March 20, 201114 yr The property owners deserve as much blame as anybody else. Signing the tenants is only one part of the challenge of being a successful landlord. You have to retain them too. That means keeping your spaces competetive to the opportunities elsewhere. At the very LEAST, keep the common areas clean, change the carpeting every now and then, and go with the double-ply. This is an issue in Cleveland hardly limited to downtown. Take the airport, for example. The bathrooms are dirty, the floors are cracked, and the escalators are beat up. It's like we have this sense of entitlement such as places like NYC or LA where LGA or LAX can look like crap and people will still keep coming through. You don't see these kinds of conditions in places like Charlotte.
March 20, 201114 yr does he mention that Class A office space is over 90% occupied? No, because he says this; "In 1996, the downtown vacancy rate was 11 percent for Class A space and 19 percent for Class B. Today it's 18.7 percent for Class A space and 26.6 percent for Class B.
March 20, 201114 yr "It's bad, really bad" was not the mayor, it was Joachim Noah of the Chicago Bulls, commenting on downtown nightlife. The property owners deserve as much blame as anybody else. Signing the tenants is only one part of the challenge of being a successful landlord. You have to retain them too. That means keeping your spaces competetive to the opportunities elsewhere. At the very LEAST, keep the common areas clean, change the carpeting every now and then, and go with the double-ply. This is an issue in Cleveland hardly limited to downtown. Take the airport, for example. The bathrooms are dirty, the floors are cracked, and the escalators are beat up. It's like we have this sense of entitlement such as places like NYC or LA where LGA or LAX can look like crap and people will still keep coming through. You don't see these kinds of conditions in places like Charlotte. Full agreement. Standards matter.
June 6, 201114 yr I found this quite interesting and promising. Cliffs adds space at downtown HQ Staff at 200 Public Square now numbers 300 By STAN BULLARD 4:30 am, June 6, 2011 Cliffs Natural Resources Inc. has set a course to become the largest tenant at 200 Public Square in downtown Cleveland by leasing two recently emptied floors in the 41-story building and subleasing another from PNC Bank. Combined with Cliffs' existing global headquarters on floors 33, 34 and part of 32, the new space on floors 30 and 31 and subleased space on floor 5 give the company nearly 200,000 square feet in the building. It leased 70,000 square feet when the big iron ore producer moved its global headquarters to the building in 2008, said Brian Boehmcke, managing director of the tower's owner, Harbor Group International of Norfolk, Va. The added office space makes fast-growing Cliffs the largest tenant in the one-time headquarters of the former BP America. Huntington Bank will occupy 100,000 square feet in the structure this fall under a 2008 lease that gave it signage rights on the skyscraper. Huntington's sign went up last Friday, June 3. More at: http://www.crainscleveland.com/article/20110606/SUB1/306069982/1053/TOC&Profile=1053
June 6, 201114 yr ^Is it actually going to be called the Huntington Bldg. or did they just get the right to have the prominent signage?
June 6, 201114 yr ^^Huntington signed the lease for space and signage back in 2008 -- before Cliffs established such significant space there. ^Not sure. The article still calls it 200 Public Square.
June 6, 201114 yr Aso, I doubt that signage and naming rights would be that valuable to Cliffs given the type of business they're in. Huntington is a consumer company and has an advertising and image interest in having their name attached to a large and significant skyscraper.
June 6, 201114 yr ^Is it actually going to be called the Huntington Bldg. or did they just get the right to have the prominent signage? The article states that they have "ignage rights" which may not be the same thing as naming rights. Although in 5 years I'm sure it will either be known as the Huntington Bldg or still refereed to as BP Tower.
