More news on the looming relocation of GMAC Financial to Downtown Cleveland from North Carolina:

 

http://www.bizjournals.com/triad/print-edition/2012/04/27/tower-owner-defaults-as-gmac-considers.html

 

That would be very sweet -- not just the jobs itself, but if marketed properly, it could show a company moving from NC to CLE, to launch a rushing trend! Personally, I never quite understood the attraction of NC or anywhere in the South....

 

Agreed but don't get me started.

Tis a good time to be Downtown

 

Downtown Cleveland offices snag new, expanding tenants, in a shift from decades of corporate flight

Published: Thursday, May 31, 2012, 7:55 PM    Updated: Thursday, May 31, 2012, 7:59 PM

Michelle Jarboe McFee, The Plain Dealer By Michelle Jarboe McFee, The Plain Dealer

 

CLEVELAND, Ohio -- Insurance brokerage Britton-Gallagher will close its Solon headquarters today, after 70 years in the East Side community. On Monday, the business will reopen in new space, on the 30th floor of the chisel-shaped One Cleveland Center office tower at East Ninth Street and St. Clair Avenue.

 

After decades of corporate flight to the suburbs, downtown Cleveland's office market seems to be reemerging as a contender.

 

Suburban tenants like Britton-Gallagher are eyeing the center city as a place to grow and recruit workers. Existing downtown businesses, including Quicken Loans and the Sherwin-Williams Co., are expanding. And some far-flung companies, including the U.S. arm of London-based staffing firm Alexander Mann Solutions, are considering deals that would bring hundreds of jobs to the central business district within a few years.

 

http://www.cleveland.com/business/index.ssf/2012/05/post_100.html

The comments following the article are surprising for cleve.com.

It's funny...throw some smiling faces, trash clean-up and add new attractions to lure people in and all of the sudden people aren't as abrasive to downtown.  This shift has really happened in the past year...think of what will happen over the next few years. Very cool!

But what about the drug dealers, prostitutes, and murderers!!! 

 

:)

It's funny...throw some smiling faces, trash clean-up and add new attractions to lure people in and all of the sudden people aren't as abrasive to downtown.  This shift has really happened in the past year...think of what will happen over the next few years. Very cool!

 

I liked the comment about the Downtown Cleveland Alliance. They have made an incredible difference. 

 

THANKS!!

 

But what about the drug dealers, prostitutes, and murderers!!! 

 

:)

 

Hey, whatever it takes to increase the occupancy of Class B and C buildings! :)

 

But seriously, I have noticed more office activity in my building (City Club), where can still get great rental deals (like $9-$12 per square foot!). They will renovate the office, relocate walls, etc. for you before you move in.

What I really liked about the article, well I liked all of it, was Tracey Nichols comment:

 

"The mayor says that the big wins are great, but really the bread and butter of growth in the city of Cleveland is in smaller companies," said Tracey Nichols, the city's economic development director.

 

This is how your really populate downtown with jobs.  Its like planting grass, you don't put just one big seed and hope it spreads.  Lots of little seeds do the job much better.

What I really liked about the article, well I liked all of it, was Tracey Nichols comment:

 

"The mayor says that the big wins are great, but really the bread and butter of growth in the city of Cleveland is in smaller companies," said Tracey Nichols, the city's economic development director.

 

This is how your really populate downtown with jobs.  Its like planting grass, you don't put just one big seed and hope it spreads.  Lots of little seeds do the job much better.

 

Agreed but having two HQ move to the 'burbs doesn't help.  I hope they learn the error of their way.  I just hope and pray their moves don't do us more harm than good.  I don't want Beachwood (or any other 'burb) to become another Buckhead, N. Dallas, Galleria, etc. area.

than good.  I don't want Beachwood (or any other 'burb) to become another Buckhead, N. Dallas, Galleria, etc. area.

 

Funny but I was just thinking a few weeks ago that if they start putting in any sort of high-density residential around that 271/Harvard exit the Highlands could go that way.  I do not hope for this, but if it happens and doesn't cannibalize downtown there is probably a market for it.

Funny but I was just thinking a few weeks ago that if they start putting in any sort of high-density residential around that 271/Harvard exit the Highlands could go that way.  I do not hope for this, but if it happens and doesn't cannibalize downtown there is probably a market for it.

 

And God knows we need more tacky bland apartment buildings in this city/region.

Buckhead = CLE should be so lucky...  Restaurants, shopping, zillion $ apartments, crazy rock star mansions. Seems to work pretty well in ATL.

