We have designated places for behavior, places appropriate for recreation: parks, places for exercise: gyms. Incubators for knowledge: libraries, schools, places for dancing: clubs, places for personal relief: restrooms (lol). Action in our society is heavily dictated by space, and as a result space helps create predictability, routine, and boundaries for individuals.
However there are some benefits. For example, the benefits of allocating space for personal relief, in some ways, contributes to improving public health. On the other hand, the cost of designating particular spaces for learning, affects how we think about learning and this can be detrimental to individuals and society as a whole.
Why does behavior happen in specific places? Possibly because we think behavior can only happen in some places. Perhaps because we think of some action as part of a space. Perhaps because we think it is the most rational and convenient place to do something. Perhaps because we will be penalized if we do something that is illegal, such as sex in public, or living in the park.