The House Where ‘Winnie-the-Pooh’ Was Written is for Sale

The 9.5-acre estate was once home to Christopher Robin and A.A. Milne
By Erin Blakemore
SMITHSONIAN.COM
FEBRUARY 1, 2017

Did you ever dream of exploring the Hundred Acre Wood with Piglet or chilling at Pooh Bear’s adorable house? If so, you’re not alone: A.A. Milne’s Winnie-the-Pooh books are still beloved classics nearly a century after their publication. Now, reports Michael Schaub for the Los Angeles Times, the house where the books were written is for sale.

Cotchford Farm, where Alan Alexander Milne lived with his family and penned Winnie-the-Pooh, The House on Pooh Corner and his other classics, is on the market in England. Featuring a renovated country house and 9.5 acres of property, the East Sussex estate is classically English—and even more so because of who once owned it.

Savills, the real estate firm selling the property, says that the house has six bedrooms and four reception rooms. It was originally built in the mid-16th century. As Schaub notes, the home played host to evacuated families during World War II, and it was later owned by Rolling Stones guitarist Brian Jones who died there in 1969.

The estate includes an apple orchard, a summer house, a swimming pool, landscaped gardens and even a statue of Christopher Robin. That’s fitting as the real Christopher Robin, Christopher Robin Milne, once resided in the home, and his stuffed animals served as fodder for his father’s stories in the years after World War I.
Perhaps most intriguing is the house’s proximity to what Milne characterized as the “Hundred Acre Wood.” In real life, the fabled forest was based on Ashdown Forest, a one-time medieval deer hunting forest that is now protected land. The forest now promotes self-guided “Pooh Walks” for visitors that include jaunts to the “Pooh Sticks Bridge” where Winnie and Piglet threw sticks into the water. That bridge, where the real-life Christopher and his nanny played the game, is in close proximity to the property for sale.

Milne, who had built his literary career on plays and detective stories, soon found himself writing almost exclusively for children after what began as a short poem published in the magazine Punch soon became a phenomenon. It’s a legacy that he felt overshadowed his more important work, and his son, too, was hounded by his father’s bear for the rest of his life. As the real-life inspiration for Winnie-the-Pooh, he was forced to participate in its publicity and was harassed by people who couldn’t separate literature from reality.

Fame came at a price for the Milnes. And the home’s eventual buyer will pay a price, too: The asking price is $2.38 million. But for anyone who still dreams of heffalumps, woozles, Eeyore’s gloomy place or a pot of delicious honey, living in Milne’s magical abode might just be worth the whole honey pot.
Read more: http://www.smithsonianmag.com/smart-news/house-where-winnie-pooh-was-written-sale-180961999/#hZEETGI6QhIlMOYv.99

Southeastern U.S. Experiencing a Growth Spurt

Source: National Real Estate Investor By: Dan Wagner

Due to rapid growth, the Southeast is emerging as an economic powerhouse with a diversifying base.

With two international gateway markets in Atlanta and Miami—together accounting for more than 50 percent of the region’s international commercial real estate investment—and strong growth and educated workforces in smaller cities such as Charlotte, Tampa and Nashville, the Southeast region would form the sixth largest country in the world with a growth rate that would exceed any in the top five.

The Southeast boasts an industrial expansion fueled by both import and export activity, as well as increases in manufacturing employment and activity. Overall industrial vacancy is at a record low for the region. Atlanta, Orlando and Memphis provide strategic locations for e-commerce users, and Memphis has seen an excessive amount of distribution activity relative to the market’s size. The region benefits from port markets such as Savannah, Miami and Charleston as well, and industrial health will continue to strengthen with the widening of the Panama Canal.

