January 9, 200817 yr I'm pretty sure that they will still have a lot of sewer work to do. They won't be able to start large-scale work until the strip club closes in mid-March.
January 24, 200817 yr The latest report from Grubb & Ellis is out: http://www.grubb-ellis.com/pdf/metro_off_mkttrnd/cleveland.pdf Note that the net absorption rate for downtown office space in the fourth quarter was 26,524 square feet and 145,327 square feet for the entire year. The only suburban market to see a gain in the fourth quarter was on the west side, which saw a net absorption rate of 22,762 square feet. For the entire year, the suburbs saw a net absorption of just 121,370 square feet! In other words, office users snapped up more space downtown in 2007 than in all the suburban areas combined. Some text from the latest report: It is anticipated that a space commitment made by one of the larger CBD prospects exploring alternatives, will solidify plans for the first new major office building since 1991. Several developers have plans for new office projects; two are part of a greater mixed use, live/work vision. Names circulating to anchor one or more of these developments are Eaton Corporation – requiring 275,000 square feet, Baker & Hostetler – seeking 200,000 square feet and Ernst & Young – with a 175,000 square foot need. Asking rates for downtown class A property, are expected to rise 4 percent in 2008, due to the anticipated occupancy rate increase to 90 percent for the first time since 2000. In a recent commitment for Class A quarters, a law firm leased the 57th floor of Key Tower, the highest office floor between New York and Chicago. It is believed that this premium location commanded a rental rate over $30 per square foot. In the East submarket, the largest of the Cleveland suburban markets, class A vacancy remains low at 8 percent and it is anticipated that continued limited availability will aid occupancy in the South market, as tenants look to satisfy space requirements elsewhere. In the East, two new, Class A projects were delivered in 2007, and although each had significant pre-leasing commitments, these properties represent among the largest remaining contiguous blocks of premier space. Full service rates range from the mid to upper $20s per square foot. No other significant developments are anticipated in the suburban markets, which may translate into a solid opportunity for building owners in the South, Southwest and West markets hoping to capitalize on the scarcity of space in the East. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
January 24, 200817 yr Wow, this is really great news! Considering the current economic conditions the country finds itself, for Cleveland to have a 90%+ downtown Class A occupancy rate is nothing short of amazing. If this sort of current momentum can be maintained through even an anticipated 2008 recession, could we see all 3 major projects (Wolstein's East Bank / Zaremba's Warehouse Master Plan /Jacob's Public Square Tower) be pushed through more aggressively and make "major" developmental strides in the coming year?
January 24, 200817 yr ^^We'll see. I sure am hoping that all these projects come to fruition. It would be a shame if Stark's project does not pan out because of the market... what he is planning is HUGE for Cleveland, and if the stars align just right, we might be able to see all the major projects announced built. We'll just have to wait it out, and hope that the developers are able to make the numbers work.
February 6, 200817 yr From Crains Cleveland Key to exit May Co. building for Higbee Bldg. By STAN BULLARD 10:46 am, February 6, 2008 KeyCorp (NYSE: KEY) plans to move 1,000 employees in downtown Cleveland across Ontario Street from the May Co. building to the Higbee Building. The banking company and Higbee Building owner Forest City Enterprises Inc. (NYSE: FCE.A, FCE.B) jointly announced that KeyCorp has signed a 15-year lease for about 221,000 square feet of office space at the landmark former department store at 100 Public Square. More at http://www.crainscleveland.com/article/20080206/FREE/193900832/1004&Profile=1004 clevelandskyscrapers.com Cleveland Skyscrapers on Instagram
February 6, 200817 yr Good news. Hopefully this will push the May Co. building's owners to redevelop it.
February 6, 200817 yr I loooovvveeee the first comment on that article. While it seems a bit, um, sophomoric at first, I think it's actually a good sign that downtown is being viewed as a desirable place to work by people besides those of us who are crazy about urban development. COMMENTS (1)Post a comment Posted by Jizy on 02/06/08 at 11:43AM I wish I could work downtown, better oportunities for meeting chicks who work and do not have kids.
