If you are talking about החנות this could be "it is located in the city center," couldn't it?
Yes, added it.
center of the city and city center are the same, no?
"centre of the city" implies the geographical centre while "city centre" implies that it's where the city is most active, popular, etc.
How would you show the difference in Hebrew?
More or less:
the city centre - מרכז העיר
the centre of the city - המרכז של העיר
Is the "city center," מרכז העיר, the same as Spanish el centro = "downtown"? In Spanish "el centro de la ciudad" = el centro. Greek also κέντρο // centro // downtown. Do Israelis shorten it to מרכז?