The increase in population and employment growth, coupled with strong market conditions, could prompt an office construction boom throughout the region. Nashville in particular has accounted for one third of all office space constructed in the Southeast over the last two years, with 3.5 million more sq. ft. projected over the next two years. Additional construction in Nashville and throughout the Southeast could mitigate the leverage currently held by landlords, who have been able to lift rates consistently. In 2016, every market in the Southeast hit record highs for office asking rent, which rose by more than 10 percent, though the region still provides a great value compared to other U.S. regions.

Retail has followed the trend, with vacancies hovering near historic lows and asking rents near historic highs. Despite the increase in e-commerce, retail development is expected to continue, though it will be at a more conservative pace than pre-recession levels of construction. Markets with the largest amount of new retail development expected are Atlanta, Orlando and Tampa.

Atlanta and Orlando, along with Miami, are also poised for the most hotel development in the Southeast. With six consecutive years of U.S. economic growth, leisure and business travel have increased, stabilizing hotel performance. The revamp of leisure travel in Florida and along the coastal markets and business travel in Atlanta, Charlotte, Nashville, Miami and Orlando has increased the hotel demand.

Multifamily supply has caught up to the population surge in the Southeast, with deliveries outpacing absorption in 2016 for the first time since the recession. However, with 48 percent of the country’s net migration flocking to the Southeast, there is still a high amount of activity and interest in urban multifamily assets.

CBRE’s 2017 Southeast U.S. Real Estate Market Outlook touches on each city’s strengths in more detail.

Dan Wagner serves as Southeast research director for CBRE.

Core, Core Plus, Value Add, and Opportunistic – 4 Commercial Real Estate Strategies

Source: ActiveRain.com By Joseph Cacciapaglia

January 10, 2011 02:01 PM

As I mentioned in an earlier post, there are lots of terms used by commercial real estate investors that often confuse or intimidate novice investors.  I promised to define some of these terms in occasional blog posts.  Well today is your lucky day, because I decided to define four related terms: Core, Core Plus, Value Add, and Opportunistic.  These are the four investment strategies, and most commercial real estate investors will focus one or two of these strategies when investing.

Core:These are fully stabilized properties with credit quality tenants on long term leases.  These investments are well located in primary and secondary markets.  Usually these properties are purchased by institutional investors that are looking for a a safe reliable return.  Core investments in commercial real estate are often purchased as a way to diversify an investment portfolio.

Core Plus: Investors who generally want a safe return, but are looking for a little bit of upside prefer Core Plus.  These properties are match the physical description of Core investments, but usually have some opportunity to increase NOI.  A common Core Plus investment would be a class A office building in a CBD in a primary market.  The property would have good tenants, but might have a lot of upcoming lease roll.  Core investors would see this lease roll as a threat to their reliable income, but Core Plus investors might see this as an opportunity to increase rents.

Value Add:This strategy is exactly what it sounds like.  Value Add investors are looking for the opportunity to increase the value of their commercial real estate investments.  Often these properties will have a high vacancy rate or some physical obsolescence.  Value Add investors will buy these properties at a discount, and work to increase the occupancy or fix the physical deficiencies.  Once the property has been stabilized, these properties may be sold to Core investors.

Opportunistic: There are a lot of different types of investments that fall into this category, from ground up development, to adaptive re-use, to emerging markets.  The unifying principle is that the investor is willing to take entrepreneurial risk to achieve out-sized returns.

These are not strict definitions, just broad guidlines.  When I’m helping investors in Reading, PA, I always like to start off by asking which investment strategy they prefer.  Feel free to comment below and let me know which investment strategy you prefer.

20 years ago, Alabama’s auto industry started rolling with first M-Class

Source: madeinalabama.com By:Dawn Azok

TUSCALOOSA, Alabama – Twenty years ago today, the first customer-ready M-Class SUVs began rolling off the Mercedes-Benz auto assembly line in Tuscaloosa County, launching new eras for both the automaker and the state of Alabama.

For Mercedes, the M-Class was the first mass market SUV, and its success helped spin off a full range of similar models for the premium German automaker while also influencing the offerings from competitors.