February 18, 200817 yr I feel like this thread should have a different title, so I changed the subject line in this post... North Point complex sold in $114M deal By STAN BULLARD 4:30 am, February 18, 2008 HRPT Properties Trust of Boston has paid $114 million for the North Point Tower complex in downtown Cleveland. The sale price surpasses the $100 million market value the county assigns the complex for property tax purposes. The 17-story office tower and attached five-story building at 1001 Lakeside Ave. encompass 1 million square feet. HRPT likes to own office buildings with large numbers of government and office tenants, according to its web site. North Point houses the Cleveland office of legal titan Jones, Day, Reavis and Pogue, among others. The seller was Axa Equitable Life Insurance, a U.S. unit of Axa Group of France.
April 17, 200817 yr Not a super strong report on 1Q, but still another quarter of net absorption and a lower office vacancy rate. From CBRE's quarterly reporting. Cleveland’s Central Business District (CBD) had a strong first quarter in 2008, feeding off the momentum of 2007. The CBD experienced positive Class A absorption for another consecutive 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 combined with a tightening Class A product continues to attract outside investors with fresh capital. Deals expected to take shape in the first couple of months of 2008 should spark another exciting year. Overall vacancy dropped to 17.88% from 17.99% during the first quarter. For the sixth consecutive quarter, this is the lowest vacancy has been since mid-year 2003. Class A vacancy dropped to 10.73% from 10.76%and Class B vacancy decreased to 26.44% from 26.64%. Absorption in the CBD was positive again this quarter, contributing to the decline in vacancy. Class A quarterly net absorption was a positive 2,507 sq. ft. and Class B quarterly net absorption was 14,773 sq. ft. Total absorption for the quarter was 17,280 sq. ft. Class A positive absorption over the quarter was largely credited to space being taken up in One Cleveland Center, Penton Media Building and Key Tower. Class B buildings have a higher vacancy rate largely due to a major sublease available in MK Ferguson Plaza and the Growth Association, along with the move of the Convention & Visitors Bureau from the Terminal Tower into 50,000 sq. ft at the Higbee Building. Because successful leasing has continued to push down the vacancy in the CBD, we saw more sales activity starting off the year. North Point Tower changed hands in the first quarter and additional transfers are likely to happen during the second quarter. With several larger tenants looking for Class A space in the CBD, all having requirements in excess of 150,000 sq. ft., new construction in 2008 appears imminently possible by one of at least three developers. Scott Wolstein is currently preparing land in the Flats for his development project, while other developers are well underway by assembling the necessary land and financing to start other projects. This year could be an exciting year for new construction in the CBD! :clap:
May 17, 200817 yr The out-of-towners sure like our office properties: One Cleveland Center sold for $86 million Posted by Michelle Jarboe May 16, 2008 18:03PM Categories: Breaking News, Impact, Real estate Downtown skyscraper One Cleveland Center has sold for nearly $86.3 million - to the same company in negotiations to buy the former Illuminating Building at 55 Public Square. The company scooping up high-profile buildings in downtown Cleveland is Optima International, the U.S. relative of a Ukranian company involved with manufacturing and real estate. More at cleveland.com http://www.cleveland.com
May 17, 200817 yr Gee, maybe out-of-towners have a better appreciation for this city than many of the people who live here.... "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
May 19, 200817 yr Accounting firm plans to double office space Maloney + Novotny moving to Eaton Center RELATED LINKS Maloney + Novotny By STAN BULLARD 4:30 am, May 19, 2008 The Maloney + Novotny LLC accounting firm is preparing to put down roots as a full-floor tenant at Eaton Center when it doubles its office from a temporary workplace at Penton Media Center in downtown Cleveland. Matt Maloney, managing shareholder, said the firm is so crowded in its current office that it can't add staff until it moves in late June to the seventh floor of the skyscraper at 1111 Superior Ave. The company plans to add as many as eight this year to its 90-person staff, Mr. Maloney said. The 24,000-square-foot office at Eaton Center will give the firm room to grow, as it can accommodate 125 people, Mr. Maloney said. The firm is in about 12,000 square feet at Penton Media Center, which it moved to eight months ago when Mr. Maloney and 24 others exited North Point Tower to break with the RSM McGladrey firm. While Eaton Center works for the firm on several reasons, Peter Chudyk, a shareholder who runs Maloney + Novotny's tax department, said one is sentimental. “I worked there for 15 years at Hausser + Taylor. The familiarity of the location worked for us,” Mr. Chudyk said. Many of the accounting professionals who launched Maloney + Novotny hail from the former Hausser + Taylor, which became part of a national concern owned at various times by American Express, RSM and H&R Block. Maloney + Novotny considered “several very attractive” offers from suburban office buildings, Mr. Chudyk said, but decided to remain downtown. “Our commitment to be in downtown Cleveland is part of our commitment to get back to where we used to be as an Ohio-based regional firm,” Mr. Maloney said, referring to predecessor Hausser + Taylor. Staying downtown also was important to younger staffers, he said, and the firm believes it will aid in recruiting and retaining recent college graduates who want to work and live downtown.
