Functional Obsolescence -- now there's a phrase that Commercial Real Estate professionals can understand. Caves, barns, factories and most recently office buildings (which are being converted into residences at a record rate) have all needed to transition over time, morphing from one use into another. And just like specific types of real estate, cities, to a certain extent, can also lose their effectiveness when the purpose of their existence (i.e. farming) changes. If there is any doubt of this, ask any Northeast city that saw its glory during the height of the industrial age how difficult it is to keep their city moving forward amidst massive socio-economic changes.

No one can argue that farming communities developed during the agrarian age and factory towns developed during the industrial age. It is also very clear that certain types of specific Commercial Real Estate was developed to support these paradigms. Over the last 55 or so years, the United States has developed Commercial Real Estate -- Office, Industrial, Retail and Multifamily -- to support a post industrial age. During this time, people drove to offices to share equipment and to meet; all shopping was done within some sort of retail space and almost no one worked from their homes or in a mobile capacity.

Even though the dot.bomb era left quite a bit of carnage, it did create a heightened awareness of the capabilities of things like Internet Retailing, Mobile Computing and a whole new way of thinking about business. While these changes did not happen as fast as the dot.comers would have liked to see, many of their ideas and concepts were fundamentally sound and we continue to see slow but steady adoption of these life changing "digital" ideas. The more these ideas take hold, the more pressure we will put on the traditional designs of our landscapes, including rural, suburban and urban centers. Just ask anyone that commutes 3 hours a day if working from home a couple of days a week would be appealing.

So the question begs, what is next for our cities? what is a digital, NextGen, future or 21st century city? These are very complex questions and, unfortunately, our crystal ball is not as clear as we would like it to be.

Since there are no clear answers to these questions, we will share the things we have learned over the last six years that could indicate what would make one city more progressive than the next and also which ones in the United States seem to be leading the way in trying to figure out the model for the future.

The following represents the types of things we have seen implemented or being considered by various cities that indicate they are heading in the direction of the 21st century:

Implementation of a sophisticated, comprehensive broadband infrastructure (fiber)

Extensive promotion of broadband services throughout the community (broadband for everyone)

Implementation of comprehensive wireless networks (wireless Internet in the parks)

Redesigned, paperless transaction systems for all city services (on-line permit process)

Identification and attraction of next generation industries and companies (nanotechnology)

Promotion amongst business community of next generation ideas  (alternative energy platforms)

The creation of digital signage networks (advertising and emergency communications)

Attraction of new retailing concepts that provide for enhanced experiences (Starbucks Music Cafes)

The setting of higher standards for schools as they relate to technology tools (laptops for all students)

Utilization of technology in the deployment of services (coin-less parking and high tech highways)

Setting of stringent standards related to design/build and energy efficiency (Zero Energy Buildings)

Programs to identify and reuse obsolete 20th Century real estate (Proactive Zoning Changes)

A clearly articulated mission statement that defines the future plan for the city (21st Century Vision)

This is just a sample of the kinds of things cities can be doing to prepare themselves to be competitive into the 21st century. As we've traveled around the country and the world, we have discovered cities that are clearly setting the new visions. In the United States, these visionary cities include San Diego, Austin, Chicago, New York, Baltimore, and Spokane.

Worldwide, cities such as Seoul, Singapore, Hong Kong, Glasgow and Dubai are well on their way to developing 21st century strategies.

What developer or Commercial Real Estate investor would not want to know where the next socio-economic paradigm will lead people? This, ultimately, is where the jobs and future lifestyles will be found. For a Commercial Real Estate professional, this leads to higher occupancy and better valuation. We have just scratched the surface on this very exciting topic. We know there are many other examples of "Digital Cities" in the United States and we want to learn more about them. If you are aware of any cities in the United States that are forward thinking and could be considered NextGen or "digital", please let us know. Send the name of the city and what sets it apart to This email address is being protected from spambots. You need JavaScript enabled to view it..