January 15, 20196 yr According to Jones Lang Lasalle new Cleveland 2018 Skyline Report, One Cleveland Center is ten percent vacant. https://www.us.jll.com/content/dam/jll-com/documents/pdf/research/americas/us/JLL-2018-Cleveland-Skyline-report.pdf
January 15, 20196 yr That is an awesome chart. I love how it conveys the size of buildings, available/leased spaces, and descending rents. The Ellipse (45 E. 9th Street) is completely vacant? Wow. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
January 16, 20196 yr That is a really cool chart! It also makes it obvious to me that we have a few buildings left that should be under consideration for complete rehab or residential conversion- the Superior Building, The Rockefeller, 55 Public Square, Western Reserve, Lakeside Place, 1215 Superior, AECOM Center (didn't this one just get redone?), Post Office Plaza- all have high vacancy rates.
January 16, 20196 yr Yeah, it's a pretty odd building, really, and won't be easy to repurpose. I don't think I'd shed many tears if it were replaced with something well designed with better street presence and a less monolithic feel, honestly.
January 16, 20196 yr It could be used for something like a data center in the interior--which doesn't need windows. And then the center could be wrapped on all four sides by offices, residential, or some other use, with a hallway on all four sides of the multi-story data center.
January 16, 20196 yr I'm cross-posting this with another article about new real estate investment firms opening offices in Cleveland. This says as much about Greater Cleveland's economy as it does about the downtown office market... Bellwether Enterprise opens new headquarters in downtown Cleveland https://www.rejournals.com/getdoc/ee8334bb-5ed5-4219-87b5-5b479740dc4d/bellwether-enterprise-opens-new-office-in-downtown.aspx "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
January 16, 20196 yr 5 hours ago, bwheats said: According to Jones Lang Lasalle new Cleveland 2018 Skyline Report, One Cleveland Center is ten percent vacant. https://www.us.jll.com/content/dam/jll-com/documents/pdf/research/americas/us/JLL-2018-Cleveland-Skyline-report.pdf Fantastic chart. The best visual I've seen for me to understand what is available and what is occupied.
January 16, 20196 yr Moved my post to the Flats East Bank thread. I'm willing to bet Wolstein took out the mortgage on his Renaissance Center and sold shares to a partner to raise capital for Flats East Bank. Edited January 16, 20196 yr by KJP "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
January 17, 20196 yr Some good movement the past 6 months in Cleveland office development with Market Square plaza, officially closing yesterday. Not exactly downtown, but still exciting as they are projecting new high end office space. Centennial project, the former Huntington building, seems to be off & running with a solid team on board for design/construction/leasing. The wild cards in my opinion remain: - Tower at Erieview, mostly vacant. Purchased last summer by Kassouf family. Possible conversion to apartments in a portion of the building. Some redevelopment of the Galleria which is connected. No real news lately on the progress & intent - 45 Erieview. Corner of 9th & St Clair. Building is totally empty. It has some challenges but this is a real failure on many fronts to allow a major corner to be a dead spot. No news on progress or intent - 55 Public Square. Optima explored selling the building last year, same time it was trying to sell AECOM/former Penton Media building. 55 PS never sold. This building is mostly vacant. Building and garage have a wealth of deferred maintenance. Old restaurant out front has been closed for a few years now. Garage is so bad it may need torn down & rebuilt. Building needs entirely reskinned. Major reinvestment required before they ever begin to do any leasing. Adding up these 3 buildings, it's a big block of dead space in pretty critical locations around the downtown. Definitely big potential but I think they need to land national tenants that opt to come to Cleveland. These buildings aren't going to fill up otherwise.
January 17, 20196 yr ^ I believe the 55 garage is owned separately from the office building too. Although, I might be confusing something else.
January 17, 20196 yr 1 minute ago, freefourur said: ^ I believe the 55 garage is owned separately from the office building too. Although, I might be confusing something else. you may be right. It's a disaster though whomever owns it. It's a chicken or egg scenario though - do you fix the garage and then try to lease up the building? Or do you lease up the building and try to fix the garage?
January 17, 20196 yr Just now, gottaplan said: you may be right. It's a disaster though whomever owns it. It's a chicken or egg scenario though - do you fix the garage and then try to lease up the building? Or do you lease up the building and try to fix the garage? Rebuilding a parking garage puts a big expense into the project that may be hard to recuperate. I haven't been in the building for about 10 years and even then it felt dated and worn.
