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

 

Yep, that's a lot of space to put on an already weak downtown office market. But knowing how big companies often want their own buildings, it wouldn't surprise me.

 

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?

 

Offices. As others noted in the article, Key Tower is a very prestigious office building. And as the state's tallest, I'm sure it will eventually fill up (from the top down! ;)) -- perhaps with tenants from older downtown office buildings that probably do have a better future as apartment buildings, hotels, or small-company incubators.

 

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.

 

True. I doubt Key's top execs have any preconceived ideas of what will happen. They put it out there they want something to happen to reduce their costs. What responses/proposals they get back will determine what option they will choose. So now we wait.

@KJP,

 

Good points. I guess I'm just worried about having another empty ass Ameritrust complex situation. Lol. That's a huge building. There's also the possibility that another large tenant currently in the city or outside of the city could want this building, but that's a big risk to take. I wouldn't want this large, beautiful building to be vacant.

Leaving for Beachwood

@KJP,

 

Good points. I guess I'm just worried about having another empty ass Ameritrust complex situation. Lol. That's a huge building. There's also the possibility that another large tenant currently in the city or outside of the city could want this building, but that's a big risk to take. I wouldn't want this large, beautiful building to be vacant.

 

If Key does leave Key Tower, I don't foresee an Ameritrust Tower situation developing. When Ameritrust merged with Key, Jacobs bought the Ameritrust Tower but didn't market it to individual tenants. Soon thereafter, Jacobs saw the consequences of the estate tax in his future and started looking to downsize the company's portfolio so it and many other properties were put on the market (including Key Tower). The County bought Ameritrust Tower and never marketed either to individual office tenants. So when Jacobs or the county was seeking to market the building, it was to sell the WHOLE building -- an all-or-nothing deal. If Key moves, then Key Tower's available spaces would be marketed piece by piece to potential tenants. It's a totally different situation from Ameritrust/Breuer Tower.

 

Leaving for Beachwood

 

Does anyone know where Key Corp's executives live?? Please tell me they live in the penthouse of the Pinnacle building!  :-P

 

Beth E. Mooney, Chairman and Chief Executive Officer - BRATENAHL

 

Christopher M. Gorman, President, Key Corporate Bank - SHAKER HEIGHTS

 

The rest I couldnt find

 

William L. Hartmann, Chief Risk Officer

William R. Koehler, President, Key Community Bank

Thomas C. Stevens, Vice Chair and Chief Administrative Officer

Jeffrey B. Weeden, Chief Financial Officer

How empty was the Sohio/BP/200 Public Square when BP left apx 12 years ago?

Just updated the list of where they live

How empty was the Sohio/BP/200 Public Square when BP left apx 12 years ago?

 

200 Public Square is about 1.2 million square feet. This article says that when BP moved out, it left a 300,000 square foot hole in the building....

http://nreionline.com/areareviews/real_estate_gambling_cleveland/

 

LTV Steel was also in the BP building, though its leased space is not ID'd, before it closed out....

http://www.nytimes.com/2005/09/28/realestate/28cleveland.html?pagewanted=all

 

And I'm sure the building wasn't 100 percent occupied when both major tenants were in there. So I would not be surprised if the building was half empty after BP and LTV left. Now it is mostly full, thanks to major tenants Cliffs and Huntington.

 

Just updated the list of where they live

 

Thanks. Well at least two of them can get to downtown pretty easily.

Hartmann - Gates Mills

Weeden - Novelty

Stevens - Shaker Heights

Here's some examples of buildings built over parking decks. Note how the parking was disguised in each....

 

Meridian II (NOW OPEN)

@15th and K street, Sacramento

22 Story Office Building, 300'

 

 

535 Mission Street (SUSPENDED)

27-story office tower, $100 million

Was to be built on speculation, but suspended in 2008

San Francisco

 

 

And below is my favorite design for disguising a parking deck -- build a five-story tall atrium in front it! I like this because the atrium, not a parking garage, could face Public Square. The rest of the building doesn't do much for me....

