i couldn't find anything on the sakhai bros or Sovereign Properties Ltd. of Manhattan, except they own or were looking at a similarly priced property in houston.

Here's an interesting read from earlier this fall. CB Richard Ellis staff discuss local retail, industrial, multi-family residential and office markets and prospects for new development.

 

http://www.rebusinessonline.com/article_archive/brokeroutlook/ohio.shtml

Redirecting a discussion here from:

 

http://www.urbanohio.com/forum2/index.php?topic=10517.msg145407#msg145407

 

also, this eliminates some more office space from the market, which could then spur some more commercial development. 

 

I was just thinking about that today. You've got a nine-story Park Building, and a four-story Southworth Building (at minimum it's four stories -- I think the building wraps around the Park and is taller on the Public Square side). I don't know the combined square footage, but it's gotta be at least 100,000. That's a decent amount taken out of the calculation for office vacancies.

 

What other office conversions to retail are pending? Likely?

^The whole Eli Mann set of buildings, right?  1001, 1015, etc.  At least until you saw 1001 on the market the other day.  That probably would be a comparable size of office space being taken off the market, if the conversion is carried out.

 

Were the Prospect Place apartments formerly office space?

The Southington does not wrap around to Public Square.  From west to east it goes; Park Building, May Company, then the Maron ownerships start.  But yeah, the Park building is a big chunk out of vacancies.  Kick ass.

 

Prospect Place was a print shop previously; it has been empty for something like 30 years.

 

I don't think the entire Park Building was being actively marketed, so this conversion may not have much of an affect on the vacancy rate. The Crain’s article said something about shuttered upper floors and it was my impression that only space being marketed is included in the occupancy calculations. That's why buildings like 668 Euclid and the Ameritrust Tower don't inflate the vacancy rates.

 

 

What other office conversions to retail are pending? Likely?

 

I meant to say "residential" not "retail" but could be to any uses that remove it from the office vacancy inventory.

 

Thanks for the correction w28 on the Southworth Building.

This is impressive...definitely on the high end of estimates that were given.

 

Fifth Third Center's sale is final: $64 million

 

3:22 p.m.

 

Dallas-based Behringer Harvard has completed its anticipated purchase of Fifth Third Center.

 

The real estate investment firm paid $63.75 million for the 27-store office tower at 600 Superior Ave. in Cleveland, which had been owned jointly by Ashley Capital LLC and Galbreath Co.

 

According to a filing with the U.S. Securities and Exchange Commission, Behringer Harvard does not plan to make significant repairs or improvements to the property, which "is suitable for its intended purpose and adequately covered by insurance." The building is anchored by the Northeast Ohio offices of Cincinnati-based Fifth Third Bank and is 83 percent leased. Other tenants include the law firms of McDonald Hopkins Co. and Buckley King.

 

real estate trading hands like that is generally a healthy sign.

a previous article said it might get $60 million.  It is a good sign that is got that and them some

I find it funny sometimes that structures such as that cost probably around $125 million to build.  Does this mean that it depriciated that much or am I not reading it properly? 

I just did a quick google search, and Wikipedia said it cost $70MM, but your point is still valid

well, considering the amount to which many Downtown properties were de-valued over the last 5 years, this wouldn't surprise me.

More good news:  CB Richard Ellis is reporting that Class A office space vacancies downtown have fallen below 10 percent for the first time since 2001.

 

See the rest of the 4th Quarter 2006 report (mostly positive news) here:

 

http://gkc2.cbrichardellis.com/GlobalMarketReports/us/cleveland4q06ofcdt.pdf

They've shrunk the window for new building construction from 12 to 36 months to 12 to 24 months since last quarter. That seems promising.

What's the difference between the vacancy rate, which is 11.96% for class A space, and the direct vacancy rate, which is 9.2%?

I believe the 11.96 percent figure is the overall vacancy for all Class A office space in Greater Cleveland. The 9.2 percent figure is just for the downtown area.

Ah, ok.  Thanks for the explanation.  :-)

More space to be used!!!

 

Software company moving to downtown Cleveland

 

5:10 p.m.

 

Axentis, a large software firm that develops corporate governance, risk and compliance programs, is moving its headquarters from Warrensville Heights to Skylight Office Tower in downtown Cleveland.

 

-- Henry J. Gomez, [email protected]

 

 

I wonder how much "free" water line work Warrensville Heights will get for this.

Not much, I suspect. I guess this business wasn't large enough for Warrensville Heights to force a revenue-sharing agreement?!?! It does seem a bit hypocritical.

 

But maybe its employees will hop on the Blue Line for their new digs at Tower City Center?

 

On another thought, I'm surprised more forumers haven't responded with joy at the report by CB Richard Ellis that downtown office vacancies for Class A space have dipped below 10 percent for the first time in more than five years.

 

That's great, positive news!