May 31, 200817 yr IdeaStream Consumer Products Relocates World Headquarters to Downtown Cleveland CLEVELAND, May 30, 2008 /PRNewswire via COMTEX/ ----IdeaStream Consumer Products, LLC, a full-scale consumer products company specializing in serving the world's largest retailers and office products resellers, is relocating its world headquarters on July 1, 2008 to the Caxton Building in downtown Cleveland. Currently located in Parma, Ohio, the move will more than double IdeaStream's office space and align the company's innovative strategies to its physical workplace. "Coming from an office above a machine shop in Parma to one of Cleveland's most historic and well-respected buildings is a huge step for us," said Tony DeCarlo, president and CEO, IdeaStream Consumer Products. "Expecting aggressive growth in the future, we wanted our office to be a reflection of our business and personality." To better serve its growing number of employees and customers, the comfortable and spacious new office will include: multiple conference rooms, display racking for retail presentations, a photo studio and multiple storage spaces for samples and inventions. The downtown location also offers many benefits to the company, as a number of its key service providers are located in the area. Furthermore, the new headquarters will serve as a tool to attract Cleveland's best and brightest to fill the inevitable job openings in the future. With offices in Cleveland, Arkansas and China, IdeaStream's managing owners plan to build IdeaStream into a $200 million consumer products company in the next five to 10 years, eliciting a substantial number of prospective job openings. With this in mind, the new office in the Caxton Building is designed so IdeaStream can easily double the number of offices and workstations comfortably to sustain growth. IdeaStream worked with Richard Siegfried from Richard E. Siegfried Architects Inc. to create an office that strategically mimics the company's progressive work process. By listening to the needs of customers and consumers, IdeaStream responds quickly with original designs and practical, cost effective products. By investing in technology, understanding value position, and managing the supply chain through leading-edge point-of-sale tools, the company aligns its goals with that of its customers. This business cycle inspired the design layout of the new office to promote efficient and harmonious workflow. "Our new headquarters will help enhance productivity, recruit talent and will also be an interesting place for customers to come and visit us," DeCarlo said. "IdeaStream thrives on energy and creativity; Downtown Cleveland is just the perfect environment for that." More information about IdeaStream Consumer Products can be found at www.ideastreamproducts.com . http://www.foxbusiness.com/story/ideastream-consumer-products-relocates-world-headquarters-downtown-cleveland/
June 3, 200817 yr Good news, albeit lacking. I would really like to know how many employees they have and what their revenues are now, unless the numbers are so small that Mr. DeCarlo is concerned that few readers will take his company seriously. C'mon Mr. DeCarlo, you can tell us, we won't laugh. In fact we'll applaud you for making the big step forward to growing your company! "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
June 3, 200817 yr ^Agreed. For what it's worth, they're listed in D&B with $18m in annual revenues and 11 employees.
June 5, 200817 yr Wow, 11 employees generate $18 million per year? I hope they get paid on commission!! :) "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
July 10, 200816 yr 55 Public Square sells to buyer bullish on Cleveland Posted by Michelle Jarboe July 10, 2008 14:24PM Categories: Real estate Downtown Cleveland landmark 55 Public Square sold this morning to the same company that bought skyscraper One Cleveland Center earlier this year. http://blog.cleveland.com/business/2008/07/55_public_square_sells_to_buye.html
July 14, 200816 yr I wonder if they spoke with the Ritz about expanding and taking over the entire building?
