Flee2theCleve

Cleveland’s Central Business District (CBD) has had a strong start to the year. The CBD experienced positive absorption once again this quarter. The current activity in Cleveland is being driven by tenants’ need for growth and expansion, as well as new companies coming into the market. Low vacancy rates and a tightening Class “A” has translated into an encouraging market, attracting outside investors with fresh capital. Deals expected to take shape in the next few months should continue to make 2007 a great year with a lot of positive activity. Overall vacancy declined from 18.26% to 18.03% in the second quarter. For the third consecutive quarter, this is the lowest vacancy has been since mid-year 2003. Class “A” vacancy fell to 11.28% from 11.52% and Class “B” fell slightly from 26.32% to 26.12%. Absorption was positive despite the significant amount of space given back in 200 Public Square. Class “A” quarterly net absorption was 21,773 square feet and Class “B” quarterly net absorption was 15,250 square feet. Total absorption for the quarter was 37,023 square feet. Penton Media Building experienced the greatest absorption over the quarter with over 18,613 square feet. With leasing success continuing to be strong, KBS Realty Advisors decided it would be a great time to bring the building to market. The low vacancy should make the 20-story, 550,000 square foot Penton Media Building an attractive investment opportunity. Along with Penton Media Building, the CBD has continued to see a wealth of investment activity throughout the second quarter of 2007. The Eaton Center, a 616,000 square foot Class A office building also owned by KBS Realty Advisors, was sold this quarter to the Sovereign Group. The 1100 Superior Building is also on the market attracting interest from investors who are intrigued by its low vacancy. The 16-story, AT&T Building also sold this quarter as sale leaseback deal. With a few larger tenants in the market with sizeable requirements for quality space, new construction downtown is foreseeable and is receiving more attention Pope Edit: for Formatting. Also, Source?