February 10, 201213 yr ^Midtown-to-Downtown Manhattan is surrounded by water on 3 sides; Downtown Cleveland on 2 sides---so we should take the comparison to Manhattan and all the glam! Downtown Brooklyn? Fugettaboutit! Sweetie. Have you been to downtown Brooklyn?
February 27, 201213 yr Interesting 2011 downtown office market overview and 2012 market forecast by Grubb & Ellis...... http://grubb-ellis.com/SitePages/GetFileFromDB.ashx?type=9&id=1282 EDIT: but I wonder if G&E had forecasted this... http://www.cleveland.com/business/index.ssf/2012/02/grubb_ellis_co_files_bankruptc.html "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
February 27, 201213 yr I think this also should be cross-posted here, not just in the general Cleveland business news thread...... Solon insurance broker to move downtown Britton Gallagher also will unify branding of its business units By MICHELLE PARK 4:30 am, February 27, 2012 If it's true what the company's CEO says — that Britton Gallagher has been a “sleeping giant in the suburbs” — it's probably safe to say that the company is awake now. The insurance brokerage in Solon is undertaking big changes this year, the most prominent of which is its planned move to downtown Cleveland over Memorial Day weekend. The relocation of the company's two Solon offices and about 60 employees to the 30th floor of One Cleveland Center will cost more than $2 million....... http://www.crainscleveland.com/apps/pbcs.dll/section?Category=TOC "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
March 12, 201213 yr I think this mostly just expended info of what what previously announced. Although GMAC mentioned. Its a bit hard to believe that nearly 1000 jobs and 11 floors would come from expected growth as opposed to moving work form other locations (other than the 200 expected from Seven Hills). I know when this was announced in December, the Winston Salem area was concerned since apparently there was a possibility of GMAC jobs moving from there to Cleveland (although I never saw that in any Cleveland publications). We shall see what happens. Great news for this area of downtown though. GMAC jobs could land downtown By STAN BULLARD 4:30 am, March 12, 2012 Add workers for GMAC Insurance, a better-known brand than that of its AmTrust Financial Services Inc. parent, to the list of prospective occupants of the 800 Superior Ave. building in downtown Cleveland. A total of six floors at the 23-story office building would be dedicated to auto insurer GMAC, while five floors are earmarked for AmTrust Financial, according to a construction budget that AmTrust filed with Cuyahoga County for a renovation of the building. An AmTrust affiliate bought the building last Aug. 29 for $7.5 million. http://www.crainscleveland.com/article/20120312/SUB1/303129997/1053/TOC&Profile=1053
April 2, 201213 yr The mention of apartments is intriguing. Bank files foreclosure on Tower at Erieview After nearly a decade of trying to make a go of the 40-story Tower at Erieview, an investor group led by co-owner Werner Minshall is in danger of losing the landmark property in downtown Cleveland to its lender. The office building and its 400-car underground parking garage are the subject of a foreclosure action filed March 23 by U.S. Bank in Cuyahoga County Common Pleas Court. The lawsuit against Mr. Minshall's Erieview Tower & Parking LLC looks to satisfy a $44 million mortgage issued by the bank. However, the attached, glass-topped Galleria, 1301 E. Ninth St., is exempt from the foreclosure action as it was financed separately and Mr. Minshall controls it through a different company. http://www.crainscleveland.com/article/20120402/SUB1/304029997
April 2, 201213 yr I thought Erieview was 60 percent occupied? Would it be roughly half apartments and half office? I've been up in Erieview tower recently and I just don't see it converting well to apartments. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
April 2, 201213 yr And some pretty unique downtown offices. They are at the former Hornblowers Barge & Grill near the USS Cod WWII submarine.... Cleveland software developer LeanDog grows, renovates floating headquarters By CHUCK SODER 4:30 am, April 2, 2012 Pretty soon LeanDog might have to change its name to BigDog. The software company best known for working out of a barge on Lake Erie more than doubled its sales and the size of its staff in 2011. That wasn't the plan, according to CEO Jon Stahl. LeanDog — which uses “agile” methods to develop software and teaches other companies to use agile techniques — was supposed to top out at 20 employees, Mr. Stahl said. “Now we're at 50 and probably headed to 100,” he said, adding that the company has 25 positions open. To accommodate that growth, the company is expanding its offices. READ MORE AT: http://www.crainscleveland.com/article/20120402/SUB1/304029982/1072/TOC&Profile=1072 "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
April 2, 201213 yr I thought Erieview was 60 percent occupied? Would it be roughly half apartments and half office? I've been up in Erieview tower recently and I just don't see it converting well to apartments. KJP, I often work in Erieview and those views of downtown and the lake are amazing. I always thought apartments would work great there, albeit, I'm no architect nor do I have any knowledge of how difficult a conversion would be. But the views would be a tremendous selling point imho. I love that building! The elevators however, well....you just thank God when you make it through alive.
