It's only a 13-person firm and a mere 8,000 sf, but they've been in Beachwood since 1981. Why the move? Because it will mean a shorter commute for the CEO. Why else??

 

Towering view energizes Spero-Smith for the future

http://www.crainscleveland.com/article/20150328/FREE/150329844/towering-view-energizes-spero-smith-for-the-future

 

Crocker Park would have been shorter yet, the gift horse is coming to mind here.

 

He mentioned his meetings downtown, and this is indeed the type of business where a prestigious address and synergy with the financial community may be beneficial.

Crocker Park would have been shorter yet, the gift horse is coming to mind here.

 

He mentioned his meetings downtown, and this is indeed the type of business where a prestigious address and synergy with the financial community may be beneficial.

 

I'm not complaining. But I'm also not satisfied with a 13-person firm. 130 = good. 1,300 = great! :)

They plan to add more jobs over the next few years, and their payroll is pretty large for a firm of their size. It's a small firm, but it's certainly a good sign for the city. I helped a little bit on the incentive project to get them downtown, and the CEO seemed genuinely excited about working downtown and about being a part of Cleveland's revival. The decision wasn't just because of his commute.

 

I agree, though. Hopefully we can start getting more 1,300-employee firms as the momentum keeps picking up :)

I have it on good authority that Home Savings & Loan will move their NEO offices from Willoughby to an as yet unannounced location downtown sometime this year.

I have it on good authority that Home Savings & Loan will move their NEO offices from Willoughby to an as yet unannounced location downtown sometime this year.

 

I'm confused as to what will be relocated. Home Savings & Loan is headquartered in Youngstown. The Willoughby office is a branch/mortgage loan office of which they have many in Northeast and North Central Ohio....

https://www.homesavings.com/our-history.aspx

The Willoughby office is their regional HQ for NEO, where the mortgage sales reps and the preponderance of the commercial lending group are housed, as well as certain compliance people and the mortgage service group.

 

HSL owns the building in Willoughby (occupying the first floor and leasing floors 2-3), so I'm not certain they'd vacate, but rather move certain key personnel downtown. Don't know any specifics as my contacts didn't yet have them either.

Thanks. It certainly bears watching.

Interesting side comments MJM made in this article about Stark's nuCLEus project about the downtown office market and about tenants. Reporters often hear lots of off-the-record stuff that they can't share about those as possible development projects, but they can use an article about another project to share that information as unattributed background or to frame what external factors are influencing the project...

______________

 

Available top-grade office space - Class A - in the central business district is limited. Another office building planned for the Flats East Bank project, near the Cuyahoga River, was too far-flung from the center of downtown for Benesch. Other rumored office projects also were too geographically distant, or too nebulous, or aimed at larger companies. And landlords at existing buildings weren't going to wait around for a tenant on a four-year moving schedule.

 

"Some other companies and firms out there that are looking have a more aggressive timeline," Gimbel said, referring to a handful of tenants considering new digs. "For us, (new construction) is great, because there's not as much pressure to have this thing out of the ground, and to have occupancy."

 

Eisenberg said Benesch hopes to start prepping its new space in 2018, and to move the next year. Stark is promising a swifter timeline, with completion of the offices in 2017. But the developer hasn't started clearing the site, which includes an old parking garage and a small retail building, to prepare it for construction.

 

And the size of the office building still isn't set.

 

Stark might expand the project, now 200,000 square feet on eight floors above a parking garage, by another 100,000 square feet, based on interest from potential tenants. If that happens, a skywalk-like hotel designed to rest atop the office building and to bisect the apartment tower would climb higher into the air.

 

MORE:

http://www.cleveland.com/business/index.ssf/2015/04/nucleus_project_nabs_benesch_l.html#incart_river

I wonder who the other companies are. The latest Intesa article said they were negotiating with two potential anchor tenants, both large enough to secure financing to start construction. It sounds like FEB, nuCLEus, and Intesa are chasing the same tenants.

There are plenty of growing medium sized companies in the region. Particularly technology companies who are looking to attract young employees. I'm looking at you, Park Place Technologies in Mayfield... (among many others)

I would think that the proposed FEB office building location is real deterrent for prospective tenants. It sits just a few feet away from a very active rail line and is located at an isolated corner of downtown. This location looks as if it's better suited for a maintenance garage than for an office building.