For Alabama, the start of M-Class production was also the start of the modern auto industry. Minivans, sedans, pickups and more SUVs have followed, as Honda, Hyundai, Toyota and hundreds of suppliers set up shop in the state.

“In the 20 years since Mercedes began producing vehicles in Alabama, our partnership with the company has grown stronger today than ever before,” Governor Robert Bentley said.

HudsonAlpha Breeds Serial Entrepreneurs

Source: Businessalabama.com Written by Nancy Mann Jackson

A flare for growing biotech companies is a characteristic of the genomic researchers of the HudsonAlpha Institute. The co-founder and one of his first associate entrepreneurs are good examples.

Nurtured in his science and business by HudsonAlpha Institute’s founder Jim Hudson, Jian Han has followed Hudson’s footsteps as a serial entrepreneur of biotech firms.

Nurtured in his science and business by HudsonAlpha Institute’s founder Jim Hudson, Jian Han has followed Hudson’s footsteps as a serial entrepreneur of biotech firms.

When the HudsonAlpha Institute for Biotechnology opened in Huntsville in 2009, it promised to boost genomic research, economic development and educational outreach.

The institute has delivered on all three counts, bringing together some of the world’s leading thinkers in genomics with innovative entrepreneurs and educators. Together, they are working to improve human health and quality of life by participating in ongoing genetics research and developing products, services and companies that make that research accessible and available to improve people’s lives.

HudsonAlpha’s campus spans 150 acres and now includes three buildings housing 27 growing companies and approximately 300 employees in the companies and the nonprofit research center. While the institute’s success relies on strong research and viable products and services, the most important ingredients are passionate entrepreneurs who have a vision and dedication to see it through. With a number of successful startups under its belt, HudsonAlpha has become a breeding ground for visionaries who often start not just one company but many companies in succession. Here’s a look at two of those prolific business-makers and what keeps them going.

Jim Hudson

Born and raised in Huntsville, Jim Hudson was the son of an entrepreneur. His father was his partner in Hudson’s first businesses, which were an iron and aluminum foundry and an antenna company. But Hudson’s first love was science, and after selling those businesses in 1981, he returned to school to pursue a master’s degree in molecular biology.

“While I was a scientist first, I was always looking for business opportunities that tied in with my research,” he says. Eventually, he founded Research Genetics, a Huntsville company that produced arrays of artificial DNA for use in genetics research. As the company grew, Hudson began working toward incubating other biotechnology companies. He would encourage his employees to launch their own businesses and in return for being a co-founder of those companies, he provided office space, supplies and business services at no cost.

When Hudson sold Research Genetics in 2000, it had grown to 260 employees and $28 million in revenue. When the new owner relocated Research Genetics to California in 2002, many of those employees were laid off.

After spending so much time and effort to build a strong community of biotechnology professionals in the Huntsville area, Hudson didn’t want to watch it fall apart. He formed the Partnership for Biotechnology Research to “keep the community together,” bringing in speakers from all over the world for quarterly meetings.

As a founder of HudsonAlpha Institute for Biotechnology, Hudson continues to invest in new companies and serve as a mentor and supporter of other companies based on genomics research. “I’m a scientist by nature, but I have a desire to take my education and use it in business,” Hudson says. “I continue to believe that biotechnology is second only to electronics in its potential to improve life for all of us.”

Garrett Dunn, a lab technician, loads cartridges into a reader in Han’s lab so the software can process data from it.

 

HudsonAlpha’s unique combination of nonprofit research and commercial businesses makes it an ideal place for biotech entrepreneurs, and past success seems to be building a generation of serial business owners.

“When you experience success and make enough money so that you’re no longer worried about your own financial picture, then you want to start more companies to make a difference in the world,” Hudson says.

“We believe capitalism is the best way to bring our research to make a difference for the most people. Here, we have a truly dynamic, supportive environment. We meet together every week and share ideas and root for each other.”