June 20, 201113 yr Rosetta continues to hire after acquisition by French company Growth may force marketing agency to expand downtown in old National City building By CHUCK SODER 4:30 am, June 20, 2011 Being acquired by a French company won't stop Rosetta Marketing Group LLC from expanding its Cleveland office. The interactive marketing firm plans to add 70 technology positions at its office on Euclid Avenue before the end of the year. This Thursday, June 23, at 5 p.m., Rosetta is hosting an open house for software developers, engineers and architects interested in joining the firm. The expansion might require Rosetta to take additional space within the building, said Kate Clegg, partner and vice president of marketing for Rosetta, which is based in Hamilton, N.J., but employs roughly 450 people in downtown Cleveland. The company already nearly fills the 80,000 square feet on the top six floors at 629 Euclid Ave., which is the old National City Bank Building. If Rosetta can secure the space, it likely will expand downstairs, “one floor at a time,” as the office grows, Ms. Clegg said. READ MORE AT: http://www.crainscleveland.com/article/20110620/SUB1/306209986 "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
July 9, 201113 yr This was an e-mailed press release. I find it interesting that Weston is heading up the district's search for new office space, possibly downtown! Weston owns a lot of surface parking lots in the Warehouse District as well as at Tyler Village in Asiatown, but I am not aware of any office buildings they own unless they are feeling charitable toward other downtown office building owners........ For Immediate Release: For More Information Contact: July 6, 2011 Roseann Canfora: 216-858-6510 Charisse Ausbrook: 216-574-8143 CMSD officials take big step towards selling historic headquarters Cleveland, Ohio— The Cleveland Metropolitan School District today released its Request For Proposals (RFP) for the relocation of its Central Administration office. This is the first step taken by the District to explore opportunities for finding efficient and economical space in which to house its central office staff. The Relocation RFP is a prelude to the second phase of a process that includes selling by auction the current CMSD administrative headquarters located at 1380 East 6th Street. At its June 28 meeting, the Board of Education approved a resolution to seek offers for a possible move of its central office administration to a downtown Cleveland office building or to consider renovating either East High or South High--two schools closed in 2010. The School District retained Weston Development Company of Cleveland to manage both the relocation effort and potential auction process. “This is an example of the new direction the District is taking to manage its assets and to maximize their value in providing a 21st century education for Cleveland’s students” said Mark Horton, President of Weston Development. Management of the District’s real estate is handled by its Operations Division and led by Patrick Zohn, the District’s Chief Operating Officer. “It is a new day for the Operations Division when it comes to how we conduct the business of the District,” said Zohn. “With the new convention center and Medical Mart across the street from our headquarters, we have an obligation to the citizens of Cleveland to consider the best and most cost-effective use of our current facility. That means considering ways that we might generate new revenue for our academic mission and also provide hotel development opportunity to support the rebirth of downtown Cleveland.” CEO Eric Gordon said the District’s exploration of options for relocating its central office staff is aligned with CMSD’s academic mission. “The Academic Transformation Plan compels us to move outside our comfort zone and do business smarter, better and more creatively” said Gordon. “We have shown improvement academically and have worked diligently to demonstrate fiscal responsibility. Our aggressive academic and fiscal strategies continue to send a message that we’re on the right path and positive things are happening for Cleveland’s students and families.” To request a copy of the Relocation RFP, contact Sandra Banks at Weston Development at 440.349.9000 or email: [email protected] ### "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
July 9, 201113 yr Rather than get a one-time pile of cash for the sale, wouldn't it be better for CMSD to keep the building and rent it out? its obviously a prime location and will bring a stream of revenue.
July 9, 201113 yr This is big news. I still say the Breuer Tower and Rotunda or the Huntington bldg. should be seriously considered by the county and the BOE for relocation.