^I agree it's great/wonderful/awesome news, but I think most forumers check the thread and say "woohoo" amongst themselves. On this and other forums, threads like this will get a lot of views but not necessarily posted replies - so people are definitely interested, but maybe they're conserving bandwidth? ???

Here's my reverse attempt at conserving bandwidth...

 

^^^I think it is great news.  The projection of 12-24 months for new office space construction seems to be right in line with the plans of Wolstein and, maybe less so, Stark.  Realistically, those seem to be the likely next office space developments.

 

One thought regarding Class B space (and Class C too I suppose): I hope Howell's success thus far in converting the Park Building will provide an impetus for continued investment in similar conversions for older buildings around downtown.  The Class B vacancy rate -- 25% -- is still pretty high, which means that those buildings should be fairly cheap for potential developers. 

I agree that Class A vacancy rates are starting to look really good.  Yay!

 

Class B vacancy rate is high, but is it concentrated in a any nearly empty buildings that could easily be converted to residential?  I think I am hoping more for continued downtown office market recovery to help that number.

 

AUDIO: Cleveland office space in short supply

 

Downtown Cleveland's office market has become so tight that little is available for companies that want the best space, according to a review by Grubb & Ellis. Hear the real estate company's roundup of local markets in the latest Weekend Diary audio report.

 

http://www.cleveland.com/weblogs/business/index.ssf?/mtlogs/cleve_business/archives/2007_01.html#224599

The vacancy rate for Class A space is stellar.  That's more than low enough to prompt new construction (or renovation of some of that Class B space!).

The vacancy rate for Class A space is stellar.  That's more than low enough to prompt new construction (or renovation of some of that Class B space!).

 

how dare you speak positively!

:-P

Yeah!! Now fill the crap on Euclid.

Grubb & Ellis represents the former BP Building, now called 200 Public Square, and has a letter of intent from law firm of Baker & Hostetler to relocate to it. The large firm has outgrown its space in the National City Bank building on East Ninth Street.

 

Does this mean they will absolutely not build new?

Nosal said he thought the odds of B&H ending up at 200 Public Square were slightly better than 50/50 at the time I interviewed him (last week).

working in PS200, i cant help but wonder how much "fun" they'll have trying to get baker contiguous floors

More news on the Axentis move.

 

From Crain's:

 

Axentis comes downtown

 

By CHUCK SODER

 

3:11 pm, January 22, 2007

 

Axentis Inc. will have room to expand its staff at its new headquarters in Skylight Office Tower in downtown Cleveland.

 

The company, which produces governance, risk and compliance software, moved its Warrensville Heights office to Skylight Office Tower’s second floor during the weekend of Jan. 13, according to founder and chairman Steven Lindseth.

 

The 15,457-square-foot office will give Axentis room to add 15 to 17 new employees this year, Mr. Lindseth said. The company’s previous office had roughly 10,000 to 12,000 square feet, he said.

 

The company added 10 to 12 employees in 2006 and now has 55, he said. In addition, its customer base grew to 720,000 from roughly 500,000 in 2006.

 

Increased demand for software aimed at helping companies comply with government rules and regulations boosted sales, Mr. Lindseth added.

 

The city of Cleveland gave Axentis a $250,000 low-interest loan and a $5,000 grant as incentives to make the move.

 

The idea to move downtown was “an afterthought,” Mr. Lindseth said. The company began seriously considering it only after consulting the opinions of employees, who “overwhelmingly wanted to go downtown.”

 

City officials and employees touted the benefits of having a headquarters near restaurants, after-work activities and other companies.

 

“Now I look back and wonder why I would want to be anywhere else,” Mr. Lindseth said.

I have no stats to back this up, but I think the majority of employees in many industries would rather be in a downtown work environment.  Looks like employers are finally starting to take that into consideration when looking to open or relocate their business.  I personally would quit my current job if they decided to move to the suburbs.

Yeah!! Now fill the crap on Euclid.

 

Or filling in the blaring gap on PS would be nice too. :)

I have no stats to back this up, but I think the majority of employees in many industries would rather be in a downtown work environment.  Looks like employers are finally starting to take that into consideration when looking to open or relocate their business.  I personally would quit my current job if they decided to move to the suburbs.

 

having both worked on rockside and in the CBD, the quality of a workers life in the CBD is much better, IMO. The only people I hear preferring rockside is those who live down towards akron and the outer reaches with poor highway access to downtown, like solon. Then I tell them to move.

working in PS200....

 

What floor are you on and what view do you have?

working in PS200....

 

What floor are you on and what view do you have?

 

crappy camera phone from this summer.

 

 

God, I miss that building!  Such a beautiful views.  I could see damn near to the airport from my office.    sigh :|

^ I assume you mean CLE? This is facing north no?

^ I assume you mean CLE? This is facing north no?

 

Yeah I mean CLE., I was on the 30 floor and the 39 floor at one point.  My 30 floor office, faced west, my 39 floor office faced south.

 

On a clear day you could see planes takeoff/land.  The picture above is taken from the North (superior) side of the building.

