Some perspective on how the NCB deal could impact the downtown office market:

 

Another vacant building could further depress office market

 

By Stan Bullard (Crain's)

 

4:30 am, October 27, 2008

 

The 21-story skyscraper that housed Ameritrust Corp. still sits empty today at East Ninth Street and Euclid Avenue, 16 years after the Cleveland office market endured its last merger of megabanks.

 

Real estate insiders expect the 31-story National City Center headquarters on the opposite corner from the Ameritrust building won't linger empty on the market as long as that long-dark structure, although the devastation for the Cleveland office market might be worse.

 

More at crainscleveland.com http://www.crainscleveland.com

Does anybody have the Crains article about Huntington moving to 200 Public Square?

Does anybody have the Crains article about Huntington moving to 200 Public Square?

 

 

Huntington moving to 200 Public Sq.

 

HQ shift to 45-story former home of BP includes right to affix bank's name to top

 

 

By STAN BULLARD

 

4:30 am, November 17, 2008

 

Huntington Bank has won the right to see its name in lights on Cleveland's skyline after committing to move its northern Ohio headquarters to 200 Public Square, but it will be a couple years before the Huntington Building at 917 Euclid Ave. loses its namesake tenant.

 

More at crainscleveland.com http://www.crainscleveland.com

Press release from the Harbor Group (owners of 200 Public Square):

 

 

FOR IMMEDIATE RELEASE

 

For more information, please contact:

Amy Ford, Marketing Manager

Harbor Group International, LLC

(757) 640-0800

 

HUNTINGTON BANK SIGNS HEADQUARTERS LEASE AT 200 PUBLIC SQUARE

 

NORFOLK, Virginia – November 17, 2008, Harbor Group International, LLC (“Harbor Group” or the “Company”) announced today that Huntington Bank has signed a new lease for a total of approximately 100,000 square feet at 200 Public Square.  Huntington will occupy approximately 8% of the office tower.  This lease brings 200 Public Square to 90% leased. 

 

The lease, which carries a term of 20 years, consists of two full atrium level floors, a third floor, and retail space for a Huntington Banking office on Euclid Avenue and in the atrium of 200 Public Square.  Huntington is expected to begin transitioning their regional headquarters as early as November 2010 with a completion date of November 2011. 

 

Within the terms of the lease, Huntington Bank will have the right to add prominent signage to the building, including the top of the tower. 

 

“We are thrilled that Huntington Bank has chosen to relocate their regional headquarters to 200 Public Square,” said Jordan Slone, Chairman and CEO for Harbor Group International. “We firmly believe we offer Cleveland’s most desirable office environment in terms of location, quality, service and amenities. Having Huntington Bank join our list of prominent tenants is strong confirmation.”

 

“This move exemplifies our ongoing commitment to Downtown Cleveland, our customers and our community,” said Jerry Kelsheimer, President, Greater Cleveland Region for Huntington Bank. “While Huntington has grown significantly, we still believe in a ‘community banking’ approach – where we invest in our local market.”

 

“The decision announced today by Huntington Bank is indeed welcome news and is another example that downtown Cleveland remains a competitive and attractive place for major corporations to do business,” said Mayor Frank G. Jackson.  “The other strong and clear message that resonates from this announcement is that Cleveland’s public/private partnership is alive and well.”

 

200 Public Square is a 45-story Class A office tower built in 1985. It contains approximately 1,270,000 square feet, a 757-space parking garage, several dining options, a fitness center, conference facility and an eight-story atrium. 200 Public Square is clad with Sunset Red Texas granite, in a saw tooth design accentuated with Sequoia granite. The building is located on Public Square in the central core of downtown Cleveland and is also accessible from Superior Avenue to the North and Euclid Avenue to the South. The property enjoys excellent access to the three primary arterial roadways, I-71, I-77, and I-90, which serve Downtown Cleveland and North East Ohio. 200 Public Square is within walking distance of Cleveland’s financial district, numerous hotels, restaurants, theaters, the Terminal Tower (station of the regional Rapid Transit System), retail, and all government facilities.

 

Harbor Group International, LLC is a private real estate investment and management firm which controls a portfolio of worldwide assets valued in excess of $2.4 billion.  Harbor Group is headquartered in Norfolk, Virginia with offices in New York, Chicago, London and Tel Aviv.  The Company’s real estate holdings include over 8.5 million square feet of commercial space and more than 13,000 apartment units.  For additional information, please visit www.harborgroupint.com.

