Since the mid-1950's, construction of multi-storied buildings has remarkably in creased in Japanese cities, especially in their urban cores. But there are few articles on the use of space regarding to the aspect. In this paper, the author tries to discuss on the use of mufti-floored space in connection with the growth of CBI and the construction of under-ground shopping centers, taking as example the city of Nagoya, the third largest city in Japan. The results obtained are summarized as follows (1) In the Edo era (1603_??_1867), the main axes of CBD in Nagoya were the street of Tenmacho stretching from east to west and the street of Honmachi from north to south. But in the middle of the Meiji era (1898), with the introduction of tramcar on the streets of Hirokoji and Minami-Otsu at the fringe of the old castle town, the axes of CBD moved to these areas. Since the mid-1950's, the new CBI including Hirokoji and Ekimae (front area of the Nagoya railway station) has developed owing to the construction of many high buildings, underground shopping centers and subways. (2) Use of multi-floored space first appeared in the urban core before the Second World War. In the 1960's it spread to the urban fringe and suburbs, while utilization of space in the urban core became more intensive. In other words, small high buildings were demoli-shed and were replaced by large buildings in the course of urban renewal. (3) The use of multi-floored space reflects differential value of land in the CBD. In case of Sakae area land value decreases gradually from core to fringe, while in case of the front area of Nagoya station, land value of fringe declines very abruptly in comparison with that of central portion. (4) The use of multi-floored space in the urban core was stimulated by construction of subways and the improvement of road system by the municipal authorities. As a result, underground shopping centers were developed to avoid heavy traffic on roads. It seems that development of underground shopping centers is one of the basic characteristics of the CBD of Japanese cities. (5) Certain vertical differentiation of urban function can be seen in the urban core in connection with the multi-floored space use as shown in Fig. 8. For example, retail and amusement functions are mainly located in the first basement (B.lF) and the ground floor of high buildings which are combined with underground shopping centers and subways. Parking spaces and store-spaces are located in the second basement and the third basement, in contrast with business and dwelling functions carried on the second floor and above.