 

Bank of The West Tower (NOW OPEN)

aka: 500 Capitol Mall, Sacramento

25 story office building, 397'

467,942 sf office

27,124 sf retail

 

Key wont leave for Beachwood. Companies like banks prefer downtown locations and having a hugely visible presence. With that said, I dont see them leaving that building at all, as its not only the highest in the city and state, but one of the tallest in the country as a whole. A lot was also spent redoing the interior of the tower not long ago to better fit the companies needs. As far as downsizing and cutting personnel, I dont see that happening either, or at least not in large scale, and certainly not in this area. The cuts and downsizing mentioned before will most likely be in the areas that were just expanded into, such as New York, where all the HSBC branches were just added in. My understanding is theres a lot of over lap of branches in that area. Key is also making a big push to expand in NEO, adding a number of branches, and I would imagine would want to, again, keep the most prestigious address in the region. If any corporate jobs are cut,  I would think it would involve consolidating the corporate offices in Albany TO Cleveland.... which gets my imagination going. If they were to take less TOTAL space for corporate offices, and consolidated the Albany offices here, (and the Akron/East Ohio district offices, as theres talk of merging that district with Cleveland) they could theoretically need MORE space downtown than is offered in KeyTower  :wink:

Interesting. Thanks for a little inside info.

Key will not leave. Huntington just moved on the square to be right across from their competition for the Cleveland market.

Some background I just stumbled across....

 

http://www.cleveland.com/business/index.ssf/2012/07/keycorp_plans_big_cost-cutting.html

@KJP, the first time I've seen that article. Good catch. What stood out to me the most was

 

"Key also plans to save money by consolidating office space and renting some out. "We're going to do a lot of work around occupancy," Mooney said"

I got to thinking more on the consolidation of districts, and while it makes alot of sense to merge the offices in Akron up to Cleveland, Key just built a new building there for them. Id LOVE to see some more jobs from New York come downtown  :-D

 

All in all i think this whole moving from Key Tower is a bunch of bluster. Key wants to save money any way possible, even what would seam to be a marginal amount in rent.

 

Also, im not familiar with this, does anyone know what offices are housed in the Higbee building?

Unless the execs at Key and Wells Real Estate (the owner) are complete morons, Key isn't going to vacate the tallest tower between NY and Chi and Wells isn't going to let itself end up with a half-empty tower.  A deal will most certainly be struck between the parties.

Welcome, loveneo!

 

The almighty dollar is going to drive Key's decision. If Wells can't make money by giving Key a break, Key may leave. But only if Key can save more money by having its own building than by getting a break from Wells. The height of the Key Tower is irrelevant. The height of the pile of money Key will save by whatever decision it makes is relevant.

 

The little spot of sunshine on the dog's a## I can see should Key vacate the building is the removal of that god-awful logo which has desecrated the pinnacle of our tallest tower and blighted our skyline

 

 

Thank you, KJP, great forum here.  I agree it's all about the money.  But unless Wells foresees several major tenants needing huge blocks of space by 2017 (which I would  love to see, but sincerely doubt), I can't imagine them letting Key leave.  As for Key, while it's definitely about money, don't shortchange the value that companies place on perception, and having that God-awful logo (as Hts121 so eloquently put it!) on such a prestige building is worth alot (especially for a bank that, unfortunately for Cle and NEO, isn't growing and is slipping further and further behind other major regional banking companies).

The little spot of sunshine on the dog's a## I can see should Key vacate the building is the removal of that god-awful logo which has desecrated the pinnacle of our tallest tower and blighted our skyline

 

Be careful what you wish for:

 

^Not saying Bank of America is in the best place for acquisitions, but KeyCorp set a precedent for the logo/naming rights for whoever might move in  :|

I actually like the key. Im glad they didnt add the words "Key Bank" to the sign though

Key new HQ location = Acacia

Jokes!  Someone's got jokes!

Was at a meeting with top Cleveland real estate execs last night (CEO of DDR, CEO of Forest city, director of the local CBRE. offices) and the new Key HQ came up. All of them agreed the recent comments about a new HQ was posturing by KeyCorp.

Was at a meeting with top Cleveland real estate execs last night (CEO of DDR, CEO of Forest city, director of the local CBRE. offices) and the new Key HQ came up. All of them agreed the recent comments about a new HQ was posturing by KeyCorp.