January 17, 20196 yr Looks like the parking garage at St. Clair and West 3rd is owned by OPTIMA 55 PUBLIC SQUARE LLC. I say "looks like" because the garage is divided among three parcels, including one that includes the 55 Public Square tower. It and another parcel were consolidated with a parcel whose number doesn't produce any search results. BTW, the parking lot at the corner of St. Clair and West 3rd, in crotch of the above parking garage, is owned by Kassouf. If a new parking garage with a square footprint was developed in that Optima/Kassouf space, Kassouf will demand top dollar (or higher) either as a seller or as a partner. And if Kassouf actually redevelops Erieview as promised, I'll be shocked. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
January 18, 20196 yr 23 hours ago, freefourur said: Rebuilding a parking garage puts a big expense into the project that may be hard to recuperate. I haven't been in the building for about 10 years and even then it felt dated and worn. Any updates will be hard to recuperate. But how likely is a new tenant to sign with the garage in it's current state? Not at all. Too many other options exist in Cleveland. The owner is pursuing a refinance deal to put something like $40 million back into the building - garage, lobby, mechanicals, amenity floor, new exterior skin...
January 18, 20196 yr The county has talked about building a new garage in that area. Why not propose replacing the 55 Public Square garage with a larger one that fills both the 55 PS garage property and the Kassouf property? The new garage is needed even if the Justice Center/jails move to a new location (which is a long way off). And I think we all hope that some of those nearby surface lots are going to go away in the coming years as a result of construction activity. A new, larger garage here can reduce the impact on local businesses during construction. BTW, 55 PS gets a new garage out of the deal too. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
January 26, 20196 yr Cleveland Office Market Sees Lowest Vacancy Rate in 17 Years “We see the Cleveland office market remaining fairly flat this year." By Katie Hinderer | January 24, 2019 at 05:26 AM Large businesses, that have traditionally been suburb-based, have begun to look more actively at the CBD. “We’re seeing some of Cleveland’s large corporate employers that have headquarters in the suburbs test the CBD waters by leasing small R&D/strategy office space,” Orgovan said. “One such project is Progressive Insurance, which leased around 9,000 square feet in Downtown Cleveland’s Warehouse District, which will move around 40 of their employees to the CBD.” MORE: https://www.globest.com/2019/01/24/cleveland-office-market-sees-lowest-vacancy-rate-in-17-years/?slreturn=20190026113959 Edited January 26, 20196 yr by KJP "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
February 9, 20196 yr I guess this answers the question when PNC was planning to move its east-suburban office workers downtown (although other text in the article suggest the move is still occurring)..... New York real estate development firm Time Equities Inc. plans to update the office building at 23000 Millcreek Blvd. in Highland Hills after acquiring it from PNC Bank. PNC emptied the building as it shifted staffers from suburban locations to PNC Center downtown and its West Side operations center. https://www.crainscleveland.com/real-estate/highland-hills-building-sells-75-million "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
February 13, 20196 yr More good news from a few days ago (hey, you don't have to wait for me to post news!).... February 10, 2019 04:00 AM UPDATED 16 HOURS AGO Bellwether Enterprise expands in downtown Cleveland STAN BULLARD Bellwether Enterprise, a commercial realty mortgage banking concern that was launched with only seven staffers in 2008, just moved to a new national headquarters on the 24th floor of One Cleveland Center, 1375 East Ninth St., to gain some room to grow. The firm now has 80 employees here and national reach, with a total of 28 production offices around the country and 300 total employees. The move to a full floor also allowed the company to put all of its Cleveland staff in one building as its unit for mortgage brokers serving Northeast Ohio had moved earlier to One Cleveland Center's 23rd floor. That earlier move provided short-term relief to workers in its former suites across the street at IMG Center, 1360 E. Ninth St. The new move boosts its floor space from 16,000 square feet to 20,000 square feet. MORE: https://www.crainscleveland.com/finance/bellwether-enterprise-expands-downtown-cleveland#adunit_path=news/finance "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
February 13, 20196 yr 21 minutes ago, KJP said: More good news from a few days ago (hey, you don't have to wait for me to post news!).... February 10, 2019 04:00 AM UPDATED 16 HOURS AGO Bellwether Enterprise expands in downtown Cleveland STAN BULLARD Bellwether Enterprise, a commercial realty mortgage banking concern that was launched with only seven staffers in 2008, just moved to a new national headquarters on the 24th floor of One Cleveland Center, 1375 East Ninth St., to gain some room to grow. The firm now has 80 employees here and national reach, with a total of 28 production offices around the country and 300 total employees. The move to a full floor also allowed the company to put all of its Cleveland staff in one building as its unit for mortgage brokers serving Northeast Ohio had moved earlier to One Cleveland Center's 23rd floor. That earlier move provided short-term relief to workers in its former suites across the street at IMG Center, 1360 E. Ninth St. The new move boosts its floor space from 16,000 square feet to 20,000 square feet. MORE: https://www.crainscleveland.com/finance/bellwether-enterprise-expands-downtown-cleveland#adunit_path=news/finance Let's hope that this is a Bellwhether for the Cleveland economy. I'll see myself out.
