Apparently SW is OK with expanding into other buildings.

Wait why can't they strike a deal with Stark? I'm sure that would be a great shot in the arm to that project, reinforcing its legitimacy and hopefully getting it off the ground. Sure they wouldn't technically own the building but if they are OK with moving into other spaces, obtaining naming rights to the building would be a good consolation prize.

Downtown Cleveland's historic Caxton Building is 'bohemian' anchor for entrepreneurship (photos)

http://realestate.cleveland.com/realestate-news/2018/03/downtown_clevelands_historic_c.html

Tower at Erieview lands money manager

http://www.crainscleveland.com/article/20180304/news/153696/tower-erieview-lands-money-manager

Downtown Cleveland's historic Caxton Building is 'bohemian' anchor for entrepreneurship (photos)

http://realestate.cleveland.com/realestate-news/2018/03/downtown_clevelands_historic_c.html

 

I'm guessing that the ex-New Yorker Bill Bolton in that article is Frances Payne Bolton's grandson or grandnephew. If true, it's nice to see an old name come back to Cleveland.

Downtown Cleveland's historic Caxton Building is 'bohemian' anchor for entrepreneurship (photos)

http://realestate.cleveland.com/realestate-news/2018/03/downtown_clevelands_historic_c.html

 

I'm guessing that the ex-New Yorker Bill Bolton in that article is Frances Payne Bolton's grandson or grandnephew. If true, it's nice to see an old name come back to Cleveland.

 

Bill Bolton hails from a Northeast Ohio family of politicians and prominent Clevelanders.

Per the above Cleveland.com story

Where is Sherwin-Williams on its new headquarters building?

 

The latest I've heard:

https://www.urbanohio.com/forum/index.php/topic,4266.msg883676.html#msg883676

 

Staying optimistic about this here.  A S-W tower on the northwest quadrant would really complete Public Square.

 

Unfortunately, I just heard some bad news that SW has dropped consideration of building a new HQ tower. That's all I got. Sorry.

 

Not to beat a (possibly) dead horse... but is that really it KJP?  We went from years of speculation about a SW Tower and a Medical Mutual building, and now they are both dead.  Isn't SW out of space?

Spoke to a SW worker today and asked about Valspar and space requirements. He said they are being very strategic with their real estate. They are picking and choosing which buildings (Valspar and SW) are more strategic for them and their existing distribution centers. He said nothing will happen until around 2020 but they are very quickly running out of space in R&D, Landmark and Skylight. It was a very interesting few minute conversation.

Where is Sherwin-Williams on its new headquarters building?

 

The latest I've heard:

https://www.urbanohio.com/forum/index.php/topic,4266.msg883676.html#msg883676

 

Staying optimistic about this here.  A S-W tower on the northwest quadrant would really complete Public Square.

 

Unfortunately, I just heard some bad news that SW has dropped consideration of building a new HQ tower. That's all I got. Sorry.

 

Not to beat a (possibly) dead horse... but is that really it KJP?  We went from years of speculation about a SW Tower and a Medical Mutual building, and now they are both dead.  Isn't SW out of space?

Spoke to a SW worker today and asked about Valspar and space requirements. He said they are being very strategic with their real estate. They are picking and choosing which buildings (Valspar and SW) are more strategic for them and their existing distribution centers. He said nothing will happen until around 2020 but they are very quickly running out of space in R&D, Landmark and Skylight. It was a very interesting few minute conversation.

 

What about their offices off of Jenny Freeway?  Will they just keep adding more employees to that location?

Where is Sherwin-Williams on its new headquarters building?

 

The latest I've heard:

https://www.urbanohio.com/forum/index.php/topic,4266.msg883676.html#msg883676

 

Staying optimistic about this here.  A S-W tower on the northwest quadrant would really complete Public Square.

 

Unfortunately, I just heard some bad news that SW has dropped consideration of building a new HQ tower. That's all I got. Sorry.

 

Not to beat a (possibly) dead horse... but is that really it KJP?  We went from years of speculation about a SW Tower and a Medical Mutual building, and now they are both dead.  Isn't SW out of space?

Spoke to a SW worker today and asked about Valspar and space requirements. He said they are being very strategic with their real estate. They are picking and choosing which buildings (Valspar and SW) are more strategic for them and their existing distribution centers. He said nothing will happen until around 2020 but they are very quickly running out of space in R&D, Landmark and Skylight. It was a very interesting few minute conversation.