April 2, 201213 yr I thought Erieview was 60 percent occupied? Would it be roughly half apartments and half office? I've been up in Erieview tower recently and I just don't see it converting well to apartments. KJP, I often work in Erieview and those views of downtown and the lake are amazing. I always thought apartments would work great there, albeit, I'm no architect nor do I have any knowledge of how difficult a conversion would be. But the views would be a tremendous selling point imho. I love that building! The elevators however, well....you just thank God when you make it through alive. If they can convert half an office tower at Philly's Liberty Place, to residential, I would think it could be done at Erieview! The views at Erieview would command top $$$.
April 2, 201213 yr The Crain's article indicates it is currently 76% leased. Thanks. How many square feet is Erieview? BTW, I don't care what else they do at Erieview -- just reopen Top of the Town!! "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
April 2, 201213 yr The Crain's article indicates it is currently 76% leased. Thanks. How many square feet is Erieview? BTW, I don't care what else they do at Erieview -- just reopen Top of the Town!! AMEN to that!
April 2, 201213 yr 76% leased and it couldn't avoid foreclosure? Is it Class A? Just because it has signed leases, that does not mean the leasees are paying. There seems to be more behind this.
April 2, 201213 yr ^Personally don't have any idea if any of the lessee's are in default. I do recall that they were very aggressive a few years back inticing firms to relocate to the building, and they were entering into some sweet heart deals. I know of at least two mid-size law firms that moved from the Terminal Tower to Erieview after supposedly obtaining very good deal on rents. Maybe this has now started to hurt them in some way. It is not cheap to continue to offer the amenities that such firms expect even if they were able to secure great rents. Again, who knows.
April 2, 201213 yr ^Personally don't have any idea if any of the lessee's are in default. I do recall that they were very aggressive a few years back inticing firms to relocate to the building, and they were entering into some sweet heart deals. I know of at least two mid-size law firms that moved from the Terminal Tower to Erieview after supposedly obtaining very good deal on rents. Maybe this has now started to hurt them in some way. It is not cheap to continue to offer the amenities that such firms expect even if they were able to secure great rents. Again, who knows. Neither do I, I was just putting it out there as a possibility. Great point, considering the article states they cannot compete with other buildings to bring in more tenants. I wonder if they don't have the money to (properly) market & maintain the building?
April 2, 201213 yr Also you have to remember that if a loan was approved several years ago at a specific LTV and the value of the property has since dropped (likely), that the loan may be underwater at over 100% LTV - making it near impossible for the Bank to extend the loan without some right-sizing to occur. If the Borrower is unable to provide any additional equity towards the project - then you have a stalemate. There are a lot of regulations, etc. that limits LTV and reporting that Bank's have to follow. It very well may be well leased, but at low rental rates, and at a too high leverage point.
May 3, 201213 yr Quicken Loans to hire 100 more mortgage workers in Cleveland, bringing total to 400 Published: Wednesday, May 02, 2012, 5:00 PM Teresa Dixon Murray, The Plain Dealer By Teresa Dixon Murray, The Plain Dealer Quicken Loans on Wednesday said it plans to hire 100 people for its Cleveland mortgage operations. Quicken Loans, the nation's largest online mortgage lender, said the new hires will bring the total working at the Cleveland Web Center to about 400 people. All of the new positions are in mortgage banking. The center, in the M.K. Ferguson Building at 1500 W. Third St., was recently expanded by 11,000 square feet to accommodate the growing workforce. Jeff Perry, a Quicken Loans vice president and head of the Cleveland office, said the expansion will help to strengthen downtown. http://www.cleveland.com/business/index.ssf/2012/05/quicken_loans_to_hire_100_more.html