 

But did you ask them about building more apartments downtown?!?! ;-)

No, didn't  get a chance. CEO of FCE had to leave early to catch a flight. I will be meeting with them several more times over the next few months, so I will try and get some answers. :-D

Gracias.

No, didn't  get a chance. CEO of FCE had to leave early to catch a flight. I will be meeting with them several more times over the next few months, so I will try and get some answers. :-D

The deadline for the county relocation proposals is September 14. I wonder if they'll dodge any apartment and office questions until the submitted plans go public (assuming they submitted anything).

 

Geis brothers to buy downtown Cleveland office building at 323 W. Lakeside out of receivership

 

CLEVELAND, Ohio -- Developers Fred and Greg Geis plan to buy a downtown Cleveland office building out of receivership, establishing a foothold in the city's central business district.

 

http://www.cleveland.com/business/index.ssf/2012/09/geis_brothers_to_buy_downtown.html#incart_river_default

 

 

These guys are on a spree... they're going from suburban development to downtown development. Wish other (more prominent developers would do the same -> errr FCE...Stark...  :whip: :whip:)

^Thanks for posting! This definitely makes the Geis lakefront proposal seem that much more serious.  These guys see a definite need to have office space themselves downtown now.  A great sign.

 

Also interesting from the end of that article:

 

And the brothers, who are looking at other downtown deals, expect to enter a bid this week as Cuyahoga County considers moving its offices, consolidating storage and selling several buildings.

^I would say Geis is trying to get the County to build in Midtown.  I don't think they have a chance getting them down by Burke. 

^Could be.  I didn't mean to connect the two pieces.  I think Geis is focused on the lakefront project regardless of what happens to the county.

Michelle J. McFee

‏@mjarboe

Apparently downtown #CLE's Lakeside Place office building (former L.N. Gross building) is on the local Superman tour.

http://noblemania.blogspot.com/2011/10/map-of-supermans-cleveland.html

 

https://twitter.com/mjarboe/status/245967244063043584

^Thanks for posting! This definitely makes the Geis lakefront proposal seem that much more serious.  These guys see a definite need to have office space themselves downtown now.  A great sign.

 

Also interesting from the end of that article:

 

And the brothers, who are looking at other downtown deals, expect to enter a bid this week as Cuyahoga County considers moving its offices, consolidating storage and selling several buildings.

 

I agree -- big news. One victory at a time.

Second quarter 2012 downtown market update (includes residential, office, other).....

http://www.downtowncleveland.com/media/71567/downtownmarketupdate_q2-2012.pdf

Resource management company to open first U.S. office in Cleveland, eventually hire 300 people

 

The company expects to eventually hire 300 people in the area of recruiters, support and administrative, data and technology. Cleveland will be one of five locations around the world joining Great Britain, Philippines, China and Poland where they employ over 500 people in Krakow.

 

The company was considering a number of other U.S. cities in North Carolina, Florida in Texas when at the urging of Team NEO, the business recruiting arm of Cleveland+, they tagged a quick visit to the end of their February U.S. trip.

 

“Halfway through their first morning they ran to me and said R.B. this is us, you just got to be here,” said Mann Founder and CEO Rosaleen Blair of the reaction of her team to Cleveland, “and it just continued.”

“We just got infected with this energy,” said AMS Managing Director Jerry Collier, “when we came here it was a no brainer, we had to be a part of this community.”

A decision made bigger by the fact it was made in February. “It was freezing,” he admitted, “but we got to see past some of that stuff there’s some real substance in this community. ”

 

 

Read more: http://www.newsnet5.com/dpp/news/local_news/cleveland_metro/resource-management-company-to-open-first-us-office-in-cleveland-eventually-hire-300-people#ixzz26wwB9cb1

 

Alexander Mann Solutions narrows permanent office search to downtown Cleveland, CEO says

 

CLEVELAND, Ohio -- Alexander Mann Solutions, a global recruitment-services business that chose Cleveland for its U.S. hub, will focus on downtown for its offices, the company's chief executive says.

 

Until this week, the company's leaders were torn between sites in downtown Cleveland and University Circle.

