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As Mercantilism became the dominant economic theory of the Renaissance, merchants tended to conduct their business in the same buildings, which might include retail sales, warehousing and clerical work. During the 15th century, population density in many cities reached the point where stand-alone buildings were used by merchants to conduct their business, and there was a developing a distinction between church, government/military and commerce uses for buildings.
• Industrial Revolution
The Industrial Revolution (18th and 19th century) saw the rise of banking, railroads, insurance, retailing, oil, and the telegraph industries. To transact business, an increasing large number of clerks were needed to handle order-processing, accounting, and file documents, with increasingly specialized office space required to house these activities. Most of the desks of the era were top heavy with paper storage bins extending above the desk-work area, giving the appearance of a cubical and offering the workers some degree of privacy.
The relative high price of land in the central core of cities lead to the first multi-story buildings, which were limited to about 10 stories until the use of iron and steel allowed for higher structures. The invention of the safety elevator in 1850 by Elisha Otis saw the rapid escalation upward of buildings.