February 19, 20196 yr I just heard that The Century Federal Credit Union is moving it's branch and ATM from the 9th floor of the Landmark Building down to the 1st floor. They should be moved in by mid-March. It'll be nice to see something there on the corner of Ontario and Prospect!!! A bit more "life" in that area.
February 20, 20196 yr what an excellent chart that is. I've never seen anything like it. and you wonder why? its so clear and concise. a great at a glance guide for anyone shopping for office space downtown.
February 22, 20196 yr Article from last Fall. Did I miss Somera Road's office conversion in Cleveland? Conversion to what? Where? SR owns The Ellipse (aka 45 Erieview Plaza) which is completely empty. Were they planning to do something about this building?? Somera Road is latest firm trying to raise $500M to invest in Opportunity Zones By the end of the year, the company expects to close on a creative office conversion deal in downtown Cleveland.... https://therealdeal.com/miami/2018/10/31/somera-road-is-latest-firm-seeking-to-raise-500m-for-opportunity-zones-fund/ Edited February 22, 20196 yr by KJP "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
March 5, 20196 yr Another company going out to pasture. It's office is at 800 Superior, a Class C building... AmVenture Insurance Agency moves its offices to Solon https://articles.cleveland.com/solon/index.ssf/2019/03/amventure_insurance_agency_mov.amp "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
March 6, 20196 yr With the name and address they're coming from, I'm guessing they spun off from Amtrust. 4,500 sq ft - I couldn't imagine its very many employees moving though. Wouldn't be surprised to find out who ever is running it lives in Solon.
March 6, 20196 yr 21 minutes ago, PoshSteve said: With the name and address they're coming from, I'm guessing they spun off from Amtrust. 4,500 sq ft - I couldn't imagine its very many employees moving though. Wouldn't be surprised to find out who ever is running it lives in Solon. Youre correct. Buddy of mine is with them.
April 13, 20196 yr Growing McManamon Insurance moves to downtown Cleveland https://www.crainscleveland.com/finance/growing-mcmanamon-insurance-moves-downtown-cleveland "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
April 13, 20196 yr 25 minutes ago, KJP said: Growing McManamon Insurance moves to downtown Cleveland https://www.crainscleveland.com/finance/growing-mcmanamon-insurance-moves-downtown-cleveland Another example of commercial moving in while we will see industrial moving out.
April 13, 20196 yr 12 hours ago, KFM44107 said: Another example of commercial moving in while we will see industrial moving out. It might be a slow replacement. Voss, Jakprints, Chilcote, and Produce Packaging are taking with them about 1000 jobs. I wonder how many people PNC moved downtown. And the new owners of the Chilcote block talked about moving their mortgage(?) company into that space.
April 13, 20196 yr On 3/5/2019 at 7:12 PM, PoshSteve said: With the name and address they're coming from, I'm guessing they spun off from Amtrust. 4,500 sq ft - I couldn't imagine its very many employees moving though. Wouldn't be surprised to find out who ever is running it lives in Solon. Chagrin Falls.