###

 

And the signage renderings... not sure that I'm a fan of the offset logo (the small "H" on the sides isn't so bad):

 

 

:'(  :'(  :'(

 

I can't believe I'm a little sad to see this go from SOHIO to BP (  :whip:  ) to Huntington.

 

However, they are getting beautiful space on the inside and hopefully that will HOPEFULLY allow the Huntington building to be converted into a mixed use/Residential space.  In addition it's not a job cut and maybe Huntington can be a partner with Key, FCE, the City and County to improve Public Square.

 

 

This is good news.  Let's hope that the Huntington building is developed into condo units in the future.  The signage on 200 Public Square is not overbearing, and does not take away from the building's look (in my opinion). 

I guess Huntington has a think for pinkish granite buildings:

 

So does this move,  the unknown possibilities with the NCB Building as well as the not-set-in-stone development on Jacobs Property signal a move of the "Financial district" from East 9th and Euclid to Cleveland's Public Square area?

I guess my question is what is going to happen to that magnificent banking room at East Ninth.  Wonder if Huntington will keep it as a branch?

I guess my question is what is going to happen to that magnificent banking room at East Ninth.  Wonder if Huntington will keep it as a branch?

 

They have to.  That is the most beautiful bank I have ever been into!

this removes a huge hurdle in the way of repurposing the building for mixed use/residential

 

how awesome would it be to live in that building with the atrium and below-grade possible shopping?  very unique/cool

this removes a huge hurdle in the way of repurposing the building for mixed use/residential

 

how awesome would it be to live in that building with the atrium and below-grade possible shopping?  very unique/cool

 

Like Waaaaaaaaay cool!

 

That corner would go from Banking industry to mixed use / retail and you would see more people on the street and using the HL.

 

Those riders would then say, "it must be cool to live in THAT building" or "I wish I could (afford) to live down here)".

 

That building is A MAZ ING!

From one of the cleveland.com posters:

 

"The Huntington building will now be redeveloped as mostly residential. Everyone in the development community is talking about it. That will actually make this a net gain for downtown because the BP tower will be full and the Huntington Building will have new life as well. "

 

Is that true, that the development community is really planning on something for the Huntington building? 

HL is right out its door, that building is on an all too important corner to go dark.

 

I, for one, cannot wait to see with what the come up with.  My only request is that its all condo!  Chic people, Trendy folks and 40 somethings with no children, I believe, would kill to buy in that building.  Look at the interest the park building generated.  It was done right and the building is gorgeous.

are we really putting stock into something said in the comments section on cleveland.bomb?

^I've heard a lot of discussion about making that building mixed use residential... a lot.

HL is right out its door, that building is on an all too important corner to go dark.

 

I, for one, cannot wait to see with what the come up with. My only request is that its all condo! Chic people, Trendy folks and 40 somethings with no children, I believe, would kill to buy in that building. Look at the interest the park building generated. It was done right and the building is gorgeous.

 

There's plenty of condo development already.  Young trendy people aren't always well off.  In many cases, their careers aren't yet solid enough to sign any long-term deals.  Downtown needs breeders, as you call them, in the mating stage.  It needs 1br apartments that are reasonably priced, so these people can cyccle through.  Given that the huntington building has paid for itself many times over, this would be a perfect place for them.  If more young people meet and fall in love downtown, more will stay in the city to raise kids.

 

This is an updated article from Cleveland.com and is more or less the same thing. However it mentioned a possible government use for the Huntington building. Does anyone think that it could be a potential county government HQ? Is the county even looking for space or is that on that back burner?

 

The iconic building on Public Square will get a new accessory -- prominent logos for Huntington bank.

Updated 7:39 p.m.

 

Huntington Bank is leaving its building on Euclid Avenue for newer space and a deal to put its name on the former BP Tower.

 

A 20-year lease at 200 Public Square makes room for Huntington's name along the top of the 45-story building and on the atrium jutting into Public Square. Huntington's move will include 200 employees and take place by late 2011.

 

More at http://blog.cleveland.com/business/2008/11/huntington_moving_to_200_publi.html

^It's a possibility... particuarly if MMPI settles on the mall site.

Right, the County would be a potential tenant for the Huntington Building.  Not a bad notion.  I wonder if having part of the building be government occupied would impede any potential mixture of uses, though. 