 

Since opening temporary offices at the Tower at Erieview seven weeks ago, Alexander Mann has hired 25 people here for its only U.S. operations center -- a facility that could employ hundreds of people within a few years.

 

Chief Executive Officer Rosaleen Blair said Wednesday that the company was "love-bombed" into choosing Cleveland over Raleigh, N.C. She said company executives were impressed with the city's enthusiasm and its plans downtown.

 

 

.................................

 

"Why Cleveland?" she asked a crowd of about 100 people at the Science Center. "Honestly, it's really, really simple. Cleveland absolutely embodies the values that we believe in. If we talk first about passion, I'm frankly lost for words. And anybody that knows me well will know that's very, very unusual. ... The enthusiasm from everyone we met was overwhelming."

 

http://www.cleveland.com/business/index.ssf/2012/09/alexander_mann_solutions_narro.html#incart_river_default

Moved both stories regarding Alexander Mann Solutions here, since they've narrowed their site selection to downtown.

 

But "love-bombed"?

I hope we love-bomb more companies to move downtown. Good news. Keep 'Em coming!

Osborne moves to grow...

http://mobile.cleveland.com/advcleve/pm_29207/contentdetail.htm?contentguid=mvdvZmmY

The Leader Building in downtown Cleveland will be offered for sale in November online auction

 

 

 

Published: Friday, October 12, 2012, 6:00 PM    Updated: Friday, October 12, 2012, 6:01 PM

By Michelle Jarboe McFee, The Plain Dealer

 

CLEVELAND, Ohio -- Another downtown Cleveland office building is hitting the auction block.

 

A listing for the Leader Building, a near-century-old structure at Superior Avenue and East Sixth Street, popped up this week on the Auction.com website. The bidding, starting at $2 million, will run from Nov. 13th to 15th.

 

The 16-story building, constructed in 1913 for the Cleveland Leader newspaper, sits on a block where several properties have changed hands.

 

http://www.cleveland.com/business/index.ssf/2012/10/the_leader_building_in_downtow.html

 

 

Depending on what the interior layouts are like, I'd say the Leader Building would make a great conversion to housing or maybe a hotel. But since it's 60 percent occupied (not bad for a Class C office building), I suspect it will stay offices for a while.

 

Personal story.... My grandfather was a VP at M.A. Hanna Mining Co. in the 1920s and 1930s when they had their corporate headquarters in the Leader Building. My father remembers visiting his father at the Leader Building many times. M.A. Hanna stayed at the Leader Building until 1964 when it was one of the first companies to move into Erieview Tower. M.A. Hanna is now part of PolyOne and headquartered in Avon Lake.

More companies trickling in:

 

ohio business machines relocates offices, 50 staffers to downtown digs

Thursday, October 18, 2012

 

A Cleveland company that has its roots downtown but moved to the suburbs 12 years ago has relocated its headquarters back to the place where it all started.

 

Ohio Business Machines, a company that offers the latest Sharp office technology to customers in Northern Ohio and Southeast Michigan, recently signed a lease on 8,000 square feet at 1111 Superior.

 

http://www.freshwatercleveland.com/devnews/ohiobusinessmachines101812.aspx

^Gonna take a lot more than that to fill all the space left empty by Eaton when they move out early next year.  But still good news.

Does anyone know about what percent of the building is occupied by Eaton?

Does anyone know about what percent of the building is occupied by Eaton?

 

for some reason, roughly 60% is in my mind. I know it's in past PD articles regarding Eaton's relocation... i'm too lazy to look them up right now though.

Does anyone know about what percent of the building is occupied by Eaton?

 

They occupy six full floors. I believe that is slightly less than a third. The law firm by comparison is leasing five full floors.

Graphic at the bottom of the article from 2010 has Eaton Center 79% occupied with Eaton as a tenant, but states it will drop to close to 30% once they leave.  So figure about 50% of the building for Eaton's space.

 

http://www.cleveland.com/business/index.ssf/2010/11/downtown_advocates_aim_to_rebr.html

Does anyone know about what percent of the building is occupied by Eaton?

 

They occupy six full floors. I believe that is slightly less than a third. The law firm by comparison is leasing five full floors.

 

Did I miss something?  It a large law firm relocating into the Eaton Building (or has done so already)?