Buckhead = CLE should be so lucky...  Restaurants, shopping, zillion $ apartments, crazy rock star mansions. Seems to work pretty well in ATL.

 

No.  Buckhead has killed downtown ATL.  The majority of commercial space in Downtown ATL is hotel.  In 25 years Buckhead has gone from being the projects to being an over priced community with hellish parking and virtually no walking.  Our restaurant scene is much better than ATL's.  They by far beat us in shopping, I would love to have Lenox Mall in the city proper.  They do have new cookie cutter apartments, but i'm not impressed.  Those "rock star" mansions are tacky, in a development and most likely in foreclosure.  If it works well in ATL, they can keep it!  The damn city is a gigantic suburb anyway.

Buckhead = CLE should be so lucky...  Restaurants, shopping, zillion $ apartments, crazy rock star mansions. Seems to work pretty well in ATL.

 

No.  Buckhead has killed downtown ATL.  The majority of commercial space in Downtown ATL is hotel.  In 25 years Buckhead has gone from being the projects to being an over priced community with hellish parking and virtually no walking.  Our restaurant scene is much better than ATL's.  They by far beat us in shopping, I would love to have Lenox Mall in the city proper.  They do have new cookie cutter apartments, but i'm not impressed.  Those "rock star" mansions are tacky, in a development and most likely in foreclosure.  If it works well in ATL, they can keep it!  The damn city is a gigantic suburb anyway.

 

Soooo true.  I spent a month on assignment in ATL.  What a dump.  A cheaply built tacky dump at that.

Some of those older Buckhead mansions are nice though! In Atlanta I think of Buckhead as Atlanta's 'second' downtown, similar to University Circle in Cleveland. With the increase in new housing and offices there it could become a Buckhead at some point.

Some of those older Buckhead mansions are nice though! In Atlanta I think of Buckhead as Atlanta's 'second' downtown, similar to University Circle in Cleveland. With the increase in new housing and offices there it could become a Buckhead at some point.

 

I hope not.  High rises along a wide high speed road don't make for an urban feel.  It feels more like a big Crocker Park or something.

Some of those older Buckhead mansions are nice though! In Atlanta I think of Buckhead as Atlanta's 'second' downtown, similar to University Circle in Cleveland. With the increase in new housing and offices there it could become a Buckhead at some point.

Yes, UC should be like that, we have Glenville and Hough right there was fabulous housing stock.  Little Italy, where is remained pretty stable and fairfax as a middle class neighborhood.  Wade Park/Glenville should boom as a fabulous neighborhood and fairfax should turn into middle class neighborhood.

 

All of this in the city proper.

Some of those older Buckhead mansions are nice though! In Atlanta I think of Buckhead as Atlanta's 'second' downtown, similar to University Circle in Cleveland. With the increase in new housing and offices there it could become a Buckhead at some point.

 

I hope not.  High rises along a wide high speed road don't make for an urban feel.  It feels more like a big Crocker Park or something.

 

I moreso meant a second major node activity, which it really already is. I didn't mean a carbon copy of anyone's Buckhead or Galleria area. If we get more high rise buildings here I'd be happy as long as they connec with the street and fabric well.

What I really liked about the article, well I liked all of it, was Tracey Nichols comment:

 

"The mayor says that the big wins are great, but really the bread and butter of growth in the city of Cleveland is in smaller companies," said Tracey Nichols, the city's economic development director.

 

This is how your really populate downtown with jobs.  Its like planting grass, you don't put just one big seed and hope it spreads.  Lots of little seeds do the job much better.

 

Agreed but having two HQ move to the 'burbs doesn't help.  I hope they learn the error of their way.  I just hope and pray their moves don't do us more harm than good.  I don't want Beachwood (or any other 'burb) to become another Buckhead, N. Dallas, Galleria, etc. area.

 

Buckhead was a nice area when I visited....Six years ago...has it changed that much?

 

Some of those older Buckhead mansions are nice though! In Atlanta I think of Buckhead as Atlanta's 'second' downtown, similar to University Circle in Cleveland. With the increase in new housing and offices there it could become a Buckhead at some point.

You say Buckhead (that name is weird by the way) is Atlanta's second downtown and comparable to UC so is it in the Actual city of Atlanta like UC is to Cleveland or counted as a suburb?

It's part of Atlanta.

Hypothetically, if Beachwood were to become part of Cleveland, would anyone oppose adding housing density there?  I think its a good idea regardless, and I don't see it ever competing (residentially) with downtown.  Still two very different environments.  But in general, I say the more the merrier.