April 13, 20196 yr 2 hours ago, Mendo said: It might be a slow replacement. Voss, Jakprints, Chilcote, and Produce Packaging are taking with them about 1000 jobs. I wonder how many people PNC moved downtown. And the new owners of the Chilcote block talked about moving their mortgage(?) company into that space. I know alot of people are concerned about the loss of industrial but I don't think anyone here really realizes the magnitude of jobs added to existing companies in Cleveland in the last two years alone. My uncle works for a metal fabrication company on the floor. In 2015 they had about 700 workers on the floor. Today's that number is closer to 2000. He says he has to get to work 30 minutes early if he even wants to get a spot in the parking lot. This story is much more common than you would imagine, and none of it really makes the news. My father used to be a defense lawyer for alot of the machinery companies in the city and he's heard similiar things everywhere. Whether it's a small company ramping up from 15 to now 30 workers or my much larger example. Edited April 13, 20196 yr by KFM44107
May 4, 20196 yr Interesting 2019 1Q office market report in many respects. One item of general interest is that, while the overall downtown office vacancy is higher than the suburbs, the Class A vacancy is four basis points better than the suburbs and rents are higher than the 'burbs. At 11 percent, downtown's Class A vacancy rate is near the magic number when a spec office building might be justified. It's why Stark doubled the size of the office component of nuCLEus to 400,000 sf while cutting the residential in half and eliminating the hotel. Also, Market Square will add 150,000 sf of office space to the urban core. If downtown office users keep growing, suburban office tenants keep moving downtown, and New York/coastal office users keep moving to Cleveland, there may be demand for even more Class A products.... http://www.ngkf.com/Uploads/FileManager/1Q19-Cleveland-Office-Market.pdf Edited May 4, 20196 yr by KJP "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
May 4, 20196 yr https://www.us.jll.com/content/dam/jll-com/documents/pdf/research/us-cleveland-office-insight-q1-2019-jll.pdf JLL reports it at 13%. They stated in the report that a good chunk of Class A became available because "Fifth Third renewed and downsized from 104,000 to 37,000 square feet." Were there a bunch of cuts there that I missed? Edited May 7, 20196 yr by cle_guy90
May 8, 20196 yr Ad, marketing firm with Akron roots adds office in downtown Cleveland Geometry Global, part of an international advertising and marketing agency, with a legacy home in Akron, plans to add a second office in downtown Cleveland by 2020. That's the upshot of Post Office Plaza owner K&D Group of Willoughby announcing Tuesday, May 7, that Geometry plans to move 100 jobs to the building at 1500 W. Third St. after leasing more than 14,000 square feet of office space on its fourth floor. Doug Price, K&D Group CEO, said in a May 7 phone interview, "We're real excited. We've been working with them for some time. They felt they needed to be in Cleveland." https://www.crainscleveland.com/real-estate/ad-marketing-firm-akron-roots-adds-office-downtown-cleveland
May 8, 20196 yr ^ Interesting story. It sounds af if GG is giving their worker almost a choice of work location. Remember: It's the Year of the Snake
June 1, 20196 yr They're locating in the Warehouse District.... Top of Mind Networks Announces New Cleveland Office May 21, 2019 ATLANTA--(BUSINESS WIRE)--May 21, 2019-- Top of Mind Networks, a leader in customer relationship management and market automation software for the mortgage lender and real estate industries, is pleased to announce the opening of its new office in Cleveland, Ohio. This new Technology Center represents the continued growth of Top of Mind Networks and its willingness to invest in additional resources to meet the growing needs of its client base around the country. The Cleveland office will be the company’s software development hub, while the corporate office will continue to be based in Vinings, Ga., in the metro Atlanta area. https://www.apnews.com/Business Wire/a73ceb7a9e7d4ff49ba69cbbbc9bccf0 "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
June 2, 20196 yr ^The Cleveland office will be the company’s software development hub, while the corporate office will continue to be based in Vinings, Ga., in the metro Atlanta area. This is notable. They could have put software development in Boston or Austin or San Jose. But they chose Cleveland.
June 12, 20196 yr More fallout related to Optima Ventures. It looks like we’re very fortunate that they’ve already divested many of their Cleveland properties. https://m.clevescene.com/scene-and-heard/archives/2019/06/11/how-ukrainian-oligarchs-secretly-became-the-largest-real-estate-owners-in-downtown-cleveland?utm_source=feature&utm_medium=home&utm_campaign=hpfeatures&utm_content=HomeFeaturedStoriesCustomMobile They do still own 55 Public Square and One Cleveland Center as well as having some amount of ownership of the Westin. Edited June 12, 20196 yr by Boomerang_Brian When is the last time I-71 turned a profit?