I would think that the proposed FEB office building location is real deterrent for prospective tenants. It sits just a few feet away from a very active rail line and is located at an isolated corner of downtown. This location looks as if it's better suited for a maintenance garage than for an office building.

 

I'm surprised the Brotherhood of Locomotive Engineers didn't end up there!

Well, if anyone was fretting the loss of 60,000+ square feet of Benesch moving from 200 PS to nuCLEus, this helps make up for it.....

 

Fox Sports Ohio, SportsTime Ohio find new home

Networks will be in one facility for first time after selecting 200 Public Square as future headquarters

By KEVIN KLEPS

April 05, 2015 4:30 AM

 

Fox Sports paid a reported $230 million for SportsTime Ohio late in 2012, and the programming power with a vast collection of regional sports networks is shelling out almost $70 million annually in rights fees to the Cleveland Indians and Cavaliers.

 

Thus, when Francois McGillicuddy was hired as Fox Sports Ohio's general manager and senior vice president 10 days after the acquisition of SportsTime Ohio, one of his early missions was to get the two networks under one roof and get them to downtown Cleveland.

 

That will become a reality later this year, when Fox Sports Ohio and SportsTime Ohio move into the former BP Tower building at 200 Public Square. The networks will lease a combined 23,000 square feet of space on the second and 25th floors of the 45-story building that is the third-tallest in the city at 658 feet.

 

Fox Sports Ohio will be leaving its headquarters on South Hills Boulevard in Broadview Heights, and the network will be bringing its partner — SportsTime Ohio, which has been relying on WKYC-TV, Channel 3's Lakeside Avenue production space and talent for the last 10 years — along for the ride.

 

MORE:

http://www.crainscleveland.com/article/20150405/SUB1/304059974/fox-sports-ohio-sportstime-ohio-find-new-home

 

Well, if anyone was fretting the loss of 60,000+ square feet of Benesch moving from 200 PS to nuCLEus, this helps make up for it.....

 

Fox Sports Ohio, SportsTime Ohio find new home

Networks will be in one facility for first time after selecting 200 Public Square as future headquarters

By KEVIN KLEPS

April 05, 2015 4:30 AM

 

Fox Sports paid a reported $230 million for SportsTime Ohio late in 2012, and the programming power with a vast collection of regional sports networks is shelling out almost $70 million annually in rights fees to the Cleveland Indians and Cavaliers.

 

Thus, when Francois McGillicuddy was hired as Fox Sports Ohio's general manager and senior vice president 10 days after the acquisition of SportsTime Ohio, one of his early missions was to get the two networks under one roof and get them to downtown Cleveland.

 

That will become a reality later this year, when Fox Sports Ohio and SportsTime Ohio move into the former BP Tower building at 200 Public Square. The networks will lease a combined 23,000 square feet of space on the second and 25th floors of the 45-story building that is the third-tallest in the city at 658 feet.

 

Fox Sports Ohio will be leaving its headquarters on South Hills Boulevard in Broadview Heights, and the network will be bringing its partner — SportsTime Ohio, which has been relying on WKYC-TV, Channel 3's Lakeside Avenue production space and talent for the last 10 years — along for the ride.

 

MORE:

http://www.crainscleveland.com/article/20150405/SUB1/304059974/fox-sports-ohio-sportstime-ohio-find-new-home

 

 

Good news. It will be interesting to see if they can play up their visibility in this locale. Street presence and the BP building haven't exactly gone hand in hand.

 

I really wish that a few years ago city leaders would have incentivized consolidating all media within PHS. A media and entertainment district, if you will.

Great to see Fox Sports Ohio relocate from the 'burbs to the center of sports action downtown! Are Clear Channel radio stations (WTAM 1100, WMMS, etc.) the only major Cleveland media outlets left in the 'burbs? CBS Radio (92.3 the Fan, Q104, and others) and ESPN Radio Cleveland both are downtown, and all 4 major news stations are either downtown or nearby.