If Beachwood became part of Cleveland, I'd probably still not set foot there.  The traffic is disgusting and has nothing to really offer me besides a headache.  With that said, possibly with more density they would be forced to come up with alternatives to driving...eyes rolling.

^The main element you guys are missing is rail transit.  Buckhead would not exist as it does -- high-density, largely vertical development -- without the MARTA station there.  Comparing places like Beachwood and Crocker Park to Buckhead is comparing apples to oranges because of the lack of direct rail transit to the former areas, which is why they are distinctly low density and suburban in character (and no, despite RTA’s bus = train vision, there is no bus line, even BRT, that will ever create the kind of density that exists in a Buckhead, or DC areas like Rosslyn, Crystal City or Friendship Heights).  ... The Red Line in University Circle does give the potential to a higher density Buckhead-like (Buckhead light) vertical development, which is why the plans for the high-rise Intesa development over/near the planned relocated Mayfield/Little Italy station materialized.

 

As for MTS' statement that Buckhead is killing downtown Atlanta, that's not really the case.  Decades ago, Atlanta planners envisioned this Sun Belt city as a regional convention center.  Prior to this, old downtown was a very small, old cluster of buildings.  As such, modern growth surrounded the old downtown Atlanta with a convention center, arenas/sports venues and huge hotels.  When MARTA was conceptualized in the 1960s/70s, Atlanta planners decided to create office hubs around various MARTA stations along the north Peachtree Street corridor with ritzy Buckhead being the largest (and still mushrooming).

 

As an older metropolis without a TOD policy like Atlanta's, it's doubtful University Circle would ever supplant downtown Cleveland's office-space-wise the way Buckhead has supplanted downtown Atlanta's.  This is particularly true with the renewed interest in downtown Cleveland as a residential, entertainment center with a trickling growth of smaller companies (often tech firms) coming into downtown from the suburbs.  The rebuilt Medical Mart Convention center should continue to fuel this trend.

 

Also remember than very few people live in downtown Atlanta, aside from hotel guests.  I would venture that their downtown full-time residential numbers are paltry compared to our 10,000-and-growing population. 

 

Folks, a little less Buckhead and a little more Downtown Cleveland Office Development news. Thanks!

Three days after publication and this still hasn't been posted? Really?? Youz guys are slippin'!  :police: The article also includes a cool picture from the Tower City RTA station......

 

Downtown Cleveland remains a major employment center: Sunday's Numbers

Published: Sunday, June 17, 2012, 9:00 AM    Updated: Monday, June 18, 2012, 6:40 AM

  By Rich Exner, The Plain Dealer

 

http://www.cleveland.com/datacentral/index.ssf/2012/06/downtown_cleveland_remains_a_m.html

 

 

There were a few of the "usual" a-hole posters, but a few were interesting. Including someone who posted this data:

 

area(sq. miles) Total Employment

 

Downtown 3.799 109,645

University Circle 0.963 31,175

Midtown 1.482 13,715

 

Another noted that downtown employment has fallen 16 percent since 2000, which I can believe.

^I would think more than 16%---but if its true, that's great.

 

From the article:

 

17 percent: Share of employed Cuyahoga County residents who work in downtown Cleveland.

 

17% is pretty low, if that's accurate, but its still the largest employment center in the county.  Is University Circle second? Anyone have numbers for 77-Rockside, Beachwood (at whatever is considered the 'center' if anywhere), and Westlake?

 

 

Northeast Ohio funds win $4 million in state New Markets Tax Credits, to aid business expansions

Published: Monday, July 02, 2012, 6:45 PM   

By Michelle Jarboe McFee, The Plain Dealer

 

 

CLEVELAND, Ohio -- Three Northeast Ohio investment funds won a combined $4 million in state tax credits meant to fill financing gaps for growing businesses in low-income areas.

 

Community development entities tied to the Greater Cleveland Partnership and port authorities in Cuyahoga and Summit counties could channel those credits into corporate expansions and job creation.

 

The Ohio Department of Development expects the $10 million in credits to support at least $25.6 million worth of investments in the state.

 

The local winners are:

 

• Cleveland New Markets Investment Fund II, LLC, which will receive $2 million. Controlled by Cleveland Development Advisors, an affiliate of the Greater Cleveland Partnership, the fund hopes to allocate some of its credits to the AmTrust Financial Services Inc. project at 800 Superior Ave. in downtown Cleveland. The New York-based insurer acquired an office building and is renovating it to house 1,000 workers, including employees of its GMAC Insurance subsidiary.