 

What about their offices off of Jenny Freeway?  Will they just keep adding more employees to that location?

 

Yes, SW is adding more staff to that location.  There will end up being close to 1,000 employees at Hinkley so that all of their Operations (Payroll, HR IT, HR / Financial Shared Services) are together. 

 

Is the Hinkley location a long term solution or just a short term fix till they decide their long term plans for HQ and other building requirements?

It’s looking like a long term play.  They won’t have any staff left in Skylight by the end of the year. 

 

They’re also not renewing any of their current tenant’s leases at Landmark.  This is being done to make room for staff moving over from Skylight.

So maybe within 2-4 years SW will still build a NEW HQ in Cleveland once they run out of space in their existing buildings?

So maybe within 2-4 years SW will still build a NEW HQ in Cleveland once they run out of space in their existing buildings?

 

It's time that the SW Headquarters Tower in downtown CLE topic is shelved until SW actually makes an announcement about it, whether it's in 2-4 days or 2-4 years.

 

 

It's time that the SW Headquarters Tower in downtown CLE topic is shelved until SW actually makes an announcement about it, whether it's in 2-4 days or 2-4 years.

 

 

That's not how UO operates, not when we all KNOW that SW needs a new HQ tower and we all KNOW exactly where it should be built! ;)

^Conjecture feeds us

Here's the 2017 Annual report provided by the DCA:

 

http://www.downtowncleveland.com/getmedia/2438fb42-8319-4447-b574-c817b08253bd/2017-DCA-Annual-Report

Nice to see downtown's employment numbers over 100,000 again.  I feel like the region's headed in the right direction- with the news of housing prices in Lakewood and the West Side along with the out-of-towners coming in.  I think it's only a matter of time until those improvements are reflected in population and job gains in the near future.

Nice to see downtown's employment numbers over 100,000 again.  I feel like the region's headed in the right direction- with the news of housing prices in Lakewood and the West Side along with the out-of-towners coming in.  I think it's only a matter of time until those improvements are reflected in population and job gains in the near future.

 

Unless retirees keep leaving, which they are. Otherwise it's a zero-sum game.

Good info in the report.  But I am confused by page 20.  2 columns are labeled as "% change 2010-2016."  Am I missing something?

Nice to see downtown's employment numbers over 100,000 again.  I feel like the region's headed in the right direction- with the news of housing prices in Lakewood and the West Side along with the out-of-towners coming in.  I think it's only a matter of time until those improvements are reflected in population and job gains in the near future.

 

Unless retirees keep leaving, which they are. Otherwise it's a zero-sum game.

 

That means the region is getting younger...that's a positive long term trend.

Yeah, retirees leaving isn't necessarily a bad thing. It will help keep property values attractive and make the mean age lower.

Good info in the report.  But I am confused by page 20.  2 columns are labeled as "% change 2010-2016."  Am I missing something?

 

The first one of them actually says 2000-2016. At first glance I made your mistake too.

Yeah, retirees leaving isn't necessarily a bad thing. It will help keep property values attractive and make the mean age lower.

 

Retirees, on the whole, are "profitable" from the government's point of view. Most of them are self-sufficient and all of them pay taxes.

Good info in the report.  But I am confused by page 20.  2 columns are labeled as "% change 2010-2016."  Am I missing something?

 

The first one of them actually says 2000-2016. At first glance I made your mistake too.

 

I guess I need new glasses.

wrong thread

@DowntownCLE

2m2 minutes ago

 

What transportation methods and users should cities' prioritize? Can cities meet the needs of residents, businesses, and tourists alike?

Join us for a conversation with local and national leaders on these issues in #dtCLE May 10th @TheCityClub!

http://ow.ly/v0Bt30j7vma

 

http://www.marcusmillichap.com/research/researchreports/reports/2018/03/07/cleveland-office-research-report

 

Cleveland Office Investment Forecast

Cleveland Metro Area, 2018 Outlook

 

Office Space Demand Outpacing Supply, Motivating Yield-Driven Investors

 

Strong pre-leasing diverts activity to existing assets, driving down vacancy. After a lackluster year of hiring, employment growth will increase in 2018, underpinning office demand in the northeast Ohio metro. Progressive Insurance and technology firm MCPc, Inc. announced expansion plans in Cleveland, creating hundreds of new jobs. The new Progressive campus will be located in the Highland Heights neighborhood and MCPc, Inc. will move to a larger space in Midtown between Cleveland State University and the Cleveland Clinic. Proximity to an educated workforce continues to lure office tenants to Midtown, turning the area into an up-and-coming neighborhood where the healthcare and tech sectors are flourishing. A steady pace of net absorption in Midtown has moved vacancy below the metro average and no new completions will further benefit tight market conditions this year. Metrowide, deliveries will pick up in 2018 and construction has been well received as the bulk of space is pre-leased. Strong office space demand will push vacancy down for the fourth consecutive year, falling below the previous low recorded in the first quarter of 2007.

