Smart Energy Storage Gives Building Owners Control of Electricity Expenses

Source:cre.tech By: Janice Lin

 

Our electric power system requires a constant balance of supply and demand. In the past, we’ve traditionally overbuilt supply to maintain electric system reliability: ensuring that at any given time, there is enough power supply available to accommodate peak annual demand. The net result is that we have trillions of dollars of infrastructure that isn’t used very often, and greenhouse gas emissions from power plants that aren’t run very efficiently.

Energy storage, therefore, is vital to our electric power system. It is a solution to fixing our aging power grid, a critical tool in increasing the spread of renewable energy, and a bridge between the needs of utilities and their customers. Energy storage can be installed at many points in the grid. In fact, there are already tens of thousands of grid-connected storage systems installed at facilities throughout the world. But what is energy storage, and how can it be put to use, today, in facilities across the country?

Grid-connected energy storage is not a new concept. Currently, there are over 1,000 storage systems – equivalent to 150,000 megawatts – installed worldwide. Energy storage can refer to a wide range of technologies and approaches to manage power. There are a number of technologies relevant to commercial and industrial facilities, all of which are able to fit within the established architecture of a building:

  • Solid-state batteries: batteries are often paired with an intelligent software system that can charge and discharge them based on a building’s energy usage, weather patterns and historical use patterns.
  • Flow batteries: a type of rechargeable battery, where energy is stored directly in the electrolyte solution; benefits typically include a longer cycle life and fast response times.
  • Flywheels: these systems store electricity in the form of kinetic energy. If power fluctuates or goes down, the rotor will continue to spin and the kinetic energy that results can be converted into electricity. Flywheels are useful for power quality and reliability.
  • Thermal storage: thermal technologies enable temporary energy reserves in the form of heat or cold. Ice storage, for example, works by making ice during off-peak hours when rates are low. When demand increases and rates go up, the ice system turns off the AC and uses the stored ice to provide cooling.

Energy storage can be installed at many points in the grid – including factories and other commercial or industrial facilities. There are already tens of thousands of grid-connected behind-the-meter storage systems installed at commercial, industrial and residential locations throughout the world. These systems are providing a multitude of benefits to facilities, a number of which are especially advantageous to high rises: demand charge reduction, participation in demand response programs, maximized time-of-use rates and emergency backup.

Demand Charge Reduction

Depending on location, many commercial and industrial facilities are subject to demand charges on their energy bills. These charges are based on the 15-minute period in which the demand for energy is highest throughout the day and in some cases, can account for 50% of the total energy bill. While energy efficiency or solar PV can reduce total electricity consumption, these benefits do not always coincide with a building’s peak usage. Energy storage systems, especially those paired with intelligent software, can track a facility’s load and reduce demand charges by dispatching battery power during periods of peak demand, effectively ‘flattening’ the load.

Participation in Demand Response Programs

Demand response for commercial and industrial facilities traditionally involves ratcheting down usage at times of peak demand. Energy storage can enable participation in demand response markets without impacting on-site energy use or operations. By responding to utility price signals, storage systems can increase financial return from participating in DR programs, while also benefiting the grid overall.

energy storageMaximizing Time-of-Use Rates

Energy storage systems can shift consumption of electricity from expensive periods of high demand to periods of lower cost electricity during low demand. This reduces the risk of lowering the value of on-site solar if tariff structures change over time, and peak demand periods shift to the evening when the sun isn’t shining. This also allows facilities to make the most of time-of-use pricing and reduce tariff structure change risk to electricity cost.

Emergency Backup

Planning for emergency backup power is an essential part of a resilience plan. Historically, commercial and industrial facilities have invested significantly in local emergency backup infrastructure. With advanced storage solutions on the market today, there may be opportunities to upgrade this infrastructure to not only provide emergency backup, but also a host of other money-saving and money-making solutions. And by using this infrastructure on a daily basis for demand charge reduction, its reliability and availability in the event of an outage can be increased as compared to a standalone battery and diesel generator that is only during an outage.

Case Study: Glenwood Demand Management Project

Glenwood is one of New York City’s largest owners and builders of luxury rental apartments. The full-service Manhattan real estate organization prides itself in being able to offer residents everything they need to live the “Manhattan lifestyle.” Like most high-rise properties in New York, however, Glenwood is affected by the demand that 13 gigawatts of peaking power places on the city’s grid during the summer air-conditioning season.

To address this problem, Glenwood participates in New York ISO and Con Edison demand response (DR) programs aimed at shedding loads during peak periods. Glenwood has been working with Demand Energy on an energy storage-based solution at a number of its residential properties. The systems are controlled by Demand’s Distributed Energy Network Optimization System (DEN.OS), which maximizes the economic returns of behind-the-meter storage systems, alone or in combination with distributed generation.

In 2012, Glenwood installed a 225 kW/2 MWh storage system with Demand’s DEN.OS software in its Barclay Tower property in downtown Manhattan. One benefit for building owners is the relative compactness and portability of such systems, which can be installed in constrained spaces such as garages and basements. The energy storage system allows Glenwood to switch operating modes from demand capping to DR without a financial penalty, and also helps Con Edison manage a more granular, location-based response to peak electricity demand across different sections of New York.

New York has some of the most expensive demand charges in the world. After the first year of operation, however, Glenwood saw a 14 percent reduction in its cost of energy and power, demonstrating the value and potential for battery-based storage to meet grid challenges throughout the year. The company is now working closely with Demand Energy to install an additional 1 MW/4 MWh of storage systems across ten Glenwood buildings for distributed grid support.