 

http://www.cleveland.com/business/index.ssf/2012/07/northeast_ohio_funds_win_4_mil.html

^I would think more than 16%---but if its true, that's great.

 

From the article:

 

17 percent: Share of employed Cuyahoga County residents who work in downtown Cleveland.

 

17% is pretty low, if that's accurate, but its still the largest employment center in the county.  Is University Circle second? Anyone have numbers for 77-Rockside, Beachwood (at whatever is considered the 'center' if anywhere), and Westlake?

 

last I checked independence is about 30-35,000 jobs.  ironically most of Independence's job center is locate within .65 miles of I-77.  but nothing like the expansive I271 corridor  where in some case the it is 1/2 mile from the road to the front door.

This could be huge. Several buildings that could be possibly converted into apartments.

 

Cuyahoga County details plan to secure 225,000-square-foot headquarters and sell 13 properties

CLEVELAND, Ohio -- Cuyahoga County will shake up the real estate market Monday, seeking new headquarters space in downtown Cleveland and listing 13 properties -- including 1.4 million square feet in or near the central business district -- for sale.

 

The county's long-awaited request for proposals, a document soliciting bids from property owners and developers, heralds deals that might reshape parts of downtown Cleveland and revive vacant or little-used buildings with apartments, new offices, hotels or restaurants. And it marks a change in strategy for a government entity that historically sold real estate based solely on price --  without considering factors such as economic development,  environmental issues, community impact or long-term tax generation.

 

Requiring 225,000 square feet of downtown office space, the county is one of the largest potential users to hit the market in years. The headquarters deal would involve more than 700 people, moving from the county's administration building, an auto title building on Superior Avenue and a handful of leased spaces downtown and on the west bank of the Flats.

 

For its new headquarters, the county is open to leasing or buying, in an existing building or at new construction, a representative of the CBRE Group Inc. real estate brokerage said during a Cuyahoga County Council committee meeting today. The brokerage, with help from the Chartwell Group and consulting firm Ariel Ventures, is representing the county in its consolidation and sale efforts.

 

http://www.cleveland.com/business/index.ssf/2012/07/cuyahoga_county_reveals_plan_t.html

It will be interesting to see the responses in Sept...

Odds on favorite for the county is still the former Huntington Building at 9th and Euclid, right?  Apart from some nice new construction on a surface lot, this is also my favorite option. 

Anyone know the status of Parksides move to the former Ferro corp building on lakeside?? While walking by today I never realized how moribund that side of the road is from ninth to twelfth. The only decent looking spot is right in front of the AT&T building.

I was wondering the same thing. They were supposed to complete renovation and move employees by summer.  Maybe they are still working on designs, etc.

This article created some speculation in my mind...

"The Cleveland office of the Grant Thornton LLP accounting firm plans to move to a full-floor office at One Cleveland Center from the Halle Building. With the move, Grant Thornton will exit a former department store converted to offices in the 1980s in the city's Theater District. Its destination is a chisel-shaped contemporary office tower dating from 1982 in downtown's NineTwelve District, the current name of the city's one-time finance district."

http://www.crainscleveland.com/article/20120823/SUB1/120829889

 

So....just after Forest City announces they are looking at a conversion for the Halle building to apartments, a company moves a few streets over? Call it wishful thinking, but sounds to me as if the likelihood of it happening isn't too far fetched (that's just the view I choose to take until I hear otherwise. Of course, I can be logical and think of the other reason, but choose not to :D)

 

Grant Thornthon has been looking to move for months now and has been considering several different locations and deciding which location worked best for them.

 

That makes me believe it is the other way around. Forest City knew Grant Thornton was leaving so they decided that they would entertain the possibility of residential conversion.

Alexander Mann Solutions chose Cleveland for U.S. operations hub after local push to top Raleigh, N.C.

Published: Friday, August 24, 2012, 8:00 PM

  By Michelle Jarboe McFee, The Plain Dealer

 

CLEVELAND, Ohio -- Alexander Mann Solutions was ready to make Raleigh, N.C., the center of its operations in the United States.

 

Then a Cleveland executive with global ties decided to pitch the London-based recruitment-services firm on his hometown. And in this battle between a southern growth state and a Rust Belt city, Cleveland -- strikingly -- triumphed.

