattan.
Traffic issues in cities will mean it is harder to get supplies in and produce out.
Finally, local governments will often give new employers tax breaks to bring jobs to thier areas. If a factory is built in an area where unemployment is high (already a bonus for the factory) the local government will often give a tax break to the factory. Cities with large numbers of employers do not need to do this to attract them.

Answer 2

More people live in the suburbs therefore workers can be employed at a lower rate than in the city and since wages are lower, profits are higher for factories.

Answer 3

There could be insurance issues also. Properties in the city may be more likely to be robbed, damaged, burned, etc. Crime makes it more problematic in the city. I know retailers in the city have to charge more for their products just to hedge all the loss associated with shoplifting and other forms of theft.

Answer 4

I would outright say tax purposes because in the inner city the expenditures beyond property are higher in association to downtown, tourists attraction.

Answer 5

Land is in short supply & high demand in the city, so costs more. There is more land & less demand in the suburbs, so it is cheaper

Answer 6

The property taxes are less in areas with lower population density.