BTW in that article about Fox Sports/Sports Time Ohio was this: "Hurtuk, Colliers' managing director, said 200 Public Square's lobby will undergo a renovation later this year, and the building's operators are attempting to land a “white tablecloth restaurant.” 

 

Good to see the lobby project is still happening; that was announced some time ago... but hopefully the part about the restaurant will be that large empty Superior Ave facing street level space!

^Is that the old Frank and Paulies space?

^The article states they are taking space on the 25th Floor and 2nd floor.  Frank and Paulys was on the first floor of the atrium.

...that large empty Superior Ave facing street level space!

 

This was the Frank & Pauly's space, yes.

Fifth Third Center in downtown Cleveland sells to Hertz Investment Group of California

By Michelle Jarboe McFee, The Plain Dealer

on April 08, 2015 at 3:12 PM, updated April 08, 2015 at 5:32 PM

 

CLEVELAND, Ohio -- A California investor has purchased Cleveland's sixth-tallest building, the 27-story Fifth Third Center on Superior Avenue at East Sixth Street.

 

Hertz Investment Group of Santa Monica announced Wednesday that it has entered the Cleveland market with the acquisition of Fifth Third Center and an adjoining parking garage. Real estate documents related to the transaction weren't available, and Hertz would not discuss what it paid for the property.

 

"There are two questions I cannot answer, and that's the price and who sold it to me," Jim Ingram, Hertz's chief investment officer, said during a phone conversation.

 

MORE:

http://www.cleveland.com/business/index.ssf/2015/04/fifth_third_center_in_downtown.html

____________

 

And Crain's press-release reprint:

 

Hertz Investment Group LLC completes acquisition of Fifth Third Center office building

By RACHEL ABBEY MCCAFERTY

April 08, 2015 3:42 PM

 

The 508,397-square-foot Fifth Third Center building is the sixth tallest in Cleveland. Hertz also acquired the adjoining parking garage, which can hold 428 vehicles.

Hertz Investment Group LLC announced Wednesday, April 8, that it had completed the acquisition of the Fifth Third Center office building in downtown Cleveland.

 

The 27-story building at 600 Superior Ave. East is Hertz’s first in the Cleveland market, a news release said, though the Santa Monica, Calif.-based company already owns properties in Columbus and Cincinnati.

 

Crain’s wrote about the possibility of this deal in August. Dallas-based Tier REIT, which purchased the property in 2006, was reportedly looking to narrow its focus on fewer markets.

 

MORE:

http://www.crainscleveland.com/article/20150408/FREE/150409858/hertz-investment-group-llc-completes-acquisition-of-fifth-third

Michelle says the Fifth Third Center opened in 1991.

 

Rachel says 1992.

 

Which is it?  :wtf:

Great to see Fox Sports Ohio relocate from the 'burbs to the center of sports action downtown! Are Clear Channel radio stations (WTAM 1100, WMMS, etc.) the only major Cleveland media outlets left in the 'burbs? CBS Radio (92.3 the Fan, Q104, and others) and ESPN Radio Cleveland both are downtown, and all 4 major news stations are either downtown or nearby.

 

I agree. This is a great great thing. I believe that all media should be in the city. CBS Radio, ESPN Radio and NPR are downtown, Radio One is in midtown and all the major TV stations except Univision and WBNX are downtown. Clear Channel, Salem and WNWV are in Independence.

Great to see Fox Sports Ohio relocate from the 'burbs to the center of sports action downtown! Are Clear Channel radio stations (WTAM 1100, WMMS, etc.) the only major Cleveland media outlets left in the 'burbs? CBS Radio (92.3 the Fan, Q104, and others) and ESPN Radio Cleveland both are downtown, and all 4 major news stations are either downtown or nearby.

 

I agree. This is a great great thing. I believe that all media should be in the city. CBS Radio, ESPN Radio and NPR are downtown, Radio One is in midtown and all the major TV stations except Univision and WBNX are downtown. Clear Channel, Salem and WNWV are in Independence.

 

Mike Trivisanno has the internal clout to veto any such move, and if it came up he most certainly would.

 

Though as technology is quickly reaching the point where he could just as easily work out of his house without a lot of extra expense, the possibility is open there.