 

 

The Huntington building is 1.4M sq. ft in total.  The articles says that after Tucker, E&Y, and Huntington Bank leave, the building will be at least 50% available.  If memory serves me correctly from the Breuer/New bldg. discussions, the County needs 300k sq. ft.  So the Huntington Building could probably take on the county and still have room for another use such as a hotel or residential.  I wonder if they could configure/partition the interior in such a way to make it work. 

^ I would imagine that having the county as a tenant would probably discourage non-office uses and even could make it hard to find other office tenants. Having county social services and mental health agencies in the building isn't really appealing to other tenants. However, I still think it is something that should be explored.

"And the Huntington Building will see vacancies jump above 50 percent with the bank leaving and Ernst & Young and Tucker Ellis & West planning moves to the Flats."

 

http://www.urbanohio.com/forum2/index.php/topic,1823.0/msg,344289.html

 

I'm thinking security standards would prevent sharing the building.

Any know if its been done before in any other city?

^ I would imagine that having the county as a tenant would probably discourage non-office uses and even could make it hard to find other office tenants. Having county social services and mental health agencies in the building isn't really appealing to other tenants. However, I still think it is something that should be explored.

Are those offices/departments in the current building?  If so will all county agency be housed in one building downtown?

^ It was my understanding that all county agencies would be located in a single building.

No they aren't all in the same building, and they don't necessarily need to be going forward.  I remember they wanted to consolidate offices under the old Ameritrust site plan, but I'm not sure it ever was to be 100%.  It would be impracticable to run the board of elections from a downtown location, at least on election nights.  I agree that social service and mental health agencies probably shouldn't be with the rest, or in a mixed-use building.  But overall I love the idea of the county moving into the lower floors of Huntington.  It would be a good repurposing of that awesome lobby.

I disagree...Euclid Avenue does not need any more 9-5 government/financial institutions taking up prime storefront/street level spaces.   

I disagree...Euclid Avenue does not need any more 9-5 government/financial institutions taking up prime storefront/street level spaces.   

 

I'm with you in spirit but that's kinda what this building is.  It has retail, but mostly facing inward not outward.  Even if the rotunda becomes a club, that corner isn't ideal for nightlife.   

 

I disagree.  Any place in a CBD is ideal with the right business and marketing.  Those for corners are gold!

I disagree...Euclid Avenue does not need any more 9-5 government/financial institutions taking up prime storefront/street level spaces.   

 

Who said that the county would take up street level space??  The huntington bldg currently has retail on the Euclid first floor. 

All of the talk on the real estate market range and downtown ammenities has been moved to the "Why Doesn't Downtown Cleveland Have..." Thread at

 

http://www.urbanohio.com/forum2/index.php/topic,11670.msg345348.html#new

 

Any discussion on specific retail can be had at the "Cleveland: Downtown Retail" Thread at:

 

http://www.urbanohio.com/forum2/index.php/topic,17818.msg345417.html#new

 

This thread is for discussion related to Office Development News.

 

City fears downtown office vacancies will rise as financial industry falls

Posted by Michelle Jarboe/Plain Dealer Reporter

November 21, 2008 23:45PM

 

Trouble on Wall Street could lead to vacancies on Cleveland's main streets, gutting floors of downtown office buildings as banks and financial-services companies merge, cut back or crumble.

 

Public officials and local real estate professionals are nervously watching for shifts beneath the city skyline. As they pinpoint potential holes, they're discussing ways to market downtown, lure companies from the suburbs and fill gaps with new businesses and, possibly, government offices.

 

More at

http://blog.cleveland.com/business/2008/11/city_fears_downtown_office_vac.html

 

Map of Downtown Vacancies:

http://blog.cleveland.com/pdgraphics/2008/11/22FGSPACE.pdf

 

http://blog.cleveland.com/pdgraphics/2008/11/22FGSPACE.pdf

I know I'm nitpicking, but was I the only one that noticed a couple of Cleveland's buildings changed their names or locations in this map?

The only error I noticed is that they have North Point Tower and Tower at Erieview switched.

But isn't #13 the Ohio Bell/Ameritech/AT&T Lakeside building, and North Point (Wachovia) is further north?

More inept reporting/research/Copy Edit. by the Plain Dealer!

 

But isn't #13 the Ohio Bell/Ameritech/AT&T Lakeside building, and North Point (Wachovia) is further north?

 

Yep, you're absolutely right - looks like they got that cluster mixed up.

Not really downtown but not sure where else to put this...

