Metropolitan regions can be regarded as economic areas comprising various s
ub-economies with different forms of economic and spatial organization. The
purpose of this article is to undertake a critical appraisal of the vision
of Berlin as a 'service metropolis' through empirical observation of secto
ral trends and locational patterns in the city, and to establish that Berli
n's urban area is a major production space with a complex fabric of special
ized production districts. This spatial organization will be examined in te
rms of the level of agglomeration of various sub-economies with special ref
erence to the formation of local enterprise clusters in the Berlin economic
area. Berlin's specialization profile and the employment trend in the city
compared with other metropolitan cities in Germany make it clear that the
metropolis of Berlin is under threat as a production space, and this threat
partly stems from the way in which the real estate business has developed
in the Berlin area.