^That's what I suspected re: WTAM/Clear Channel. Triv is stuck in a time warp, and that move may not be possible until he retires.

 

Also office-related from a recent conversation with a friend: Engineering consulting firm AECOM bought out URS in mid-2014. The newly merged AECOM now has three office spaces in downtown Cleveland and would like to consolidate into one. However, timing their move with leases expiring at different times on the three offices is proving to be a challenge now. But they would be in the market for at least 60k SF.

^That's what I suspected re: WTAM/Clear Channel. Triv is stuck in a time warp, and that move may not be possible until he retires.

 

Or they can let him work from his house.  They could always put their offices in Tower City, the same building as the Horseshoe.  :)

 

Though I disagree about the time warp.  He comes closer than anyone else in Cleveland media to presenting the white suburban male over about 35's typical views.

^Yeah, you know, all those guys who are fun at parties.

Quick follow-up to last week's big downtown #CLE #CRE news: Fifth Third Center sold for $53.75M, records show.

 

http://www.cleveland.com/business/index.ssf/2015/04/fifth_third_center_fetches_537.html

Pentons new 'old' home.

 

http://www.crainscleveland.com/article/20150419/SUB1/304199979/pentons-new-home-will-be-the-same-as-its-old-digs?X-IgnoreUserAgent=1

Startup hub moving to new digs in Terminal Tower

May 13, 2015 UPDATED 4 DAYS AGO

By CHUCK SODER

 

The “StartMart” is becoming a reality.

 

On Saturday, May 16, the Flashstarts business accelerator plans to move into a far larger office on the second floor of Terminal Tower — an office that’s designed to serve as a central hub for startup companies in Cleveland.

 

Flashstarts is trying to recruit more tenants in an effort to create a densely packed space where ideas and advice flow freely between entrepreneurs and those around them.

 

A handful of startup companies has shown interest in moving into the 30,000-square-foot StartMart space, according to Grace Moenich, director of public relations for the accelerator, which provides cash and mentoring to startups that participate in a 12-week entrepreneurial boot camp.

 

MORE:

http://www.crainscleveland.com/article/20150513/FREE/150519930/startup-hub-moving-to-new-digs-in-terminal-tower

Core Values: Why American Companies are Moving Downtown: http://t.co/9VR6WKdlZB via @SmartGrowthUSA http://t.co/R75kIWQHVo

What's the story with this company? It started a decade ago, has several dozen employees, a few million dollars per year in gross revenue and now it's moving on up from its tiny digs in Playhouse Square into a larger space at Eaton Center. How large though?

 

http://planning.city.cleveland.oh.us/designreview/drcagenda/2015/06192015/index.php

 

City Planning Commission

Agenda for June 19, 2015

 

Ordinance No. 704-15(Ward 3/Councilmember Cimperman): Authorizing the Director of Economic Development to enter into forgivable loan contracts with One Source Technology LLC and/or Asurint, or their designee, to provide economic development assistance to partially finance the relocation and expansion of their office, tenant build-out of vacant office space, acquisition of office equipment, furniture, fixtures, and work stations, and soft costs for the property located at 1111 Superior Avenue, and other associated costs necessary to redevelop the property.

^ Here's what I know:

 

They are growing like a weed, and plan to at least double in size within the next 3-5 years. If I were to guess, I'd think they're looking for 25,000 - 30,000 sq. ft. Maybe even more.

Cool. Thanks!

I fell asleep to Bloomberg news the other night and had a dream that a fast-growing tech company announced it build a Public Square skyscraper on the Jacobs lot. And then I woke up. Damn you, mornings.....

 

http://www.marcusmillichap.com/research/researchreports/reports/2015/07/06/cleveland-office-research-report

 

Investors See Upside Potential in Cleveland Office Market

 

Demand for office space in the Cleveland metro is on the rise as hiring in the primary office-using sectors prompts companies to search for locations to house their growing workforces. In downtown Cleveland, the booming millennial population and large blocks of available Class A office space are encouraging technology companies, including Inforce Techologies, to relocate here from the suburbs. Additionally, national exposure stemming from the Republican National Convention next year is expected to increase tenant interest in downtown. The office development pipeline in the Cleveland market is constrained as builders mainly focus on multifamily assets. In order to meet the accelerating housing demand, builders are converting underutilized office buildings to multifamily or mixed-use assets. Traditional office projects largely consist of build-to-suit projects in suburban areas such as the new American Greetings headquarters in Westlake. Limited inventory growth will place upward pressure on average occupancy as companies continue to outgrow their current leases and relocate to larger spaces in anticipation of future growth.

