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“Welcome to Citiwire.net! The compelling — and growing — case for smart cities to study foreign models gives me a chance to critique my fellow journalists whose attacks on “junkets” actually intimidate mayors and councilpeople who could benefit from learning trips abroad. … Our Citistates Associate Jonathan Miller, a whiz in analyzing commercial real estate nationwide, offers a gloomy assessment on the delayed recession hit of collapsing property values. The only bright light: it can’t last forever! ”   -- Neal Peirce

Neal Peirce

Cities Look Abroad to Prosper at Home

For Release Sunday, February 7, 2010
© 2010 Washington Post Writers Group

Are we ready to retire the old bugaboo that any American mayor better think twice before visiting a foreign city — that the press back home will pillory him or her for “junketeering”?

Just possibly. “Gotcha” stories about foreign travels are still feared by mayors. But they’re dangerous anachronisms. Our cities’ economies and wellbeing actually require inventive foreign connections. Trade opportunities and enriching local economies still top the list. But new considerations are flooding in — for example the well-advertised global competition for the footloose young professionals, looking for “live” local scenes and cultural diversity.

The hands-down American regional leader on learning from abroad has been Seattle with its array of highly export-oriented firms. For 17 years Seattle has sent sizable delegations (70 or more) of business, political and civic leaders to see first-hand how a major foreign city and region really “clicks.” I’ve personally accompanied three of those visits — to Sydney, Hong Kong and Berlin — and discovered they’re significant eye-openers. Recently Seattle delegations have visited such cities as Fukuoka and Abu Dhabi — hardly our grandparents’ world city list.

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Jonathan D. Miller

Ongoing Drag: Commercial Real Estate

For Release Monday, February 8, 2010
Citiwire.net

Here’s the good news: The economy may be turning the corner thanks to a heavy dose of government stimulus. And since March stock and bond portfolios have rebounded and at least house prices have bottomed after a three year freefall.

But lots of problems remain — not just slowness of job recovery. Just check the corner I watch for a living: commercial property. This sector continues to sink, buried in hundreds of billions of dollars in bad loans to overleveraged owners, who paid too much during a frenzied 2004-2008 transaction binge. Representative of these toxic assets, half-built condo projects, see-through floors in office buildings, and papered-over mall store fronts stand on view from coast to coast.

Commercial real estate usually lags post-recession upturns. But continuing declines in office, shopping center, hotel, apartment and warehouse markets strain the nation’s still-fragile banking sector and threaten to temper prospects for sustained economic recovery.

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