 

Downtown population growth bolsters buyers’ appetite for office assets. Declining vacancy and a stable economy will buoy investor interest in the Cleveland office market this year. While the majority of investors are local buyers targeting properties of less than 100,000 square feet, several larger properties attract yield-seeking investors from coastal markets. The bulk of assets that change hands are Class B buildings in downtown Cleveland and along U.S. Route 422. Class B properties typically trade with average first-year returns in the low-8 to mid-9 percent band. Limited listings of Class A assets have pushed property values higher as a relatively subdued construction pipeline limits additional opportunities. Cap rates for these properties are roughly 100 basis points below the metro average.

^Progressive Insurance and technology firm MCPc, Inc. announced expansion plans in Cleveland, creating hundreds of new jobs. The new Progressive campus will be located in the Highland Heights neighborhood

 

Is this report saying that Progressive is building a new building/campus in Highland Heights? I havent heard anything about a new building. But if that is the case that is very dissapointing. They are just committed to burbs aren't they. Even though every report tells them new employees want to work in an urban setting. At least MCP gets it.

^Progressive Insurance and technology firm MCPc, Inc. announced expansion plans in Cleveland, creating hundreds of new jobs. The new Progressive campus will be located in the Highland Heights neighborhood

 

Is this report saying that Progressive is building a new building/campus in Highland Heights? I havent heard anything about a new building. But if that is the case that is very dissapointing. They are just committed to burbs aren't they. Even though every report tells them new employees want to work in an urban setting. At least MCP gets it.

 

It was announced maybe six or so months ago that Progressive was expanding and creating about 1,000 jobs. They're whole campus is in Mayfield/Highland Heights, so it wouldn't really make sense to expand in a place far away from their other properties (like downtown), unless they were going to move the entire operation in the future.

Remind me - is it Highland Hills the area where Cleveland gets half the property tax because of the Figge deal in the 80s?

Remind me - is it Highland Hills the area where Cleveland gets half the property tax because of the Figge deal in the 80s?

 

That is correct.  Highland Hills is in the Chagrin Highlands area formed from the remaining part of Warrensville Township.  This is different from Highland Heights which is in the Hillcrest area Bordering Mayfield Heights and Mayfield Village.

^Progressive Insurance and technology firm MCPc, Inc. announced expansion plans in Cleveland, creating hundreds of new jobs. The new Progressive campus will be located in the Highland Heights neighborhood

 

Is this report saying that Progressive is building a new building/campus in Highland Heights? I havent heard anything about a new building. But if that is the case that is very dissapointing. They are just committed to burbs aren't they. Even though every report tells them new employees want to work in an urban setting. At least MCP gets it.

 

It was announced maybe six or so months ago that Progressive was expanding and creating about 1,000 jobs. They're whole campus is in Mayfield/Highland Heights, so it wouldn't really make sense to expand in a place far away from their other properties (like downtown), unless they were going to move the entire operation in the future.

 

I knew about the announced jobs but wasn't aware of a new building. And it makes perfect sense to build elsewhere. SW has buildings elsewhere, MM does also, as does Key Bank. Most of these jobs are call/claim center jobs. They can be anywhere. Progressive has other campuses throughout the country employing upwards of 2000 people, this is not 1963 there is no need to be under the same roof anymore. I would love to see Progressive be as there name suggests and drop 1000 jobs if not downtown then somewhere like Detroit Shoreway. And make a difference. And I expect the city to fight for every opportunity they have to bring more jobs to the city. I care about the city of Cleveland, not Mayfield Hts, not the Highlands. I don't believe in regionalism, I believe in a strong and sustainable city center. That's what drives a region.

^Progressive Insurance and technology firm MCPc, Inc. announced expansion plans in Cleveland, creating hundreds of new jobs. The new Progressive campus will be located in the Highland Heights neighborhood

 

Is this report saying that Progressive is building a new building/campus in Highland Heights? I havent heard anything about a new building. But if that is the case that is very dissapointing. They are just committed to burbs aren't they. Even though every report tells them new employees want to work in an urban setting. At least MCP gets it.