Jian Han

Growing up in China, Jian Han was the son of a leading Chinese physician and researcher. His father introduced many new technologies in China surrounding infertility treatments and genetics testing. For instance, he invented
chorionic villus sampling (CVS), a prenatal genetics screening procedure.

Because of his father’s passion, Han decided to come to the United States to study medicine. After his father’s death, while Han was a student at the UAB School of Medicine in Birmingham, he felt driven to launch a company to bring the work of his father’s lifetime to the marketplace.

While still at UAB in 1996, Han launched Genaco, which commercialized the technology his father developed and earned Chinese FDA approval. As the business grew, it drew the attention of Hudson, who owned Research Genetics at the time. “He asked me to come to Huntsville and offered free space, free Internet access and other perks,” Han says. “You can’t get much better than free.”

Han relocated Genaco to Huntsville and, in 2006, sold the business to Kiagen, a German company. By then, he was hooked on Huntsville and on biotech entrepreneurship. In 2007, Han launched iCubate Inc., a molecular diagnostic company, to market his proprietary technology that allows users to rapidly detect multiple pathogens in one test. Two years later, he launched iRepertoire, which commercializes applications of arm-PCR technology, which Han developed for infectious disease diagnosis and immune repertoire analysis.

“Most people who start several businesses have a passion to solve a problem; they recognize the need in the marketplace and feel driven to do something about it,” Han says. “For me, it started as a way to finish the story my father started.”

And the Huntsville community and HudsonAlpha have been instrumental in Han’s continued work to build and grow biotechnology-based companies. “Huntsville has a lot of business activity and entrepreneurial spirit, and a nice angel network,” he says.

Han says it’s almost a tradition in Huntsville to invent a technology, get it recognized by a larger company, and then sell it, satisfying investors and freeing the entrepreneur to move on to the next big thing.

“It’s like raising a pig,” he says. “Once you grow a company to a certain size, you let it go.”

Nancy Mann Jackson is a freelance writer for Business Alabama. She lives in Huntsville.

Office Construction Completions Expected to Hit Peak in 2017

Source: costar.com Written by Randyl Drummer

Vacancy Rates Likely to Increase in High-Construction Markets as Infusion of New Supply Hits Markets from San Francisco to New York City

Apple plans to start moving 12,000 employees into its new 2.8-million-square-foot "Spaceship" campus this year.
Apple plans to start moving 12,000 employees into its new 2.8-million-square-foot “Spaceship” campus this year.

Steady growth in office-using employment over the last few years and rising demand from big employers for a diminishing supply of newer high-quality office space have combined to create a fertile environment for new office construction, and developers are ready to deliver.

This year will likely be the peak in the cycle for the delivery of new office projects, according to CoStar Portfolio Strategy forecasts. The U.S. office vacancy rate has continued to steadily decline, moving from 10.7% in 2015 to 10.4% in 2016. Vacancies are expected to hold fast at 10.3% in 2017 amid ongoing demand for existing space from tenants, according to analysts presenting CoStar’s State of the U.S. Office Market Q4 2016 Review and Forecast presentation.

“The big news in 2017 for the office market is that we’re expecting a 55% spike in construction deliveries, increasing from 58 million square feet of new office space in 2016 to over 90 million square feet this year,” said CoStar Portfolio Strategy Director of Research/Office Walter Page, who co-presented the review and forecast with Managing Director Hans Nordby and Managing Consultant Paul Leonard. “While some of those will be projects that were pushed back from last year, we’re just at that point in the market cycle where it’s time for new supply.”

The hefty totals projected for this year are the result of the large number of new office projects started in 2015. The 129 million square feet of new office space started in 2015 included such massive mixed-use developments as 30 and 55 Hudson Yards, and the $1.2 billion One Manhattan West office tower in New York City. An even larger total of 138 million square feet of new office space was under construction as of Jan. 1 of this year.