July 9, 201113 yr The small floor plates in vacant Breuer Tower are better suited to housing/hotel uses and the tower has only 250,000 square feet of space, plus another 150,000 square feet in the Rotunda. Conversely the large floor plates in Huntington work better for large governmental agency departments like the board of elections or health/human services, but the building may not offer enough vacant space even though the building is a huge 1.3 million square feet. I don't know what the combined square footage needs of the county AND the school board might be. Depends on how many county functions you want to consolidate. I was about to suggest that the best solution might be to swap buildings, but.... After 2013 occupancy of the Huntington will fall to just below 50 percent (or about 600,000 square feet) after the office component of the Flats East Bank project is completed in 2013. I was going to suggest that those offices that occupy Huntington's 600,000 square feet move into Breuer and then have the county and the CEO move into Huntington! But even that won't work, since 600,000 doesn't fit into 400,000. However the 21-story East Ohio Building is completely vacant, and the 23-story Key Bank Center across East 9th Street will soon be 82 percent vacant. So if these buildings could be updated and connected, the East Ohio Building's 340,000 square feet and the Key Bank Center's 477,000 square feet could provide more than 800,000 square feet to someone like the BOE and the county. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
July 14, 201113 yr KeyBank Center headed for auction Asking price a mere $3.5M for downtown's 800 Superior Ave. site By STAN BULLARD 4:30 am, July 11, 2011 The lender controlling the 23- story office building at 800 Superior Ave. in downtown Cleveland is going the auction route to find a way out of owning KeyBank Center, better known as the former McDonald Investments Center. LNR Partners, the real estate financing and investment concern based in Miami Beach that took title to the 440,000-square-foot building in February 2010, has listed the property at Real Estate Development Corp.'s website Auction.com for an online auction running from 10 a.m. July 25 to 10 a.m. July 27. The property carries an asking price of just $3.5 million, well below the $44 million market value the Cuyahoga County assigns it for property tax purposes. READ MORE AT: http://www.crainscleveland.com/article/20110711/SUB1/307119996 "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
July 28, 201113 yr It sold. The article doesn't say to whom though. http://www.newsnet5.com/dpp/news/local_news/cleveland_metro/keybank-center-auctioned-off-for-7-15-m
July 28, 201113 yr Makes you wonder if the title was clear. May have been some tax or other liens and/or expensive code violations in need of attention. Then, of course, you have to consider that the buyer will have a heavy property tax bill on a building that is quickly emptying out, particularly when Calfee Halter moves to its new digs.
July 28, 201113 yr Seven million? Yikes. At least they got double the initial asking price! My only hope is that the low sale price will free up funding for improvements, lower rents, etc to fill the building up again. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
August 8, 201113 yr It sold. The article doesn't say to whom though. http://www.newsnet5.com/dpp/news/local_news/cleveland_metro/keybank-center-auctioned-off-for-7-15-m This doesn't answer the question either.... Mysterious bidder nabs KeyBank Center for $7.1M in online auction Buyer faces challenges with outfitting building By STAN BULLARD 4:30 am, August 8, 2011 In a surprise move in downtown Cleveland's long-ailing office market, an unidentified investor group has won the bidding for vacancy-riddled KeyBank Center, which formerly was known as McDonald Investment Center, via a lender-ordered online auction at www.auction.com. Michael Guggenheim, president of the Guggenheim Realtors brokerage in Beachwood, confirmed there was a successful bidder in the web auction that concluded July 27 for the building at 800 Superior Ave., which soon will have a vacancy rate of around 60%. However, he declined to identify the winning bidder because the group asked him not to disclose that information before the purchase closes. A Google snapshot of the www.auction.com page for the auction of the building indicates a final bid of $7.1 million, or double the $3.5 million initial bid price. Mr. Guggenheim wouldn't comment on the purchase price, though he said multiple parties were bidding for the building that dates from 1969. READ MORE AT: http://www.crainscleveland.com/article/20110808/SUB1/308089961 "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
August 8, 201113 yr I get not wanting to identify themselves until it closes. But in the mean time, I'll be waiting for my mysterious invite to a "dinner party" in the KeyBank building from my "host". (Sorry, planning another murder mystery, so they're on the brain right now!)
August 15, 201113 yr Sounds like there already may be some good news coming out of the Keybank Center auction. Jobs coming in from the suburbs would be great, but jobs coming from outside the region would really be something to cheer about, and something we need to see more of if the region is going to mover forward. In this week's Crains: NYC group wins bid for KeyBank Center And it may bring 200 more jobs to office site By STAN BULLARD 4:30 am, August 15, 2011 The embattled, 23-story KeyBank Center in downtown Cleveland not only is about to get a new owner, but it also stands to gain a new tenant that could bring more than 200 jobs from the suburbs. Two of the sources said relocating AmTrust Financial jobs to Cleveland from outside the region also could be in the mix. http://www.crainscleveland.com/article/20110815/SUB1/110819927/1004/rss01&rssfeed=rss01
August 15, 201113 yr That is awesome news. Per the article so no one here gets confused: 'AmTrust Financial — a small business insurer, workers' compensation coverage provider and warranty services concern — is not related to AmTrust Bank, the former owner of Ohio Savings Bank that now is part of New York Community Bank.'