June 19, 20195 yr Place matters. People like being close to each other, close to stuff, able to collaborate, innovate.... Jobs moving to places like downtown Cleveland, University Circle https://www.crainscleveland.com/government/jobs-moving-places-downtown-cleveland-university-circle "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
June 19, 20195 yr ^I agree. Based on data from the Brookings Report, cited above, Where jobs are concentrating and why it matters to cities and regions (https://www.brookings.edu/research/where-jobs-are-concentrating-why-it-matters-to-cities-and-regions/). The report has a map of all cities, color-coded, by 2004-15 change. I instead chose 2012 to reflect life in the post-recession world. Change in Job density in job dense areas from 2012 to 2015: Akron: -19% (see note under Seattle) Chicago: 6% Cincinnati: 15% Cleveland: 13% -- ranked 17 out of 94. Columbus: 9% Dayton: -1% Detroit: 17% Philly: 13% Pittsburgh: -6% San Francisco: 30% -- the highest on the list Seattle: -21% --the worst on the list of 94 metros. Akron was 2nd worst. Toledo: 0% All US Metros: 7% I also ranked the raw job densities for 2015 for the 94 cities. Cleveland came in at a respectable 18. Here are the top 30: Rank City 2015 Density 1New York, NY-NJ-PA 138,541 2San Francisco, CA 54,375 3Urban Honolulu, HI 51,554 4Chicago, IL-IN-WI 42,428 5Seattle, WA 35,122 6Philadelphia, PA-NJ-DE-MD 25,338 7Pittsburgh, PA 19,320 8Minneapolis, MN-WI 17,631 9Los Angeles, CA 17,386 10Las Vegas, NV 15,633 11Denver, CO 15,259 12New Haven, CT 15,000 13Portland, OR-WA 12,978 14Houston, TX 12,556 15Hartford, CT 12,471 16Baltimore, MD 12,397 17New Orleans, LA 11,754 18Cleveland, OH 11,578 19San Jose, CA 11,133 20Nashville, TN 10,143 21Miami, FL 9,020 22Dallas, TX 8,896 23Atlanta, GA 8,641 24Charlotte, NC-SC 8,092 25Detroit, MI 8,071 26San Diego, CA 7,937 27Rochester, NY 7,635 28Austin, TX 7,502 29Cincinnati, OH-KY-IN 7,484 30Albany, NY 7,253
June 20, 20195 yr "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
June 20, 20195 yr ^Awesome! Nice to know they have a nice, modern new place to sit around and plan projects that will never happen! ? Edited June 20, 20195 yr by jeremyck01
June 23, 20195 yr Booming? No. But Cleveland's office market remains steady June 21, 2019 | Dan Rafter The biggest office sale in Cleveland in the first quarter of the year came relatively late: Oaktree Capital Management’s $51.5 million purchase of PNC’s operations at 4100 W. 150th St. But while that transaction grabbed most of the headlines, it wasn’t the only big office sale of the first quarter here. In the suburbs, Time Equities purchased PNC’s property at 23000 Millcreek Blvd. in Highland Hills for a $7.5 million price tag. And while those sales boosted the office sector in the first quarter, new construction projects are also expected to goose the activity here. It all adds up to an office market that, while not booming, has certainly been solid in the first half of 2019. MORE: https://www.rejournals.com/booming-no-but-cleveland-s-office-market-remains-steady-20190621 "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
June 24, 20195 yr "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
June 25, 20195 yr More... "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
June 29, 20195 yr Downtown's office market gave back 245,000 square feet of space so far in 2019. That's the down side. The upside is that NYC-based Somera Road bought 1020 Bolivar Rd and has something planned for that building. I'd like to see them fill up the Ohio Bell building on East 9th at Lakeside someday..... MORE: http://www.ngkf.com/Uploads/FileManager/2Q19-Cleveland-Office-Market.pdf BTW, at the CRE conference on Thursday, a speaker noted that downtown has 3 million square feet of office space available. There are two problems here -- First, property owners in Class B and C buildings need to make some cosmetic improvements to their buildings if they hope to beef up occupancy. Too many buildings give awful first impressions in their lobbies and common areas. Second, Cleveland is way behind on the co-working front. Many national and international businesses would like to offer a toe-hold in this market with an eye toward possible expansion but the lack of co-working spaces makes this unnecessarily complicated for them. Rico Pietro noted that some businesses start in a market with a token workforce at a co-working space and then dramatically ramp up their presence. Cleveland is losing out on these opportunities because it lacks the co-working spaces. Edited June 29, 20195 yr by KJP "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
June 29, 20195 yr 58 minutes ago, KJP said: Second, Cleveland is way behind on the co-working front. Many national and international businesses would like to offer a toe-hold in this market with an eye toward possible expansion but the lack of co-working spaces makes this unnecessarily complicated for them. Rico Pietro noted that some businesses start in a market with a token workforce at a co-working space and then dramatically ramp up their presence. Cleveland is losing out on these opportunities because it lacks the co-working spaces. Did Rico mention if anything was being done to remedy the situation? It seems people are aware of the issue, so I wonder if anyone plans to do anything about it. WeWorks co-working is on every other block here in LA and I believe they just opened in Columbus.
June 29, 20195 yr His complaint is that Cleveland landlords aren't doing enough. He and others said that Cleveland is way behind other major cities and offering coworking opportunities. Edit: I just did a quick Google search on Cleveland coworking spaces and below is where they are. That's a pretty small number. Edit2: I did a similar search on Pittsburgh, Columbus, Detroit and Cincinnati and all showed a similar number of dots on their maps. Now, of course, dots on a map don't say how many units are available at each dot so it's not really telling the full story. Edited June 29, 20195 yr by KJP "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
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