For the most part, major construction is concentrated in a handful of large metros. New York City has seen a jump of 107% while Southern California, where construction has started to pick up substantially for the first time since the recession, is up 27% in two years time. Texas office construction is down 35% since 2015, largely due to the construction shutdown in Houston, where energy sector tenants have put large blocks of space on the sublet market.

The 138 million square feet under way is still significantly lower than the 2000-2001 period, when over 200 million square feet was under construction. This has allowed national office vacancies to remain well below long-term averages, Page and Leonard said.

“We’re expecting that 2017 will be a peak year for this cycle, but we’re not going back to the levels we saw during the last cycle,” said Leonard.

That being said, most large markets are seeing construction levels as a percentage of total office inventory that are well above their historical averages. In the San Jose market, for example, construction totaling 9% of total office inventory, 10 million square feet, is under way, compared with 1.4% nationally. While pre-leasing is quite strong, potentially rising levels of backfill space that may become available when companies move into their new quarters is a concern, Leonard said.

New York City, which rarely registers among the construction growth leaders based on percentage of inventory due to the massive size of its base, currently has 19 million square under way, with the massive Hudson Yards comprising roughly half of that total.

“The Hudson Yards project alone is almost equivalent to the entire under-construction supply in the San Jose market,” Leonard said.

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The impending wave of new supply will have an impending ripple effect on demand fundamentals such as net absorption, occupancy and rental rates in several large markets in coming quarters. Absorption totals for newer 4 and 5 Star office properties, which has fallen from 64 million square feet to 42 million square feet nationally over the past year, is expected to rise this year as several large build-to-suit projects, including large projects by Google and Apple, including Apple’s 2.8 million-square-foot “spaceship” headquarters campus, finally reach completion.

Office vacancy rates for newer buildings could shoot up to 25% in San Francisco, while vacancy rates for newer vintage buildings could potentially double in Denver and rise significantly in New York City and Los Angeles.

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Meanwhile, high levels of construction in CBD submarkets are causing rental rates in the urban core to slow, narrowing the rent gap between downtown and suburban properties. In markets like Chicago, downtown construction comprises 75% of total construction within the entire metro, while urban core property makes up 40% of total stock within the Chicago metro. The same trend is occurring in New York City, Denver, Seattle, Washington, D.C. and Los Angeles, restricting rental rate upside in those CBDs.

“High levels of construction are beginning to put a limit on rent upside,” Page said.

However, strong demand growth markets that have had relatively little construction since 2006 such as Tampa, Orlando, Minneapolis and San Diego may present windows of opportunity for developers. But that window could close fast.

“The next developer to build a building in those markets is probably going to do pretty well, but for the third or fourth outfit, they’re probably too late,” Nordby said.

Breather, the App That Lets You Rent Office Space by the Hour, Is Expanding to New Cities

Source: Entrepreneur.com Written by: Carly Okyle

Breather, the App That Lets You Rent Office Space by the Hour, Is Expanding to New CitiesFEBRUARY 10, 2016

Flexible work spaces are super hot right now. And, for one big name in the space, things are about to get hotter.

Breather, an app that allows entrepreneurs, freelancers and other flexible workers to rent classy, curated office spaces by the hour, announced today that is expanding to new cities. The move is the result of a deal with commercial real-estate firm Cushman & Wakefield, which has signed on as Breather’s exclusive broker.

The company plans to break into Los Angeles, Chicago, Washington, D.C., Toronto and London this year. Right now, it’s in New York City, Boston, the San Francisco Bay area and Ottawa, Canada.

Traditionally, entrepreneurs have either had to sign long-term leases for office space or work out of coffee shops. In the last few years, alternatives such as Breather have created on-demand solutions, offering workers rooms for meetings and other events with the swipe of a finger.

“We’ll never eliminate the office, but the office needs to adapt to the person,” says Breather’s co-founder and CEO Julien Smith.