August 15, 201113 yr That is terrific news! Now, what can be done to fill the old Ohio Gas Building across the street? Offices? Housing conversion?? "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
August 15, 201113 yr Great news! I'm hoping that we indeed do get jobs from outside of the region to relocate to this location. Enough musical chairs with existing Greater Cleveland businesses! I'm all for those that come to downtown from the suburbs, but there is no regional net gain by these types of moves. KJP- The EOG building should definitely be residential!! If the rental market tightens up even more downtown, I could see that type of conversion happening in the not so distant future!
August 27, 201113 yr http://www.grubb-ellis.com/SitePages/GetFileFromDB.ashx?type=9&id=1078 The Turnaround Takes Hold The Northeast Ohio offi ce market is gaining steam going into the second half of 2011. During the second quarter, there was 193,000 square feet of positive net absorption, the largest growth in occupancy since year-end 2008. In this same period, vacancy decreased by 30 basis points and ended the quarter at 21.9 percent. Currently, 628,000 square feet is under construction in the Central Business District (CBD), between two multi-tenant developments. The largest suburban development underway is the 580,000-square-foot Eaton Corporation in the East suburban market, which will be owner-occupied upon completion, after they relocate from the CBD in 2013. The CBD experienced some notable gains with 143,000 square feet of positive net absorption in the second quarter. Several technology companies, such as Rosetta and MCPc, wanted to be part of the downtown revitalization and relocated from the suburbs. MCPc began relocating from an industrial building in Strongsville to over 45,000 square feet in the Class B, Plain Dealer building at 1801 Superior. The location offers free parking and room to construct an additional 50,000-square-foot technology/distribution center. Cliffs Natural Resources expanded into the 50,000-square-foot sublease vacated by PNC Bank at 200 Public Square. Cliffs will continue their growth through the rest of the year, eventually occupying 200,000 square feet and becoming the largest tenant in the building. During the second half of the year, in the West suburban market, the developer of Crocker Park Lifestyle Center in Westlake is expected to receive fi nal approval for a new offi ce building. American Greetings recently renewed their commitment to remain in Northeast Ohio and announced plans for their corporate relocation from Brooklyn—a Cleveland suburb—to the mixed-use development. Ferro Corp. revealed plans to move their downtown headquarters to 6060 Parkland in Mayfi eld Heights, in the East submarket. Novelis vacated the 63,000-square-foot building in the fourth quarter of 2010, after consolidating operations in Atlanta. Ferro signed a long-term lease in Mayfield Heights and will be vacating their headquarters in the CBD building on Lakeside Road, near East Ninth Street. In the South market, BF Goodrich Landing Gear completed the move into the 40,000-square-foot building on 6225 Oak Tree in Independence. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
August 27, 201113 yr Dear Ferro, moving your HQ out of the central business district to suburbia is a trend that its time has passed. Are you in a time warp?
August 28, 201113 yr They're following the "leadership" of Eaton. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
September 15, 201113 yr Another small gain -- this time from Chardon, OH: Chardon law firm Thrasher, Dinsmore & Dolan opens downtown Cleveland office 4:30 am, September 15, 2011 Chardon law firm Thrasher, Dinsmore & Dolan has opened a downtown Cleveland office as part of an expansion during its 80th anniversary year. The office is at 1400 W. Sixth St., Suite 400. It's illustrative of what Thrasher Dinsmore calls “growth through difficult economic times,” as the firm has added eight attorneys in the last year. The additions have doubled the attorney count to 16. http://www.crainscleveland.com/apps/pbcs.dll/article?AID=/20110915/FREE/110919931#
September 15, 201113 yr Small...but a lot of smalls add up to be a lot, remember. Quality over quantity effect. Adds diversity in the economy in contrast to "mono culturing" it. Diversity breeds stability.