 

It was announced maybe six or so months ago that Progressive was expanding and creating about 1,000 jobs. They're whole campus is in Mayfield/Highland Heights, so it wouldn't really make sense to expand in a place far away from their other properties (like downtown), unless they were going to move the entire operation in the future.

 

I knew about the announced jobs but wasn't aware of a new building. And it makes perfect sense to build elsewhere. SW has buildings elsewhere, MM does also, as does Key Bank. Most of these jobs are call/claim center jobs. They can be anywhere. Progressive has other campuses throughout the country employing upwards of 2000 people, this is not 1963 there is no need to be under the same roof anymore. I would love to see Progressive be as there name suggests and drop 1000 jobs if not downtown then somewhere like Detroit Shoreway. And make a difference. And I expect the city to fight for every opportunity they have to bring more jobs to the city. I care about the city of Cleveland, not Mayfield Hts, not the Highlands. I don't believe in regionalism, I believe in a strong and sustainable city center. That's what drives a region.

 

Well, Progressive didn't think it made sense to them, so they are adding another building to their I-271 Campuses.

 

You should care about all the cities in the region., at least in the core county. Not believing in regionalism is no longer an option, as you said it's not 1963 when the area was Cleveland and its first suburbs. Greater Cleveland is a region now full of (too many) different municipalities that bring different things to the table, be they bedroom communities or edge cities or cultural institutions and the CBD. Why can so many other regions in this country have a thriving core city and thriving communities that surround the core and we can't? Why does it have to be either or?

^Progressive Insurance and technology firm MCPc, Inc. announced expansion plans in Cleveland, creating hundreds of new jobs. The new Progressive campus will be located in the Highland Heights neighborhood

 

Is this report saying that Progressive is building a new building/campus in Highland Heights? I havent heard anything about a new building. But if that is the case that is very dissapointing. They are just committed to burbs aren't they. Even though every report tells them new employees want to work in an urban setting. At least MCP gets it.

 

It was announced maybe six or so months ago that Progressive was expanding and creating about 1,000 jobs. They're whole campus is in Mayfield/Highland Heights, so it wouldn't really make sense to expand in a place far away from their other properties (like downtown), unless they were going to move the entire operation in the future.

 

I knew about the announced jobs but wasn't aware of a new building. And it makes perfect sense to build elsewhere. SW has buildings elsewhere, MM does also, as does Key Bank. Most of these jobs are call/claim center jobs. They can be anywhere. Progressive has other campuses throughout the country employing upwards of 2000 people, this is not 1963 there is no need to be under the same roof anymore. I would love to see Progressive be as there name suggests and drop 1000 jobs if not downtown then somewhere like Detroit Shoreway. And make a difference. And I expect the city to fight for every opportunity they have to bring more jobs to the city. I care about the city of Cleveland, not Mayfield Hts, not the Highlands. I don't believe in regionalism, I believe in a strong and sustainable city center. That's what drives a region.

 

Well, Progressive didn't think it made sense to them, so they are adding another building to their I-271 Campuses.

 

You should care about all the cities in the region., at least in the core county. Not believing in regionalism is no longer an option, as you said it's not 1963 when the area was Cleveland and its first suburbs. Greater Cleveland is a region now full of (too many) different municipalities that bring different things to the table, be they bedroom communities or edge cities or cultural institutions and the CBD. Why can so many other regions in this country have a thriving core city and thriving communities that surround the core and we can't? Why does it have to be either or?

 

Because NEO (and other similar regions) doesn't have enough businesses, people and capital to have both..

^Progressive Insurance and technology firm MCPc, Inc. announced expansion plans in Cleveland, creating hundreds of new jobs. The new Progressive campus will be located in the Highland Heights neighborhood

 

Is this report saying that Progressive is building a new building/campus in Highland Heights? I havent heard anything about a new building. But if that is the case that is very dissapointing. They are just committed to burbs aren't they. Even though every report tells them new employees want to work in an urban setting. At least MCP gets it.

 

It was announced maybe six or so months ago that Progressive was expanding and creating about 1,000 jobs. They're whole campus is in Mayfield/Highland Heights, so it wouldn't really make sense to expand in a place far away from their other properties (like downtown), unless they were going to move the entire operation in the future.