 

 

Lights go out in downtown digs as Graybar moves to Valley View

 

 

By STAN BULLARD

Crain's

 

4:30 am, December 1, 2008

 

The lure of a larger one-story building will take another longtime company out of the city of Cleveland after Graybar Electric Co. of St. Louis purchased a building in Valley View.

 

The electrical equipment distributor on Nov. 20 paid $4 million for the former Tyler Elevator Co. building at 6161 Halle Drive, according to Cuyahoga County land records.

 

More at

http://www.crainscleveland.com/apps/pbcs.dll/article?AID=/20081201/SUB1/312019989/1004&Profile=1004

 

Cleveland office rents rose slightly at end of 2008, bucking national trend

Posted by Michelle Jarboe/Plain Dealer Reporter January 06, 2009 18:05PM

Categories: Real Time News

 

Office rents in Greater Cleveland ticked up slightly during the final months of 2008, even as average rents fell in most major markets throughout the country.

 

A 0.3 percent rent gain meant Cleveland's office rental rates basically were flat during the fourth quarter, said Victor Calanog, director of research for real estate research firm Reis Inc.

 

More at

http://blog.cleveland.com/cribnotes/2009/01/cleveland_sees_slight_rise_in.html

 

About 100 Howard Hanna employees will move from the suburbs to a new regional headquarters downtown, the company says.

 

The real estate company, based in Pittsburgh, will move its regional office in June from Seven Hills to the former corporate offices of Realty One, which it acquired in October.

 

About 55 additional employees, which Howard Hanna hired from Realty One, already work in the office, at 800 W. St. Clair Ave. in the Warehouse District.

 

More at

http://blog.cleveland.com/business/2009/01/howard_hanna_to_move_100_emplo.html

I wonder if the cancellation of this note would free up money so Jacobs can consider moving forward with there proposed PS project?

 

Jacobs Group no longer owns stake in Key Center

by Michelle Jarboe/Plain Dealer Reporter

Tuesday April 21, 2009, 5:34 PM

 

The Richard E. Jacobs Group, which developed Key Center in downtown Cleveland, has relinquished its 50 percent stake in the skyscraper complex. Recent regulatory filings show that Wells Real Estate Funds, based in Georgia, took full ownership of Key Tower, the Marriott Downtown Cleveland hotel and the neighboring parking garage in October.

 

continued at>>>

http://www.cleveland.com/business/index.ssf/2009/04/jacobs_group_no_longer_owns_st.html

 

I was thinking about Key Tower the other day.  It was built in 89 right, and given a 20yr tax abatement.  Would that have anything to do with it?

I thought Jacobs was also doing a lot of estate planning, so this may be a part of that.

I'm posting this here instead of the Breuer thread as it is really the appropriate place... But the Rosetta Interactive Marketing Agency is in fact coming downtown, though not into the CBD.  It looks like they have an agreement in place to move their offices into the Plain Dealer building on Superior.  This is a pretty big win for Cleveland getting a company with 400 employees from the suburbs into downtown.  Doubt the paper will mention much of it, they seem to only want to mention companies that are going out.  This company incidentally is also growing like a weed.

Plain Dealer Building?? Why in the world would they move into that particular building with all the other openings around downtown? Im extremely happy to see this company moving into the city from the burbs but am a little confused to why they are going there. 

Plain Dealer Building?? Why in the world would they move into that particular building with all the other openings around downtown? Im extremely happy to see this company moving into the city from the burbs but am a little confused to why they are going there.

 

Baby steps perhaps?  That building is pretty suburban-esque.

^a few years back there was a lot of attention given to this area.  Live/work spaces were approved legislatively, developments such as the Tower Press took advantage of it, sidewalks were extended to provide patio dining for new restaurants and the like.

 

Basically, the seeds that were sewn a few years back provide the type of environment the company was looking for.  That, or the PD was having a firesale of leases.

I *believe* (and the individual I talked to wasn't 100% sure about this part), that they signed a shorter term lease (something like 5 years), and that they would like to end up in the CBD.  But the PD building has a lot of move in ready space... time, and somewhere with enough space, was a factor.

Plain Dealer Building?? Why in the world would they move into that particular building with all the other openings around downtown? Im extremely happy to see this company moving into the city from the burbs but am a little confused to why they are going there.

 

Baby steps perhaps? That building is pretty suburban-esque.

 

Very true

 

I guess i just didnt realize/think the PD would lease out space to other companies, I thought the building was just for them.