Energy storage is a proven group of technologies that has been in existence for decades. Thanks to tremendous technological progress in recent years, there is now a wide range of affordable and reliable storage options available, and a host of major companies are delivering grid-connected storage to the marketplace.

Advertisements

Real Estate Adds Stable, Long Term Growth to Your Investment Portfolio

Source: Realty Biz News Written by Brad Walker

Modern communication networks have effectively shrunk the size of the planet. Information can now travel in seconds rather than the hours, days or even weeks it took data to cross the globe just a couple of generations ago.

This rapid flow of information means that a “bargain” never lasts for long in today’s financial markets. Once a promising investment opportunity has been identified, the money flows that direction until the asset price reaches (or often exceeds) perceived value equilibrium.

When you throw in ultra-low interest rates and sluggish macroeconomic conditions in the US and Europe holding bond yields down and central bank stimuli overheating global equity indices, investors cannot find many low-risk, reasonable-return investments today.

Astute investors understand that the beginning of an interest rate cycle is not the time to be investing in bonds and that that the risk-reward ratio is simply not attractive with stocks at historic highs on the strength of smoke-and-mirrors political promises.

Fortunately, the alternative investment class has grown notably over the last decade or two to include private equity, futures, commodities/precious metals and real estate. Recent surveys also suggest that real estate is the fastest growing category of alternative investment, with sovereign investment funds worldwide projecting an almost 10% increase in real estate investments in their alternatives portfolio over the next five years (from 38% to over 41% of total alternatives portfolio).

Overview of 2017 US Housing Market by Region

Although millions of Millennials have been living with their parents for the last few years, many financial analysts say this trend is winding down. They argue that Millennials and even older Gen-Xers are just now reaching prime home buying ages, and that many of these now not-so-young adults will be moving into their own places over the next few years.

The analysts argue this bodes well for the US housing market, especially as the ongoing economic recovery is also producing more jobs and driving up wages.

Most well-known housing market analysts expect housing prices nationwide to be up by at least 3% in 2017. January clocked in with a 3.3% annual rate increase in existing home prices, so we are on pace to meet that projection. That said, growth will vary dramatically by region and by city, with many second-tier cities leading the way as growth slows down in major markets like San Francisco, LA and Boston.

With notable exceptions like NYC, housing price growth in the Eastern US and the Midwest is expected to lag growth in the other areas of the country listed below.

Southeast

The Southeastern US has been experiencing solid growth in home values for almost a decade. According to Zillow, Orlando, Florida is one of the hottest cities in the country, and will see home prices increase by an average of 5.7% in 2017. Knoxville and Nashville, Tennessee appear on Zillow’s top ten list with a projected home price growth of 4.4% and 4.3%, respectively.

Southwest

Utah is a housing hot spot in the Southwest part of the country. Zillow anticipates home prices in both Salt Lake City and Provo will move up by 4.3% in 2017. Denver is also seeing strong demand for housing, with home prices expected to climb by 3.2% this year.

West

Seattle continues to be an economic powerhouse and a magnet for new residents. Zillow is projecting that home prices in Seattle increase by 5.6% in 2017. Portland is just 170 miles south of Seattle, and Zillow is projecting housing prices move up by 5.2% in 2017 in this dynamic city. Sacramento, the capital of the Golden State, is also experiencing a real estate boom these days, with home prices expected to appreciate by 4.8% this year.

Medium to Long-term Investments Make Sense for Most Baby Boomers

Baby Boomers have different investment needs than earlier generations of retirees.

Up until the Great Recession, demographers and economists projected that most Baby Boomers would retire and move south much like the preceding generation. However, the stock market crash of 2008 decimated the retirement plans of many Baby Boomers as well as savaged their home values.

The net result is that a lot more Baby Boomers are working longer than they or the demographers expected to try and make ends meet. Related to this, an increasing number of boomers are staying in their family homes to remain near their jobs, children and grandkids.

Moreover, those Baby Boomers who are retiring are increasingly opting to stay in their homes rather than downsize. Part of the reason for this is their children (Millennials) have had a hard time finding decent jobs and moving out. Some surveys have suggested that 20% to 33% of the adult children of Baby Boomers are still living at home and one in three is still getting some kind of financial support.

These surveys also suggest that even when their children have moved out, BB parents want to have a big place for their kids and grandkids to come visit. For a large number of BBs, that means deciding to stay in the family home.

Whether you want to call it postponing retirement or reinventing it, it is clear that BBs have a different idea of how to spend their “golden years” than their parents and grandparents did. Given that pensions are disappearing, Social Security payments only cover a fraction of the cost of a middle-class lifestyle in a major city, and interest rates are so low, BBs have to think out of the box to support their “retirement”.

As mentioned above, many older Americans are choosing to stay in the workforce longer, but that’s not possible for everyone, and age does place limitations on the ability to work. Improvements in medical care also mean BBs can expect to live longer, so most can afford to take a longer-term perspective on their investments.

When you put all the pieces of the retirement puzzle together for BBs, a thoughtfully selected portfolio of real estate investments emerges as an ideal solution. No investment is risk free, but BBs who seek steady long-term income and appreciation have many low-risk real estate investment vehicles to choose from today.

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

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.

Click to Expand. Story Continues Below

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.

Click to Expand. Story Continues Below

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.