 

I knew about the announced jobs but wasn't aware of a new building. And it makes perfect sense to build elsewhere. SW has buildings elsewhere, MM does also, as does Key Bank. Most of these jobs are call/claim center jobs. They can be anywhere. Progressive has other campuses throughout the country employing upwards of 2000 people, this is not 1963 there is no need to be under the same roof anymore. I would love to see Progressive be as there name suggests and drop 1000 jobs if not downtown then somewhere like Detroit Shoreway. And make a difference. And I expect the city to fight for every opportunity they have to bring more jobs to the city. I care about the city of Cleveland, not Mayfield Hts, not the Highlands. I don't believe in regionalism, I believe in a strong and sustainable city center. That's what drives a region.

 

Well, Progressive didn't think it made sense to them, so they are adding another building to their I-271 Campuses.

 

You should care about all the cities in the region., at least in the core county. Not believing in regionalism is no longer an option, as you said it's not 1963 when the area was Cleveland and its first suburbs. Greater Cleveland is a region now full of (too many) different municipalities that bring different things to the table, be they bedroom communities or edge cities or cultural institutions and the CBD. Why can so many other regions in this country have a thriving core city and thriving communities that surround the core and we can't? Why does it have to be either or?

 

Because NEO (and other similar regions) do not have enough businesses, people and capital to have both..

 

The solution is to grown the regionally economically through regionalism.

For which there is a different thread.  Does anyone have anything to say about Downtown Office Development News?

Columbus seems to have at least as much office space along I-270 as it does downtown.  While this arrangement has probably cost Columbus a couple towers in its skyline, it does not appear to have hindered urban development on the whole.  Cleveland's problem isn't the location of the office space, it's the location of the tax revenue borders.  Get rid of those borders and there's plenty to go around.

Columbus seems to have at least as much office space along I-270 as it does downtown.  While this arrangement has probably cost Columbus a couple towers in its skyline, it does not appear to have hindered urban development on the whole.  Cleveland's problem isn't the location of the office space, it's the location of the tax revenue borders.  Get rid of those borders and there's plenty to go around.

 

Exactly! These differing municipalities and their individual coffers is Greater Cleveland's issue. If Cleveland were set up like Columbus all that income tax from Progressive and American Greetings and Nestle as well as all of Crocker Park, and every other mall in the county could be used to rebuild the Fairfax neighborhood, East Cleveland and Hough, amongst other neighborhoods enriching our core and making it more attractive to private investment.

Because Columbus is growing and has regionalism. Er, because it has regionalism.

 

Can we move on now?

 

Here's a photo to get us back on track -- yep, another out-of-state car in the pic....

 

 

 

Because Columbus is growing and has regionalism. Er, because it has regionalism.

 

Can we move on now?

 

Here's a photo to get us back on track -- yep, another out-of-state car in the pic....

 

 

 

The dealer license frame is from a Buffalo dealership. 

 

 

Can anyone tell me what's the haps with the AT&T Building at 9th and (approx) Lakeside?

 

My firm is looking to relocate and have heard there are available floors there but have not been able to find as much online.

It's called 45 Erieview Plaza and was bought a little more than a year ago by a New York investor....

http://realestate.cleveland.com/realestate-news/2016/12/45_erieview_office_tower_in_do.html

i streetviewed the ownership -- its just funny how random investors up on one small floor of a very skinny office building control such large properties all over the place like that.

 

http://www.someraroadinc.com/contact/

 

i always thought that at&t building was a decent one for that era -- the style is more fitting of an outer loop office structure, but thats ok, it looks nice. hopefully they keep at&t happy and rope in more tenants.

BTW, the 1Q 2018 office market reports are out and they're showing a market for downtown office that's stronger than it has been since before 9/11, yet there's very little new inventory coming on the market. The CBD market includes Midtown and that has the CBD's largest addition to the office inventory -- Link 59. That's a little building and won't move the market needle at all.

 

Here's some good detail that gets into submarket breakdowns (BTW the CBD includes lots of zombie office space -- mostly empty office buildings no longer being marketed for offices and are awaiting conversion to other uses)....

 

Q1 2018 Cleveland Office Market Report Graphs

http://www.terrycoyne.com/uploads_pdf/Office%20Graphs%201Q18%20Final.pdf

 

And then there's the narrative.....