July 21, 200816 yr In Crains this morning: Key Tower retains Squire Sanders By STAN BULLARD 4:30 am, July 21, 2008 Scratch Squire, Sanders & Dempsey LLP from the list of big tenants who might fuel downtown Cleveland’s new-building drive. David Goodman, Cleveland managing partner, said the law firm extended its eight-floor lease at Key Tower for 10 years and won expansion options. Mr. Goodman said he was glad to see plans for new downtown office buildings afoot and looked carefully because “it was not a foregone conclusion we would stay put.” He would not disclose terms.
July 21, 200816 yr And then this awesome news.... Yea more absorbtion by Clevelands new fortune 500 :clap:! (also in Crains): Cliffs eyes more downtown space As shareholder scrutinizes $10B merger deal, ore supplier to add offices in former BP Tower By STAN BULLARD 4:30 am, July 21, 2008 Cleveland-Cliffs Inc. may be preparing to drop Cleveland from its name, but the fast-growing mine operator and iron ore pellet-maker is planning a bigger city presence with larger offices and a new Public Square address. Although Cliffs declined comment, three sources familiar with the situation said the company is preparing to take two floors — a total of 60,000 square feet — of office space at 200 Public Square, formerly BP Tower. The sources said the steel industry supplier plans to maintain existing offices at the 1100 Superior Building downtown, where it occupies in excess of 120,000 square feet on more than three floors. More at crainscleveland.com http://www.crainscleveland.com
July 21, 200816 yr In Crains this morning: Key Tower retains Squire Sanders By STAN BULLARD 4:30 am, July 21, 2008 Scratch Squire, Sanders & Dempsey LLP from the list of big tenants who might fuel downtown Cleveland’s new-building drive. David Goodman, Cleveland managing partner, said the law firm extended its eight-floor lease at Key Tower for 10 years and won expansion options. Mr. Goodman said he was glad to see plans for new downtown office buildings afoot and looked carefully because “it was not a foregone conclusion we would stay put.” He would not disclose terms. So this would leave Baker Hostetler and Huntington Bank as the last two "major" tenants looking for space?
July 21, 200816 yr In Crains this morning: Key Tower retains Squire Sanders By STAN BULLARD 4:30 am, July 21, 2008 Scratch Squire, Sanders & Dempsey LLP from the list of big tenants who might fuel downtown Cleveland’s new-building drive. David Goodman, Cleveland managing partner, said the law firm extended its eight-floor lease at Key Tower for 10 years and won expansion options. Mr. Goodman said he was glad to see plans for new downtown office buildings afoot and looked carefully because “it was not a foregone conclusion we would stay put.” He would not disclose terms. So this would leave Baker Hostetler and Huntington Bank as the last two "major" tenants looking for space? And Eaton I believe.
July 21, 200816 yr And Eaton I believe. Yes Eaton apparently isnt yet a sure thing for the FEB. See FEB thread from this morning.
July 22, 200816 yr According to the PD, the 60,000 sf in 200 PS are for the new combined corporation's world headquarters, while the current digs will remain the headquarters for the iron ore business: Cleveland-Cliffs moving headquarters to 200 Public Square Posted by rmezger July 21, 2008 18:47PM Iron ore and coal producer Cleveland-Cliffs Inc. plans to add new offices in downtown Cleveland as it prepares for major growth. The company, now based at 1100 Superior Ave., hopes to lease two floors in the former BP Tower at 200 Public Square, making that its world headquarters. . http://blog.cleveland.com/business/2008/07/clevelandcliffs_moving_headqua.html
July 25, 200816 yr Squire Sanders renews lease at Key Tower Posted by Michelle Jarboe July 25, 2008 09:20AM Categories: Legal, Real estate Squire Sanders & Dempsey LLP has renewed its lease at Cleveland's Key Tower --ending months of speculation that the law firm could move to any of the new office buildings being proposed downtown. The firm has agreed to a 10-year renewal of its lease on approximately 150,000 square feet, according to the Richard E. Jacobs Group, which is an owner of the 57-story tower and which handles management and leasing there. More at http://blog.cleveland.com/business/2008/07/squire_sanders_renews_lease_at.html
July 25, 200816 yr I'm so glad to see Squire Sanders and Cliffs lease existing spaces. As awesome as it would be to see 10 "skyscrapers" under construction at the same time, we don't have the luxury to allow these companies to play muscial chairs. Great news.
