Government managed commercial area in Spanish city (7)
I believe the answer is:
granada
'spanish city' is the definition.
(I've seen this before)
'government managed commercial area' is the wordplay.
'government' becomes 'g' (abbreviation for government).
'managed' becomes 'ran' (I've seen this in another clue).
'commercial' becomes 'ad' (abbreviation for advertisement).
'area' becomes 'a' (maths abbreviation).
'g'+'ran'+'ad'+'a'='GRANADA'
'in' is the link.
(Other definitions for granada that I've seen before include "Andulasian city" , "car in > Spanish city" , "City of Andalusia" , "Spanish city, site of the Alhambra" , "sunny city" .)