 

http://www.terrycoyne.com/uploads_pdf/1Q18-Cleveland-Office-Report.pdf

 

VACANCY DOWN AS CBD

PACES STEADY MARKET

 

The Greater Cleveland office market started 2018 on solid footing, as a

modest amount of net positive absorption during the first quarter resulted

in a decrease of the overall vacancy rate to 16.1%, a drop of 60 basis

points from the fourth quarter of 2017. This marked the inventory’s lowest

number since the second quarter of 2001, when the vacancy rate stood

at 16.0%. The market absorbed a total of 10,458 square feet in the first

quarter of 2018, with very high demand for office space in the Central

Business District offsetting the suburban submarkets’ negative

absorption. However, this positive absorption did not translate into higher

overall average asking rent, which dipped by $0.54/SF since fourth quarter

2017 to $17.67/SF. In fact, Class B asking rental rates decreased

in all of the submarkets, except for the Central Business District and the

West. However, Class A properties within the CBD and East submarkets

kept the overall market steady, as evidenced by rising asking rents and

positive absorption in those sectors. With the anticipated delivery of new

inventory in the East and CBD later this year, signs point to a normalized

and solid market as 2018 continues.

 

The CBD paced the market with 192,554 square feet of positive net

absorption during the first quarter. This generated an overall CBD

vacancy rate of 19.2%. When factoring in tracking methodology

modifications, this amounted to the equivalent of a 110-basis-point-drop

from the previous quarter. Class B asking rents in the CBD increased by

$0.17/SF from the previous quarter, coming in at $18.61/SF. This

increase combined with a Class A increase of $0.35/SF from fourthquarter

2017 to $21.99/SF, prompted the overall asking rent in the CBD

to increase $0.15/SF to $18.91/SF.

 

In the CBD, MidTown’s Link59, located at 5900 Euclid Avenue, made

news again. Growth Opportunity Partners, a nonprofit that is now exiting

its startup phase, signed a 5,600-square-foot lease that is due to

commence in the second quarter. The company will relocate from its

incubator space at 6701 Carnegie Avenue. Another long-awaited

MidTown project, the MidTown Tech Hive, opened in March, as the

15,000-square-foot cooperative flexible office initiative began operations

in the historic Frost Building at 6815 Euclid Avenue.

 

Electronic Merchant Systems, a prominent payment and financial

services firm, announced in the first quarter that it plans to move from the

South submarket to 48,433 square feet in the CBD’s 250 West Huron

building by the middle of the year. The company will join the Cleveland

Cavaliers, which leased 29,946 square feet in this building for its

corporate offices during the renovation of Quicken Loans Arena. Another

CBD move saw financial firm Boyd Watterson sign a 20,300-square-foot

lease at the Tower at Erieview, located at 1301 East Ninth Street.

 

The first quarter was quiet in terms of high-profile sales in the CBD and

across the entire market. However, the CBD did see a couple more

noteworthy leases, as the Cuyahoga Land Bank announced a 13,000-

square-foot lease at the Caxton Building, located at 812 Huron Road, in a

cross-town move from its current space at 323 Lakeside Avenue planned

for the second quarter. The Western Reserve Agency on Aging

announced in early 2018 a planned third-quarter move from its longtime

home at 925 Euclid Avenue to 57,000 square feet of office space at the

apartment-heavy mixed-use Reserve Square complex, located at 1701

East 12th Street. This noteworthy lease was signed as 2017 came to

a close.

 

Submarkets Underperform

 

Rates finally steadied in the East, as the first-quarter average asking

rental rate came in at $18.14/SF, down $0.31/SF from the previous

quarter. However, average asking rental rates for Class A properties in

the East increased by $0.34/SF to $23.20/SF, which eclipsed the CBD’s

Class A rate once again. Class B asking rental rates decreased by

$0.52/SF to $16.38/SF, which caused the overall rate to be tempered.

Overall, the East experienced a vacancy increase by 40 basis points to

12.3%, prompted by 88,097 square feet of negative absorption.

 

Pre-leasing continued at the Offices at Pinecrest, located at 100 and 200

Park Avenue in Orange Village, as law firm Amin, Turocy & Watson LLP

announced plans to move from the CBD’s Key Tower, 127 Public

Square, to the forthcoming development in the second quarter via a

6,200-square-foot lease. Minc LLC, another law firm, also committed to

Pinecrest with a 5,000-square-foot lease that will keep the firm in the

East submarket after it exits 28601 Chagrin Boulevard later in the year.

 

The East submarket saw a key office building transfer at the very end of

fourth-quarter 2017, as the prominent 462,000-square-foot Mayfield

Heights Rockwell Automation Building, located at 1 Allen Bradley Drive,

sold for $52.0 million, or $113/SF, to Mohr Capital.