Image Credit: Breather

Things have been moving quickly for Breather, which has raised more than $25 million in venture capital since launching in 2012. Two years ago, the Montreal-based company offered just three spaces for rent in New York City. Today it offers 50, says Smith.

In total, Breather says it currently has 100 spaces available for rent across North America and hundreds of thousands of users. Rates vary by city and space; in New York, a room can be rented for anywhere from $25 to $100 an hour. The average customer books a room for between two and five hours, according to Smith. Rooms can also be rented for up to a few weeks.

Related: How This Company Is Helping Businesses Make the Most of Excess Office Space

Breather is not alone in taking advantage of the demand for flexible work environments. LiquidSpace, available in 46 states as well as Australia and Canada, has raised $26 million since Mark Gilbreath and Doug Marinaro founded it in 2010. The company offers a variety of short-term options, as well as options that can last for a year or more. Co-working space WeWork has raised $1 billion from investors. WeWork, which offers month-to-month rentals, is in 14 cities in the U.S., plus Israel, the U.K., Canada, Netherlands and Germany.

Image Credit: Breather

For Breather’s CEO, the next up and coming area is Asia, although the company hasn’t announced any formal plans to expand there yet.

As the company grows, Smith hopes to make Breather the go-to spot for the flexible workforce. “Freelancers are a big portion of the population now. I really think that we can be a big part of the everyday worker’s existence,” he says.

Silicon Valley’s Real Estate Crunch Is A Golden Opportunity For Other American Cities

Silicon Valley’s Real Estate Crunch Is A Golden Opportunity For Other American Cities

huntsville-alabama

When Curse CEO Hubert Thieblot told his employees last year that he was moving the company’s San Francisco headquarters to Huntsville, Alabama last year, they thought he was crazy.

About 20 of his employees quit because they didn’t want to relocate.

“It was very controversial,” said Thieblot, who had lived and run the company out of San Francisco for at least five years. “A lot of people did not like me for that decision.”

But today, the profitable, 110-person person company operates out of an Alabama city with a population of just under 200,000 people and the highest number of Ph.Ds per square mile given Huntsville’s history with NASA as the nation’s “Rocket City.” Curse just closed $16 million in funding earlier this week too from the China-centric venture firm GGV Capital.

“If you want to build a long-term company, you might have a better chance of keeping people outside of San Francisco,” Thieblot said. “The job market is too crazy here.”

Indeed, the cost of living and commercial real estate is also pricing smaller startups out of San Francisco. I’m seeing bootstrapped founders, who have yet to a take full round of funding, trickle into surrounding cities like Oakland, Daly City and the Bayview neighborhood of San Francisco, if they’re not considering urban hubs in other parts of the country altogether.

Jon Wheatley, a British entrepreneur who co-founded DailyBooth, wrote a good post about this when he decamped for St. Louis, Missouri to dream up new projects.

“If you’re trying to bootstrap, being based in San Francisco is awful,” he said. “The leading cause of startup death is running out of money. Moving to a cheap city and doubling (or more!) your company’s runway will more than likely vastly increase your chances of eventual success.”

Are we supposed to cry for these entrepreneurs, like the teachers, public servants, artists and the elderly who have already faced several decades of gentrification in San Francisco?

Um, no. Not really.

From a national perspective, it’s a good thing to see these job opportunities become more geographically diversified. (I mean, did you see the first quarter U.S. GDP numbers?! The economy contracted at an annualized pace of 2.9 percent.)

net-total-migration

While the rest of the country is only starting to see the kind of job recovery that may make the Federal Reserve finally raise interest rates later this year, the San Francisco Bay Area is bursting at the seams.

The city is at its highest employment levels ever and the population is expected to reach 1 million people by 2032. The city grew by 32,207 people between 2010 and 2013, but only added 4,776 housing units in the same period. Hence, our housing crisis.