July 25, 200816 yr So that leaves Eaton, Baker Hostetler, and Huntington for the proposed towers. Correct?
July 25, 200816 yr So that leaves Eaton, Baker Hostetler, and Huntington for the proposed towers. Correct? Huntington? Did I miss something?
July 25, 200816 yr Try the search function. Ba-ZING! clevelandskyscrapers.com Cleveland Skyscrapers on Instagram
July 25, 200816 yr Quick question" Could Huntington Building make a nice hotel ala old Statler or even Palmer House-esque? That gorgeous lobby needs to be something that can be appreciated 24/7, not 8-5, 5 days/week.
July 25, 200816 yr ^Let me put it this way, to the best of my knowledge, lots of leases are NOT being renewed at the Huntington Building because they haven't secured a contract with the management company. That might not mean anything, or it might be setting the building up for re-use. clevelandskyscrapers.com Cleveland Skyscrapers on Instagram
July 25, 200816 yr Quick question" Could Huntington Building make a nice hotel ala old Statler or even Palmer House-esque? That gorgeous lobby needs to be something that can be appreciated 24/7, not 8-5, 5 days/week. Yes. I love the lobby of the Palmer House. I would love to see the building reused as condo's or a luxury hotel.
September 17, 200816 yr bump "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
September 17, 200816 yr So, who's still searching for space downtown. I know of Baker Hostettler. Anyone else. If I rememebr Squires is staying at Key, E&Y to the Flats, Tucker Ellis to the Flats.
September 17, 200816 yr Huntington Bank Someone in the Stark thread mentioned Calfee Halter, but I don't think it's ever been formally reported in the PD or Crain's. Not to say it isn't true -- I just don't want to spread a rumor.
September 20, 200816 yr Is the Eaton move a sure thing??? if not is there a chance they could move into the building proposed for the lot across from the Renassiance Hotel??? Would they likely stay downtown?
September 20, 200816 yr Unfortuantely, Eaton doesn't want to stay downtown. Instead they apparently want to build a golf course in the suburbs and put their headquarters in the middle of it. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
September 20, 200816 yr I guess it depends if Eaton is looking for a World HQ or simply corporate offices. If all they are doing is storing 400 odd corporate, legal, financial, and accounting positions, then yea they should have a nice building downtown. If they are wanting to bring full operations with R&D and various other subsidiary HQs together then Beachwood would be best. Don't forget Eaton bought Westinghouse Electric in Pittsburgh and maintains an HQ there for the electrical division. It won't be going anywhere since they just expanded it..
September 29, 200816 yr Generally a pretty positive article about the downtown office market...Also some interesting news on Huntington Bank's plans Region's office market remains stable, Team NEO study finds Eaton Corp.'s potential departure from downtown Cleveland won't leave an irreparable hole in the city's market for office space, real estate brokers say. The city's office market remains strong after a few years of slow but steady growth. That's much the same story throughout Northeast Ohio, where roughly 88 percent of offices are filled, according to a report due out today from business-recruiting group Team NEO. Across 10 counties, the biggest occupancy boost has been in top-tier office space, the report found. This Class A space - the most modern and generally the priciest in the market - is nearly 90 percent occupied in downtown Cleveland, where plans are popping up for new buildings including the Ernst & Young tower near the east bank of the Flats. More at cleveland.com http://www.cleveland.com
October 20, 200816 yr From Crain's: Auctions grab real estate action Speedy process, price clarity offer benefits in tough market for commercial properties By STAN BULLARD 4:30 am, October 20, 2008 Among the profusion of local real estate auctions that sellers are promoting, Chartwell Group auctioneer Mike Berland’s Oct. 28 sale is a jaw-dropper. With 35 commercial properties in Ohio and Indiana, ranging from an eight-story office building at 3101 Euclid Ave. in Cleveland to 21 industrial parcels in Westlake, Richfield and Seville, the auction covers a large amount of Northeast Ohio real estate. More at crainscleveland.com http://www.crainscleveland.com
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