 

The South submarket remained the tightest in the area, as its vacancy

rate tallied 10.9% this past quarter. The submarket’s average overall

asking rental rate came in at $16.09/SF for all classes. A notable sale

took place in the South at the end of fourth-quarter 2017, as Corporate

Plaza I & II, a pair of Independence office buildings that make up 226,498

square feet, transferred to a local investor group for $23.4 million, or

$103/SF. The properties are located at 6450 and 6480 Rockside Woods

Boulevard.

 

The Southwest continued to carry the highest vacancy rate of all the

submarkets, and that rate increased by 210 basis points to 21.2%. The

submarket’s average asking rent decreased by $0.57/SF to $15.50/SF.

 

The West submarket’s vacancy increased slightly in the first quarter to

15.0%, a 40-basis-point upturn from the fourth quarter. The West’s

overall asking rent decreased from the fourth quarter by $0.25/SF to

$14.41/SF. The Class A vacancy rate in the West is at an area-low 6.5%,

so the mid-March announcement of Equity Trust’s planned development

of two office buildings in Westlake should create new opportunities for

interested companies. The buildings will total approximately 100,000

square feet in a very visible part of Westlake where Clemens Road,

Crocker Road and I-90 converge.

 

The suburban submarkets all lost space in first-quarter 2018, collectively

tallying 182,096 square feet in negative net absorption. However, the

aforementioned 192,554 square feet of positive absorption by the CBD

helped to bring the overall market back into positive territory.

 

The market’s overall average asking rental rate over the last three years

is $17.81/SF for all classes. Interestingly, the overall average Class A

asking rental rate of $21.11/SF this past quarter was the highest it has

been since third-quarter 2012, when it came in at $21.75/SF.

Thanks KJP[/member] , this will help with my Jacobs lot project.

BTW, you may have seen my blog about how much zombie office space there is downtown....

 

http://neo-trans.blogspot.com/2017/09/zombies-say-start-building-downtown.html

K&D plans minor updates to Post Office Plaza (1500 W 3rd) as part of some tenant shuffling/expansion.

 

* S&P Data is moving floors into larger space 46,000 sqft

* BrightEdge is moving from Terminal Tower into 14,000 sqft (about double their former space)

* New, larger entrance on West 3rd and updated exterior lighting

 

Read more at:

 

http://www.crainscleveland.com/article/20180522/news/162586/post-office-plaza-redo-set

 

Post Office Plaza redo set

 

K&D Group of Willoughby is starting to put its stamp on the Post Office Plaza building, both inside and out.

 

The apartment and office building owner announced on Monday, May 21, that it has signed leases to allow S&P Data, a business information provider, to update its current office in the building, and for BrightEdge, a web services and search engine optimization firm, to move there from Terminal Tower and expand.

 

K&D also plans to add a larger, more prominent entrance at the building's West Third Street main entrance that incorporates a glass canopy and a new exterior lighting package.

 

Other improvements include a redesigned atrium with a café and gathering space. There also will be a new fifth floor amenities center for building tenants that will include a 5,000-square-foot conference room and the re-opening of an existing fitness center to tenants after an update.

<snip>

Electronic Merchant Systems moved from Independence....

 

@EMScorporate

In case you missed the news, we have moved our Corporate Headquarters! We are so excited and proud to officially call @DowntownCLE home! #dtCLE https://t.co/xh3x1OKUwc

Optima ventures continues it's exit from Cleveland. The AECOM building sold for $39 million to a NJ company.

 

http://www.crainscleveland.com/article/20180610/news/164531/nj-firm-set-acquire-aecom-centre-38m

 

N.J. firm set to acquire AECOM Centre for $38M

 

Rugby Realty, a Secaucus, N.J.-based real estate company with a track record for buying high-vacancy office buildings and turning them around, is preparing to purchase the 20-story AECOM Centre building in downtown Cleveland.

 

Sources familiar with the acquisition say a Rugby affiliate will pay about $38 million for the building at 1300 East Ninth St. The building is owned by Optima 1300 LLC, an affiliate of Miami Beach, Fla.-based Optima International that paid $46.5 million for it in 2010, according to Cuyahoga County land records.

 

Although Optima landed one of the largest downtown office deals of the last decade, wooing the Cleveland offices of big architecture/engineering firm AECOM to consolidate its operations from three offices to one at the tower, more tenants have been leaving than moving in the past few years.