May 7, 201213 yr BrandMuscle will move 150 to downtown 1100 Superior digs will offer room to add staff By CHUCK SODER 9:00 am, May 7, 2012 One of Northeast Ohio's fastest-growing software companies is moving to downtown Cleveland. BrandMuscle Inc. of Beachwood is in the process of finalizing a lease to take 40,000 square feet at 1100 Superior Ave., which is on the southwest corner of Superior and East 12th Street. The company today employs more than 150 people at its headquarters on Park East Drive in Beachwood. It plans to move all of them downtown before the end of 2012, said BrandMuscle CEO Phil Alexander. They'll have a lot more leg room at 1100 Superior, formerly known as the Diamond Building. The new space on the building's fourth and fifth floors is 5,000 square feet bigger than the company's current headquarters, and BrandMuscle will have the option to take another 10,000 square feet on the fourth floor. http://www.crainscleveland.com/article/20120507/SUB1/305079985
May 7, 201213 yr I was waiting on the Brandmuscle announcment. Great great news. Heres yet another possibility that we should be hearing more about in the near future: Staffing firm starts staffing up Alexander Mann could employ 300 here, state estimates By STAN BULLARD 4:30 am, May 7, 2012 Alexander Mann Solutions Corp., a global provider of personnel services, is recruiting for two jobs at what could grow to a 300-person Cleveland office that it is working to establish with the help of state and local officials. The state estimates the project could net as many as 300 jobs and a payroll of almost $13 million annually within three years of the opening of the office. The company could add a significant tenant to the city’s core or an outlying neighborhood business district. If the company reaches the state’s 300 full-time job estimate, it would require more than 50,000 square feet of office space. http://www.crainscleveland.com/article/20120507/SUB1/120509887
May 7, 201213 yr It appears that a number of the recent moves downtown from the suburbs by certain firms (not huge companies but certainly not small potatoes and many with potential for growth of course) is the result of a "perfect storm". Staffs with a different mindset (and usually younger) who prefer downtown over the 'burbs (as is happening nationwide), lots of available space in not so awful buildings (like Diamond...not new or stunning but adequate) with great lease rates, and the fact that lots of the suburb stock is starting to get old and moldy (60's and 70's stuff that was not great in the first place and now that is no longer new is starting to lose its appeal). It is getting to the point that the only real advantage to the 'burbs is the free parking. Take away any one of these factors and the moves might not be happening (especially the great lease deals). Another point is that suburban sprawl might actually be helping downtown. Employees are now located all over Northeast Ohio. Despite freeway expansion in the burbs, the highways and mass transportation in Cleveland is still geared towards downtown and it easier for a firm's "total" workforce to get downtown than a particular place in the suburbs. Too bad our major Fortune 500 companies (Eaton, Progressive, Parker) don't get it. They are still run by my father's generation or with younger executives who unfortunately have my father's mentality.
May 7, 201213 yr It appears that a number of the recent moves downtown from the suburbs by certain firms (not huge companies but certainly not small potatoes and many with potential for growth of course) is the result of a "perfect storm". Staffs with a different mindset (and usually younger) who prefer downtown over the 'burbs (as is happening nationwide), lots of available space in not so awful buildings (like Diamond...not new or stunning but adequate) with great lease rates, and the fact that lots of the suburb stock is starting to get old and moldy (60's and 70's stuff that was not great in the first place and now that is no longer new is starting to lose its appeal). It is getting to the point that the only real advantage to the 'burbs is the free parking. Take away any one of these factors and the moves might not be happening (especially the great lease deals). Another point is that suburban sprawl might actually be helping downtown. Employees are now located all over Northeast Ohio. Despite freeway expansion in the burbs, the highways and mass transportation in Cleveland is still geared towards downtown and it easier for a firm's "total" workforce to get downtown than a particular place in the suburbs. Too bad our major Fortune 500 companies (Eaton, Progressive, Parker) don't get it. They are still run by my father's generation or with younger executives who unfortunately have my father's mentality. As new developments come online "parking" will be a moot point as the majority of people at these firms or being recruited by these or like firms, will, most likely, live in Downtown or in an adjacent neighborhood/ward.