 

Tightening office operations and higher yields compared with coastal markets are luring investors from across the country to the metro. Optimistic buyers are searching the market for well-located properties with high vacancy for value-add plays. Recent development and rapid population growth in the downtown area has been a particular draw as investors look to capitalize on the revitalization of the CBD. Newer properties with strong tenant rosters are also in high demand throughout the metro, garnering initial yields in the high-7 to low-8 percent range. Additionally, the strength of the local health care industry keeps demand for medical office buildings elevated. As a result, competitively priced medical assets will receive multiple offers and spend little time on the market with cap rates dipping into the mid-7 percent bracket.

 

2015 Annual Office Forecast

 

Employment: Employers are on track to boost total employment 1.6 percent this year with the creation of 16,500 jobs. In 2014, a mere 6,400 positions were added.

 

Construction: Developers will only complete 60,000 square feet of office space in 2015, though delivery totals are expected to accelerate next year. In 2014, 320,000 square feet was brought online. Nearly 1 million square feet is expected to debut next year.

 

Vacancy: Average vacancy will recede 20 basis points this year to 16.3 percent, on net absorption of 250,000 square feet. In 2014, vacancy remained firm at 16.5 percent.

 

Rents: The lack of a significant gain in Class B and C office demand will hamper rent growth this year. Average asking rents will inch up 0.5 percent to $17.15 per square foot. Last year, rents for marketed space rose 0.2 percent.

Downtown office spaces are fiery-hot commodities

Brokers say business locations are more coveted than ever

 

Avalon Document Services occupies part of the 10th floor of the Leader Building, 526 E. Superior Ave. — prime space for the firm, but also for apartments, as K&D Group converts the building to mixed use with rentals on upper floors. So the firm was asked to move, if only to a lower floor that will remain offices.

 

However, J.P. Midgley, the Buffalo-based CEO of Avalon, didn't go for it.

 

“Leader is a nice building and a nice spot,” Midgley said, but the document, image and scanning firm for legal and construction firms expects to be in place in October at IMG Center, 1360 E. Ninth St.

 

“IMG had nice first-floor space, and it's also not retail and apartments,” he said. “We have a lot of pickups and deliveries from law firms. It does not bode well to be in the same building as one that people are living in and going up and down elevators with their laundry.”

 

Avalon is part of a movement starting to sweep tenants from low-rent older buildings as they get converted to apartments.

 

http://www.crainscleveland.com/article/20150719/NEWS/307199989/downtown-office-spaces-are-fiery-hot-commodities

Generally seams like a good story. These firms are being pushed out of the conversion buildings, and staying downtown. If we keep reshuffling like this, soon empty space will be rare, and a new tower will be needed on the Public Square lot  :wink:

Good article. I never heard of the Broadvox Building before. I had to look it up -- it's one of the low-rise Erieview buildings off East 12th. It has an address of 75 Bethel Court.

I am really glad to hear that so many tenants displaced at Standard and Leader are staying downtown and eating up the vacancy at mid-century office buildings. Hopefully we see the same trend continue as 75 Public Square, Rockefeller, and other historic office towers transition to residential. As prices go up we may still lose some tenants to the suburbs--those that don't have to be downtown for business reasons--but this is a positive trend for sure.

Some updated info regarding the Artcraft Building which will be converted to office space.

 

http://www.freshwatercleveland.com/devnews/artcraft072715.aspx

Some updated info regarding the Artcraft Building which will be converted to office space.

 

http://www.freshwatercleveland.com/devnews/artcraft072715.aspx

 

This is great to hear--especially considering the huge trend with the office conversions in downtown.