 

AECOM is almost 36% vacant, with 209,132 square feet empty out of 588,320 square feet in the building.

 

Such high vacancy could make the building a candidate for at least partial conversion to apartments. However, the building dates from 1972 and is years from being eligible for state and federal tax credits that have been crucial to most such projects in downtown Cleveland.

 

The other reason insiders downplay an apartment conversion is that Rugby already has had representatives talking to prospective tenants about moving to the building — even before the company owns it.

Two small excepts are posted below....

 

CRESCO's Pietro: Drive for amenities luring companies to downtown Cleveland

June 14, 2018 | Dan Rafter

 

Midwest Real Estate News: I know this is a broad way to start this interview, but just how strong is the downtown Cleveland office market today?

 

Rico Pietro: It is incredibly healthy. It is as healthy as I’ve seen it in my 20 years in Cleveland. There is a new interest in downtown office space from the professional services sector. Recommitting to the CBD seems to be a common theme. We have always had tech companies, for instance, interested in downtown. But now there’s a new interest in downtown from accountants, lawyers and consultants. They are all trying to meet the desires of the Millennial employees who want to work in a CBD, to have the amenities that come with a more densely occupied area of commerce.

 

...and...

 

MREN: Will this demand lead to new office construction in downtown Cleveland?

 

Pietro: The Class-A office vacancy rate in downtown Cleveland is at record lows today. You do hear whispers from developers that there might be a new office tower coming to downtown. It will not be built on spec, though. It will require an anchor occupier. There are some institutions in Cleveland that are rumored to be looking for a downtown headquarters. It could be a government-led tower with a state, city or county agency in it. Or it could be one of the major businesses in town leading the charge for a new product coming to market.

 

MORE:

http://www.rejournals.com/cresco-s-pietro-drive-for-amenities-luring-companies-to-downtown-cleveland-20180614

Two small excepts are posted below....

 

CRESCO's Pietro: Drive for amenities luring companies to downtown Cleveland

June 14, 2018 | Dan Rafter

 

Midwest Real Estate News: I know this is a broad way to start this interview, but just how strong is the downtown Cleveland office market today?

 

Rico Pietro: It is incredibly healthy. It is as healthy as I’ve seen it in my 20 years in Cleveland. There is a new interest in downtown office space from the professional services sector. Recommitting to the CBD seems to be a common theme. We have always had tech companies, for instance, interested in downtown. But now there’s a new interest in downtown from accountants, lawyers and consultants. They are all trying to meet the desires of the Millennial employees who want to work in a CBD, to have the amenities that come with a more densely occupied area of commerce.

 

...and...

 

MREN: Will this demand lead to new office construction in downtown Cleveland?

 

Pietro: The Class-A office vacancy rate in downtown Cleveland is at record lows today. You do hear whispers from developers that there might be a new office tower coming to downtown. It will not be built on spec, though. It will require an anchor occupier. There are some institutions in Cleveland that are rumored to be looking for a downtown headquarters. It could be a government-led tower with a state, city or county agency in it. Or it could be one of the major businesses in town leading the charge for a new product coming to market.

 

MORE:

http://www.rejournals.com/cresco-s-pietro-drive-for-amenities-luring-companies-to-downtown-cleveland-20180614

 

OK, I'll comment first. I find it interesting that the very first potential anchor tenant Pietro mentions is a state agency. So I have to wonder if this is the who might be fishing for office space downtown. Most Cleveland-area offices of state agencies are in the Lausche state office building at 615 W. Superior Ave. A few aren't, like the Ohio Department of Transportation (a large office on Transportation Blvd./East 98th St. in Garfield Heights), Ohio Turnpike and Infrastructure Commission (large office on Prospect Street/I-80 in Berea), Ohio Environmental Protection Agency (a small office on State Route 82 in Twinsburg) and that's about it!

 

And what state agencies are actually growing? The only one I can think of is the Ohio Department of Commerce's Ohio Medical Marijuana Control Program!

 

Most federal agencies are already downtown. The only one I can think of right now that's not is the Occupational Safety & Health Administration, which is located on Oak Tree Boulevard in Independence.

 

A big get for a new office building would have been the Cleveland Police Department, but that one has sailed (and helped to further tighten the downtown private office market).

 

Of course, the biggest get of all would be a new Justice Center, built privately with lease-to-own provisions much like what Geis did in building the new Cuyahoga County administrative building. Otherwise, I have no idea what's out there in the public agency marketplace.