Screen Shot 2014-07-10 at 8.52.20 PM

Similarly, commercial rents are nearing dot-com period highs. The Information reported last week that the average price per square foot for so-called Class A office space in San Francisco is $64.45, just shy of the dot-com bubble peak of $67.20 in the third quarter of 2000.

Commercial real estate developers are all scrambling to get their projects entitled as quickly as possible before they run into a nearly twenty-year-old San Francisco law called Prop M, that caps the amount of office space that can be built in a given time period.

Many startups are coping by operating distributed teams, with one founder here in Silicon Valley and another working with engineers in a different part of the country (or world).

Jason Citron, a veteran founder who sold OpenFeint to GREE for $104 million two years ago and is backed by Benchmark in his new hardcore tablet gaming company Hammer & Chisel, works in Burlingame while his co-founder Brandon Kitkouski is based around Dallas.

“His family’s in Texas. He’s got a nice house. If he had it in the Bay Area, it would cost millions of dollars,” Citron said. “He was commuting for awhile, but that was hard. The Bay Area is at capacity. It’s freaking expensive.” (And by the way, why is housing affordable in Texas? Houston had more housing starts than all of California in the first quarter of this year. Am I saying we should be Houston? No. I’m just pointing out policy trade-offs.)

Similarly, Jen Lu, who started YC-backed toy company ZowPow, splits her startup between San Francisco and Portland. Her co-founder Brian Krejcarek moved back to Oregon after living in San Francisco for many years.

“It’s been a good thing for us,” she said. “We’ve been looking to hire engineers and it’s just really hard to do it here because it’s so competitive and expensive. But he has a network and is able to find talent there.”

Screen Shot 2014-07-10 at 9.02.57 PM

Some of the Valley’s best-known investors are also encouraging geographic diversification. Andreessen Horowitz is incubating a startup called Teleport, which will help knowledge workers improve their quality of life by moving to places that maximize the difference between their cost of living and take-home pay. Marc Andreessen recently published an essay in Politico, arguing that other regions across the U.S. should remove regulatory hurdles around specific technologies they want to attract — be they self-driving car, stem cell or Bitcoin-related startups.

Is this bad for the Valley over the long-run?

Between giants like Google, Facebook and Apple and then later-stage companies like Uber, Square, Dropbox and Twitter, the region has a healthy mix of employers.

Yet the heated real estate market favors capital-rich, growth-stage companies right now, often at the expense of other kinds of creative experimentation, be it a longstanding artist’s collective or a not-yet-Ramen-profitable entrepreneur. The cost of living and the competition for talent simply doesn’t give startups a lot of time to find product-market fit here unless they’ve raised a lot of capital.

In contrast, Google, founded in 1998, and Facebook, founded in 2004, came of age when the Valley was weathering slower economic times and it was easier and cheaper to form a cluster of AAA technical talent inside any single company.

Is that worrisome? Maybe a little. When you look at other cities that have historically been dependent on a single industry like Detroit, the population declines started after power consolidated to a handful of companies like GM, Ford and Chrysler, which then began distributing their plants around the country in the 1950s to avoid the risk of production disruptions from worker strikes. (These changes predated competition from Asian auto manufacturers by at least a generation.) Ideally, you want a mix of firm sizes, and younger and older companies.

But ultimately, these things come and go in waves, and the Bay Area is an undeniably attractive place to live no matter what. A decade ago, the world’s leading mobile OS was built out of Helsinki by Nokia. Today, both of the world’s leading mobile OSs, Android and iOS, are here in Silicon Valley.

Cities have to maintain a certain equilibrium between people moving out and people moving in. Right now, the escalating costs and sheer limits of Bay Area’s housing and transit infrastructure are tilting that balance back out to the rest of the country.

So if you’re a mayor of another U.S. city and you want to attract jobs, now would be a good time to drop by a Y Combinator or 500 Startups demo day to make a pitch.

We have our hands full.