And this is my favorite line from the article:

 

"While the Artcraft project will be Global X's first foray into the once-derided and now booming section of Superior Avenue, it will not be its last. The organization has amassed a number of properties in the Campus District, plans for which are still highly tentative."

 

Can't wait for more good news!

This Crain's piece is mostly about new suburban office developments, but a couple of interesting quotes regarding future office space and lease speculation that will surely apply to the downtown market.

 

http://www.crainscleveland.com/article/20150809/NEWS/308099980/finally-builders-plan-new-east-side-offices?X-IgnoreUserAgent=1

These guys need to be introduced to the Rapid...

 

Developer is doubling down with downtown move

PIRHL, which is relocating to the Warehouse District from Warrensville Heights, is greatly expanding its headquarters

August 16, 2015 UPDATED 2 DAYS AGO

By STAN BULLARD

 

PIRHL, a real estate developer, owner and contractor that specializes in low-income and affordable housing, plans to move to downtown Cleveland's Warehouse District as it upgrades its business home.

 

The 11-year-old firm, which has developed more than 2,500 units in 37 properties in seven states, has leased the third floor of the Worthington Building, 800 W. St. Clair Ave., according to David Uram, PIRHL managing member and co-owner with David Burg, who shares the same titles.

 

PIRHL will almost double the size of its office as it moves to 10,000 square feet from 5,400 square feet at its current office at Galaxy Corporate Center in Warrensville Heights.

 

MORE:

http://www.crainscleveland.com/article/20150816/NEWS/308169986/developer-is-doubling-down-with-downtown-move

Awesome news, another company moving downtown from the suburbs! Keep em coming!

Cleveland's next boom: Office space http://t.co/DPzxTkW6kV @NGKF

^For members who can not access Twitter at work

 

http://www.freshwatercleveland.com/devnews/officeboom081715.aspx

Thanks. I keep forgetting about that!

What's the story with this company? It started a decade ago, has several dozen employees, a few million dollars per year in gross revenue and now it's moving on up from its tiny digs in Playhouse Square into a larger space at Eaton Center. How large though?

 

http://planning.city.cleveland.oh.us/designreview/drcagenda/2015/06192015/index.php

 

City Planning Commission

Agenda for June 19, 2015

 

Ordinance No. 704-15(Ward 3/Councilmember Cimperman): Authorizing the Director of Economic Development to enter into forgivable loan contracts with One Source Technology LLC and/or Asurint, or their designee, to provide economic development assistance to partially finance the relocation and expansion of their office, tenant build-out of vacant office space, acquisition of office equipment, furniture, fixtures, and work stations, and soft costs for the property located at 1111 Superior Avenue, and other associated costs necessary to redevelop the property.

 

^ Here's what I know:

 

They are growing like a weed, and plan to at least double in size within the next 3-5 years. If I were to guess, I'd think they're looking for 25,000 - 30,000 sq. ft. Maybe even more.

 

Follow-up....

 

Asurint outgrows current space

August 16, 2015 UPDATED 2 DAYS AGO

By JAY MILLER

 

A growing Cleveland technology company that specializes in background checks is expanding and moving into downtown office space formerly occupied by Eaton Corp.

 

One Source Technology LLC, which operates as Asurint, will move at a date still to be determined to 1111 Superior Ave., the former Eaton Center. The company has outgrown its 12,000 square feet of offices space at 1501 Euclid Ave. in Playhouse Square.

 

The move will give the company growing room. It has 151 full-time employees and expects to grow to 224 employees by 2018.

 

MORE:

http://www.crainscleveland.com/article/20150816/NEWS/308169982/asurint-outgrows-current-space

Asurint should go for naming rights of the former Eaton Ctr.  I like names/logos on buildings/towers. It shows a commitment, that companies are invested for the future.

Asurint should go for naming rights of the former Eaton Ctr.  I like names/logos on buildings/towers. It shows a commitment, that companies are invested for the future.

 

I'm not a fan of it.  It can lead to odd situations like the third tallest building downtown having a big "Huntington" sign, but the Huntington Building is something completely different.

 

12,000 square feet is 120 x 100.  That's about 2% of the new building's total.  Not naming territory I suspect.