May 8, 201213 yr Another point is that suburban sprawl might actually be helping downtown. Employees are now located all over Northeast Ohio. Despite freeway expansion in the burbs, the highways and mass transportation in Cleveland is still geared towards downtown and it easier for a firm's "total" workforce to get downtown than a particular place in the suburbs. If a highway isn't being expanded with more lanes right now, it may not be for a very, very long time. Greater Ohio estimates that ODOT is losing the purchasing power of 2 cents per gallon of gas tax each year due to declining fuel consumption and rising construction/maintenance costs. Ironically, the biggest highway expansion project underway right now is probably the InnerBelt bridge and Central Interchange. I cannot think of another project that is expanding capacity in the suburbs right now. So if you're commuting in the suburbs and you see the traffic worsening (like on I-480 between I-77 and 271), better get used to it because there's no money to undertake any road widening projects. There might not even be any money to pave the existing, bumpy roads. So living closer to work, or working closer to home, or moving both closer together might be the best options right now!! Then again, over a larger sample, that only reduces gas tax revenues further and accelerates the change. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
May 8, 201213 yr Another point is that suburban sprawl might actually be helping downtown. Employees are now located all over Northeast Ohio. Despite freeway expansion in the burbs, the highways and mass transportation in Cleveland is still geared towards downtown and it easier for a firm's "total" workforce to get downtown than a particular place in the suburbs. If a highway isn't being expanded with more lanes right now, it may not be for a very, very long time. Greater Ohio estimates that ODOT is losing the purchasing power of 2 cents per gallon of gas tax each year due to declining fuel consumption and rising construction/maintenance costs. Ironically, the biggest highway expansion project underway right now is probably the InnerBelt bridge and Central Interchange. I cannot think of another project that is expanding capacity in the suburbs right now. So if you're commuting in the suburbs and you see the traffic worsening (like on I-480 between I-77 and 271), better get used to it because there's no money to undertake any road widening projects. There might not even be any money to pave the existing, bumpy roads. So living closer to work, or working closer to home, or moving both closer together might be the best options right now!! Then again, over a larger sample, that only reduces gas tax revenues further and accelerates the change. How about lengthening the rapid to go down Warrensville or Northfield to 480, where it would turn East/ South east to fit in the 480 median. Build a huge Park 'n' ride somewhere in that huge triangle of land between the 271, 422, 480 Interchange. Yea, that could work. LOL. Anyways, as downtown becomes more hip and has more of that big city feel like it had at one point in time, and lease rates remain comparitively low, I wonder how many companies will relocate to the CBD?
May 8, 201213 yr Another point is that suburban sprawl might actually be helping downtown. Employees are now located all over Northeast Ohio. Despite freeway expansion in the burbs, the highways and mass transportation in Cleveland is still geared towards downtown and it easier for a firm's "total" workforce to get downtown than a particular place in the suburbs. If a highway isn't being expanded with more lanes right now, it may not be for a very, very long time. Greater Ohio estimates that ODOT is losing the purchasing power of 2 cents per gallon of gas tax each year due to declining fuel consumption and rising construction/maintenance costs. Ironically, the biggest highway expansion project underway right now is probably the InnerBelt bridge and Central Interchange. I cannot think of another project that is expanding capacity in the suburbs right now. So if you're commuting in the suburbs and you see the traffic worsening (like on I-480 between I-77 and 271), better get used to it because there's no money to undertake any road widening projects. There might not even be any money to pave the existing, bumpy roads. So living closer to work, or working closer to home, or moving both closer together might be the best options right now!! Then again, over a larger sample, that only reduces gas tax revenues further and accelerates the change. Except for that new stupid interchange in Avon
May 8, 201213 yr My first reaction to the Diamond building is to think how bleak that Superior and 12th intersection is. But then I remember how good the new Perk Park looks. That project is probably very helpful for recruiting tenants to surrounding buildings.
May 8, 201213 yr ^ The East 12th streetscape improvement definitely improves that corridor, too. I have a few qualms about the design (the decorative fencing, seating, etc. seems very squat, particularly next to the building heights of that street), but definitely has made that stretch much more walkable, softer, etc.
May 8, 201213 yr How about lengthening the rapid to go down Warrensville or Northfield to 480, where it would turn East/ South east to fit in the 480 median. Build a huge Park 'n' ride somewhere in that huge triangle of land between the 271, 422, 480 Interchange. Yea, that could work. LOL. It's already planned, except it would be an express bus to a park-n-ride -- built next to a rail line that hosted the region's last commuter train. Anyway...... ^ The East 12th streetscape improvement definitely improves that corridor, too. I have a few qualms about the design (the decorative fencing, seating, etc. seems very squat, particularly next to the building heights of that street), but definitely has made that stretch much more walkable, softer, etc. Those things are definitely needed to freshen up that area of downtown. Every 10-20 years or so, a shopping center needs a facelift to stay fresh and competitive. Downtown office districts aren't much different. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
May 8, 201213 yr KJP, dont forget you still have the whole highway widening in Lake County that is still going on.