Downtown Clev is visible from the OH Turnpike over Cuyahoga River Valley which I believe is about 25 miles away. I could only imagine the views from the tower. I have seen the views from the Terminal Tower but never from 200 PS.

The views from the top of Key Tower are even better.  :-D

PROJECT & CONSTRUCTION SERVICES MOVES DOWNTOWN, DOUBLES SPACE

Cleveland -

 

Media Contact: Robert Felber

 

Felber & Felber Marketing

 

FOR IMMEDIATE RELEASE                                        (330) 963-3664, [email protected]

 

 

PROJECT & CONSTRUCTION SERVICES MOVES DOWNTOWN, DOUBLES SPACE

 

 

 

Project & Construction Services, Inc. will occupy the 9th floor of 1360 E.9th Street (IMG Building) by the end of January, 2007

 

 

 

Cleveland, OH – January 22, 2007 – Project & Construction Services, Inc. (PCS) is doubling the size of their Cleveland, Ohio headquarters from 6,200 sq ft. to over 12,000 sq ft. “Our Company has been experiencing steady growth in the management of the design and construction phase of projects in the healthcare, K-12 and higher education and government markets. Our new headquarters will allow room for current and future engineering, and technical and support staffs to better serve our three offices,” states Robert S. Strickland, President, PCS. PCS employs over 40 people nationally with 20 in their Cleveland headquarters. The space the company is vacating in Midtown will be occupied by the building owner, Karpinski Engineering. The new address will be 1360 E. 9th Street, STE 910, Cleveland OH 44114-1737. Phone (216) 619-1700 and FAX (216) 619-1770 will remain the same.

 

PCS, headquartered in Cleveland, OH with branch offices in Phoenix, AZ and Wheeling, WV, has been providing professional construction services for nearly 20 years.  PCS has extensive experience providing construction advisory and management services from initial concept through final completion. The company is a winner of the Weatherhead 100 Award recognizing Northeast Ohio's fastest growing companies as well as a 2006 National Project Achievement Award from The Construction Management Association of America. PCS’s clients range from educational institutions and healthcare facilities to government/public sector, commercial and transportation clients. For more information visit www.pcscmservices.com. 

 

A partial list of local clients includes: HealthSpace Cleveland, City of Bedford, Greater Cleveland Regional Transit Authority, Ashtabula Area City School District, The Ohio Department of Administrative Services, Fairview Hospital, Rocky River Schools, Lake Hospital System, Forest City Enterprises and Applied Industrial Technologies.

 

-30-

Posted on:

Wednesday, January 24, 2007 02:01 AM

A 2006 hotel market report of Cleveland, Columbus and Cincinnati by Hotel & Leisure Advisors (Unfortunately, the first chart is unreadable)...

 

http://www.hotel-online.com/News/PR2006_1st/OhioHotelMarketArticle.html

"The views from the top of Key Tower are even better."

 

Okay, it's a little off-topic, but what the heck :-D

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All right, show's over - move along, nothing to see ;-)

 

 

I took black and white pictures from atop Key. I'll have to dig them and scan them someday!

 

Back on topic.... Think Cleveland's improving CBD vacancies numbers are raising eyebrows? In Buffalo, their Class A vacancy rate has fallen to 3.6 percent, and even Class B is a mere 13 percent! See...

 

http://www.buffalorising.com/city/archives/2007/01/downtowns_office_market_g_1.php

 

Yet, Buffalo residents are apparently as inferiority complexed as Clevelanders, as a couple of people crabbed on that forum that Buffalo has only 1/10th the industrial space as Cleveland and Toronto. Always fun to visit other cities' sites.

^Thanks for the links KJP. That Hotel post should go into the Cleveland hotels and conventions thread thats around here somewhere. If you want to see the table w/IE7 click the down arrow next to 100% and click 125% or higher.

I took black and white pictures from atop Key. I'll have to dig them and scan them someday!

 

Back on topic.... Think Cleveland's improving CBD vacancies numbers are raising eyebrows? In Buffalo, their Class A vacancy rate has fallen to 3.6 percent, and even Class B is a mere 13 percent! See...

 

http://www.buffalorising.com/city/archives/2007/01/downtowns_office_market_g_1.php

 

Yet, Buffalo residents are apparently as inferiority complexed as Clevelanders, as a couple of people crabbed on that forum that Buffalo has only 1/10th the industrial space as Cleveland and Toronto. Always fun to visit other cities' sites.

 

no wonder buffalo has a proposal for a 600ft-er.....

Friday, January 26, 2007 

 

Another downtown tower is on the block

 

 

10:12 a.m.

 

For the sixth time in two years, a downtown Cleveland office tower is being prepared for sale.

 

Eaton Center, the sleek 28-story building at 1111 Superior Ave., should officially hit the market next week, said Gerry Mason of New York's Granite Partners LLC. The real estate investment banking firm is working on behalf of owner KBS Realty Advisors.

 

More at cleveland.com http://www.cleveland.com