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IntroductionIf we are to make informed investment decisions we need, among other things, to understand the nature and functioning of the physical environment within which funds are to be committed. It aids understanding if we can offer a rational answer to a question of profound significance posed in 1927 by Robert Murray Haig[1]: "Where do things belong in an urban area?"In attempting to answer that question, he proposed and developed the major elements of urban land use location theory that are valid to this day. Indeed, Ratcliff[2], in his restatement of Haig's theorizing, went so far as to claim that he "set forth concepts which are the very cornerstone of modern urban land economics" and that "[l]ater workers in the field of land economics have contributed little of theoretical value…"Haig commenced by regarding the establishment as the basic space user. He then examined its internal structure and the forces external to it which influence its location. To Haig, establishments are "packets of functions". The way in which a firm combines its constituent functions is one determinant of its location. Over time, an establishment may discard or relocate one or more of its functions. A legal firm, for example, may relocate its storage function and store its files elsewhere at less cost. As a site's locational characteristics change, such a separation of functions may take place so that the establishment may continue to maintain its presence there at a cost it can afford.Moving to external factors, he noted that, as one moves from the periphery of the city towards its centre, transport costs decrease but, as competition sets in for closer-in locations, site rents increase. In short, site rents and transport costs are complementary. In this process the firm which locates successfully outbids all others. Equivalently, uses locate according to their rent-paying ability -the latter determined in part by the way in which management combines the firm's functions at that location. In the process of interacting with other establishments, the costs of overcoming the distance separating them have to be