 

The story of how Cleveland won Alexander Mann illustrates how the economic development system can -- and should -- work, said local and state leaders involved in the deal. What started with a personal connection turned into a full-court press, which brought the city the first major U.S. operation of a company well known in the United Kingdom and Europe.

 

Alexander Mann recently signed a short-term lease at the Tower at Erieview in downtown Cleveland. Now the company is planning its Cleveland operations center, serving North and South America. That center could employ 300 people and generate $12.9 million a year in new payroll within three years, according to information from an Ohio tax-credit application approved in April.

 

...

 

http://www.cleveland.com/business/index.ssf/2012/08/alexander_mann_solutions_chose.html

Yet another great article and reporting leg work by Michelle Jarboe McFee.

Now that a great economic development story!  And yeah Michelle is really about the only reson to read the Plain Dealer or Cleveland.com....

Great coup! That's two from North Carolina, including GMAC. Anymore from the Sun Belt/Bible Belt/Outer Belt??

^ is GMAC a done deal yet? Haven't heard anything about it in a while.

^ is GMAC a done deal yet? Haven't heard anything about it in a while.

 

It seems to be a done deal.  Funny I have seen more about this from the N. Carolina newpapers than the ones in Cleveland.  Cleveland moreso states the jobs that should/would end up in this building, while the Carolina papers are stating it more like they are losing all these jobs to Cleveland. 

I dont know that Ive seen a definitive local announcement. 

Great news.

 

^ is GMAC a done deal yet? Haven't heard anything about it in a while.

 

I would definitely like to get an update about them. Its been quiet

Great news.

 

^ is GMAC a done deal yet? Haven't heard anything about it in a while.

 

I would definitely like to get an update about them. Its been quiet

 

After a quick google search, this is the latest article I could find... From late May.

 

http://www2.journalnow.com/news/2012/may/25/chief-of-gmac-insurance-division-resigns-ar-2310186/

 

I really hope they move here lol

http://www.crainscleveland.com/article/20120903/SUB1/309039966

 

From Crains Cleveland Business:

 

"KeyCorp is indicating to developers and property owners that it might want to build a new headquarters in Cleveland, though some real estate brokers believe it may be expressing such interest in order to extract a better lease deal at its current home, the 57-story Key Tower.

 

A property development source familiar with the situation said KeyCorp has asked more than one downtown developer to provide office alternatives for the company. The source said Key wants less space than the banking company occupies now at 127 Public Square.

 

'They are not looking to downsize (staff), but want a more efficient layout,' the source said."

 

Thoughts?

Just in case you were wondering, Key Tower's base measures 210' x 140' or 29,400 square feet. The north and south sides of Key Tower taper with increased elevation, so by the time you get up to the top floor, the floorplates measure only about 130' x 130' or just 16,900 square feet (I seem to recall that's roughly the same floorplate size of each floor in the vertically sheer, 29-story Ameritrust "Brueur" Tower).

 

For comparison purposes only :), Jacobs' Parking Lot on Public Square measures 235' x 215' or 50,525 square feet at its base, or nearly 3 times more square footage per floor than the highest eight floors of Key Tower.

 

EDIT: if KeyCorp still wanted 690,000 square feet of office space (which it sounds like it wants less, maybe 600,000? Less than that?), then a sheer building with no setbacks and having 50,525 square foot per floor could fit all 690,000 square feet into a building just 13.7 stories tall. If they downsize their needs to 600,000 square feet, they could fit it into a building 11.9 stories tall. If you add a two-story atrium and ground-floor retail, 12 stories of parking (a parking space measures about 100 square feet, roughly the same as the floor space needed per office worker), now we're talking perhaps a 25- to 30-story building.

 

Just thought you'd like to know......

Is the public square lot being built on worth 26 empty floors in key tower? I want that to happen just as much as everyone else but just a thought after reading the article

KJP,

 

Completely hypothetical, but if they do decide to build a new building, what's the best use for this one? My instinct is to say apartments/condos but that's an AWFUL lot of apartments and that's a project that I would be concerned about having the possibility of flooding the market. So as much as I love the idea of a new office tower being built, what do we do with the old one if they go that route?

^I agree that it is probably a leverage ploy to get a better lease deal and I would imagine most developers realize this and aren't going to spend tons of resources to lure them...probably just barebones proposals.  Owners of Key Center will bend over backwards to retain somebody that leases that much space.

I remember an article a month or two ago that said due to poor financial results Key would be downsizing staff and looking at other ways to reduce costs. That could mean renegotiating its lease or looking for cheaper space.