Today the urban environment can be seen as a mix of technically mediated elements and actual physical locations — the city is techno–synthetically composed. The method of observing the production of space, as asserted by Lefebvre, must take into account physical and non–physical spaces, produced out of the coexistence of everyday life and activities with the space of information. This paper explores the merging of bits and bytes with the urban environment and uses augmented reality applications for the smartphone and peripheral vision displays as case studies to illustrate how the method of visually layering digital graphics on to the image of actual space produces a new kind of spatial commodification