September 15, 201113 yr yes but I don't think either are active in the firm...Matt might be but not sure.
September 16, 201113 yr Matt Dolan is active in the firm, he's popped in to CWRU law a couple times over the past year (he's an alum).
September 19, 201113 yr ^ yeah i was going to ask, is that a dolan dolan? The name partner is THE Larry Dolan. He isn't active in the firm, as you can imagine. As archangel said, Matt is still active in the firm.
September 19, 201113 yr ^Paul of course is not active either...I had a case with him years ago when he was with the firm...he was representing Cablevision which at the time was owned by his uncle (I also think the local Dolan's had a significant investment as well).
September 20, 201113 yr Brandmuscle, a company in Beachwood, is looking for new office space and downtown Cleveland is one of their options. Here's hoping they choose downtown. http://www.crainscleveland.com/article/20110919/SUB1/309199991&template=mobile
September 20, 201113 yr Brandmuscle, a company in Beachwood, is looking for new office space and downtown Cleveland is one of their options. Here's hoping they choose downtown. http://www.crainscleveland.com/article/20110919/SUB1/309199991&template=mobile We need to get them downtown.
October 26, 201113 yr Latest market report from G&E.... http://www.grubb-ellis.com/SitePages/GetFileFromDB.ashx?type=9&id=1182 For those who like to rip on downtown's office building occupancies, I urge that you take note of this.... In the East suburban market along Chagrin Boulevard, local entrepreneur Mark Munsell acquired the ailing Commerce Park I, II and III. Purchased for $4 million, the three buildings total just over 180,000 square feet combined and are 40 percent occupied. Or the graph on the front page which shows downtown occupancies are holding steady while the suburban vacancies have risen above 20 percent. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
November 9, 201113 yr ^ Cool report Ken. What I found interesting was that the Class A rates were lower (slightly) in the CBD than in the East and South submarkets.
November 9, 201113 yr Brandmuscle, a company in Beachwood, is looking for new office space and downtown Cleveland is one of their options. Here's hoping they choose downtown. http://www.crainscleveland.com/article/20110919/SUB1/309199991&template=mobile We need to get them downtown. Coincidentally, Brulant (now Rosetta) used to be located on Park East next to BrandMuscle. And Rosetta has moved downtown, looks like someone is following suit.
November 9, 201113 yr Just a quick reminder when looking at those stats - it only includes space that is available to rent. A lot of buildings have been taken off the market that sit completely empty. The Ameritrust, Ohio Gas Building, everything on Euclid between 9th/12th. There is an enormous glut of empty buildings downtown which makes these reports very misleading.
November 9, 201113 yr Brandmuscle, a company in Beachwood, is looking for new office space and downtown Cleveland is one of their options. Here's hoping they choose downtown. http://www.crainscleveland.com/article/20110919/SUB1/309199991&template=mobile What's the title of the article so I can search for the free version?
November 9, 201113 yr Just a quick reminder when looking at those stats - it only includes space that is available to rent. A lot of buildings have been taken off the market that sit completely empty. The Ameritrust, Ohio Gas Building, everything on Euclid between 9th/12th. There is an enormous glut of empty buildings downtown which makes these reports very misleading. BEEN?? Some of those building have already been designated for future uses, ie. the Westin/LeMeridien. I don't think the report is as misleading as you think it is.
November 9, 201113 yr If I can find the figure, I'll repost - but the amount of "unavailable" vacant space is significant. There has been a lot of stories on potential uses for empty buildings, but very few anywhere close to being a reality. Just a quick reminder when looking at those stats - it only includes space that is available to rent. A lot of buildings have been taken off the market that sit completely empty. The Ameritrust, Ohio Gas Building, everything on Euclid between 9th/12th. There is an enormous glut of empty buildings downtown which makes these reports very misleading. BEEN?? Some of those building have already been designated for future uses, ie. the Westin/LeMeridien. I don't think the report is as misleading as you think it is.
November 9, 201113 yr The Ameritrust building alone is 800,000 sf. That would increase the amount of vacant space almost 20%.
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