Exceptional place is crumbling (7)
I believe the answer is:
special
'exceptional' is the definition.
(I know that exceptional can be written as special)
'place is crumbling' is the wordplay.
'crumbling' indicates an anagram.
'place'+'is'='placeis'
'placeis' anagrammed gives 'SPECIAL'.
(Other definitions for special that I've seen before include "Though particular" , "Dish of the day" , "Exceptional or particular" , "Designed for a purpose" , "Distinctive, exceptional" .)