May 9, 201213 yr I'm not sure if these have been discussed, but smaller firms and companies continue to set up shop in Downtown Cleveland: http://www.us.am.joneslanglasalle.com/ResearchLevel1/Cleveland_Highlights_Q1_2012_Final_Draft_03_26.pdf • Cohen & Company, a regional accounting firm, signed a new ten year lease for 38,000 square feet at the US Bank Centre (Class A) in the Playhouse submarket. The lease represented an expansion for Cohen, which previously occupied 23,000 square feet in the building. The additional space will make room for the approximately 50 employees the company plans to hire within the next year. • Britton Gallagher, an insurance brokerage firm, signed a new lease for 20,000 square feet at One Cleveland Center (Class A) in the Financial submarket. The firm will consolidate two suburban offices and about 60 employees into the new space. Britton Gallagher plans to make the move over Memorial Day weekend. • Candlewood Partners, an independent middle market investment bank, signed a new ten-year lease for 7,000 square feet at the Leader Building (Class C) in the Public Square submarket. The firm, which was previously located in Chagrin Falls, completed its relocation in March. • Ferro Corporation’s former headquarters located at 1000 Lakeside Avenue (44,000 square feet, Class C) in the Financial Submarket, was purchased by Parkwood Corporation for $2.3 million ($53 per square foot). Parkwood, a private financial services company, plans to renovate the space and move its 51 employees into the building this summer.
May 9, 201213 yr 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
May 16, 201213 yr This was in an e-mail to existing tenants of the Superior and City Club buildings, both owned by EV Bishoff. This is the most new tenants I've seen since we moved into the City Club building last fall.... _____________________ May 16, 2012 To All Cleveland Clients: The E.V. Bishoff Company is happy to welcome into our City the following new Clients. Medica, LLC 815 Superior Ave, Suite 1916 Medica is a public accounting firm specializing in assisting corporations and law firms with analysis and resolution of complex financial business challenges. beLA, LLC 815 Superior Ave, Suite 625 beLA is an online fashion boutique founded in 2012. To “be LA” defines the boutique and its cutting edge LA styles. beLA’s clothing will include hand selected range of tops, bottoms, dresses outerwear accessories and more and will ensure that our customers are well dressed. PDS MICCO JV2 815 Superior Ave, Suite 1212 PDS MICCO JV2, can be more broadly classified into the Specialty Trade Contractors sector, defined as a company whose primary activity is performing specific activities involved in building construction or other activities that are similar for all types of construction. Liffey Enterprises 850 Euclid Ave, Suite 110 Black Dog Kitchen and Bar will bring an eclectic variety of regional foods, burgers, and tapas to the Cleveland area, using an array of Ohio local farmers. Black Dog Kitchen and Bar will be opened on the first floor of the City Club building soon! Please join us in welcoming your new neighbor! "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
May 16, 201213 yr 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 While I hate to take business away from anyone, we've lost a lot of business to North Carolina over the past 30 years. It would be nice to get something back from them -- especially 700 jobs. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
May 17, 201213 yr ^only thing better would be if we were taking them from Atlanta. I dont give a damn where we take from! Do other cities or their residents feel bad when a company leaves CLE/NE Ohio?? Why should we??. It's about time jobs and company's moved (back) to NE Ohio! The more the merrier! Keep'em coming!
May 17, 201213 yr ^only thing better would be if we were taking them from Atlanta. I dont give a damn where we take from! Do other cities or there residents feel bad when a company leaves CLE/NE Ohio?? Why should we??. It's about time jobs and company's moved (back) to NE Ohio! The more the merrier! Keep'em coming! Exactly!
May 20, 201213 yr ^only thing better would be if we were taking them from Atlanta. I dont give a damn where we take from! Do other cities or their residents feel bad when a company leaves CLE/NE Ohio?? Why should we??. It's about time jobs and company's moved (back) to NE Ohio! The more the merrier! Keep'em coming! Couldn't agree more
May 24, 201213 yr LeanDog story via WKSU Cleveland hopes to attract young talent with floating office space on the city's lakeshore This summer, when boaters are fishing, water skiing or just relaxing off Cleveland’s downtown lakeshore, one nearby boat will be a workplace filled with software designers. Software company LeanDog and a partner are renovating an old barge docked on the Lake Erie shore. http://www.wksu.org/news/story/31812
May 24, 201213 yr What would be really cool is if this floating office space could then motor to Lakewood or Detroit Shoreway or upriver to the flats to take you home at the end of the day.
May 25, 201213 yr As long as the chicks are smoking hot and in bikinis like that, who cares?? "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
May 25, 201213 yr What would be really cool is if this floating office space could then motor to Lakewood or Detroit Shoreway or upriver to the flats to take you home at the end of the day. IRC their idea was to have Jet Ski docks, so you would be able to do that. You'd just need your own Jet Ski.
May 28, 201213 yr 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....
May 28, 201213 yr ^ me neither besides Savannah Georgia, which seems badass Charleston, SC is pretty badass as well. Besides that, not much really. Atlanta has its spots, as does Charlotte. But if Applebees is your thing, you're set down south.
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