April 19, 200718 yr I don't see where on the Grubb and Ellis reports that would give a breakdown of class A,B and C by submarket- I'd be very interested in knowing that. Also, Pburgh is data for Det. It's in the bottom table.
April 19, 200718 yr yeah- I was looking at that bottom table but that only shows A,B and C classes by total...not by CBD and other areas- maybe I'm still missing something here :drunk:
April 19, 200718 yr On the right side of the bottom table you see one column for CBD (Downtown) and another for the suburban market.
April 24, 200718 yr Tuesday, April 24, 2007 Henry J. Gomez Plain Dealer Reporter After five years of escalating vacancy rates, the market for downtown Cleveland office space rebounded nicely in 2006. Based on first-quarter activity, insiders predict this year will be even better. More at cleveland.com http://www.cleveland.com
April 24, 200718 yr Does anyone know the vacancy threshold for new construction? I think its 10% or less, but I could be wrong. Also do developers look at the overall vacancy rates or just class A space?
April 24, 200718 yr I don't think there's any specific number - remember, when Key Tower was being built the vacancy rate was something like 19-21%. I would imagine that if they're targeting class A tenants, they'd focus on class A numbers. clevelandskyscrapers.com Cleveland Skyscrapers on Instagram
April 24, 200718 yr I think they should demo 65-75 Erieview and expand the Avenue District. clevelandskyscrapers.com Cleveland Skyscrapers on Instagram
April 24, 200718 yr I think they should demo 65-75 Erieview and expand the Avenue District. I was thinking the same thing or renovate/rehab the space to fit in with the surrounding area. I would think buid it up to 15 Stories the views could be killer.
April 24, 200718 yr I think they should demo 65-75 Erieview and expand the Avenue District. Can a low-rise 1960s urban renewal office building be attractive as a live-work space?? "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
April 24, 200718 yr Its nice to see the PD have a decent article about downtown. Its amazing how everyone on this board probably knows stuff 1-2 months before the average Clevelander does. Also, does anyone have pictures of 65-75 Erieview? I can't think of what this building looks like.
April 24, 200718 yr You can see a smidge of it in the photo below - just left of the AT&T Lakeside building. It's a bland 4-5 story shoebox of a building: clevelandskyscrapers.com Cleveland Skyscrapers on Instagram
April 24, 200718 yr I think they should demo 65-75 Erieview and expand the Avenue District. Can a low-rise 1960s urban renewal office building be attractive as a live-work space?? Hell yes. Give me creative input of that sucka! I'd turn that stretch of land into the North Coast Riviera!!
May 5, 200718 yr Dollar Bank Galleria branch OK'd Plans call for grand 2-story entry Saturday, May 05, 2007Tom BreckenridgePlain Dealer Reporter Dollar Bank is bullish on the Galleria at Erieview. The Pittsburgh-based bank gained approval Friday to convert the southwest portion of the Galleria into a grand entry for a new, two-story bank branch. More at http://www.cleveland.com/news/plaindealer/index.ssf?/base/cuyahoga/1178354273234600.xml&coll=2
May 5, 200718 yr Excellent news. The Galleria won't have much vacancy when the bank project is completed, Bower said. Even better news! "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
May 5, 200718 yr Glad to hear it. The Galleria is a beautiful, 1st class indoor mall facility in the newest portion of our biz district closest to the lakefront... it deserves success.
May 5, 200718 yr Yeah this is great even though I'd rather see some sort of retail with street presence. In fact I think it would be great if sometime in the future (probably after more housing is built) the St Clair side of the Galleria could be extroverted and have retail fronting St Clair. Anyway somewhere on the Cleveland.com site there's a rendering of what they are planning on doing. I couldn't find a pic that was large enough though.
May 6, 200718 yr You know, for the longest time I've been looking for a word(s) to describe buildings with a street presence vs. those without one. Extroverted vs. introverted. Outstanding! Thank you! "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
May 6, 200718 yr you know, about the galleria, my Dad worked on the construction there. When I worked at the Koenig's there, he said he would not step foot in there because of the shotty construction. But, then again, it is still standing
May 6, 200718 yr How many restaurants have we all worked at where we said we would never eat there because of what we saw happening in the kitchen? Same deal, I suspect. "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
May 7, 200718 yr Now this is the type of company that hopefully would look at moving downtown. It's growing fast, it's a tech firm, and conceivably a good chunk of its employees are young and potential downtown dwellers as well. From Crain's: Brulant moves up Ad Age ranks By CHUCK SODER 6:00 am, May 7, 2007 Brulant Inc. of Beachwood grew faster than all but two of the nation’s top 50 interactive marketing agencies last year, according to a list published by Advertising Age, a sister publication of Crain’s Cleveland Business. More at: http://www.crainscleveland.com/article/20070507/FREE/70504026
May 7, 200718 yr I don't think its on brulant's immeadiate horizon. However, they are still munching up smaller companies, and adding people left and right. Give them another year or two until they completely fill up their space in Beachwood which was recently completely renovated by city architects. They hiring youngen's like its going out of style, so their employee base might be a better fit than most.
May 7, 200718 yr I don't think its on brulant's immeadiate horizon. However, they are still munching up smaller companies, and adding people left and right. Give them another year or two until they completely fill up their space in Beachwood which was recently completely renovated by city architects. They hiring youngen's like its going out of style, so their employee base might be a better fit than most. I've heard, by two people, there is high turnover, so that could be the cause of the all the hirings.
May 10, 200718 yr Didn't want to start a new thread over this, sorry if the stats at the bottom are hard to read: U.S. Office Market Sluggish During Q1, but Don't Be Fooled, According to Colliers International Rents continue to rise, with downtown lease rates reaching a record high, and absorption remaining in positive territory, according to Colliers' Q1 BOSTON, April 24 /PRNewswire/ -- The U.S. office market took a bit of a breather in the first quarter, with absorption falling to less than half of its Q4'06 level, according to a report by Colliers International, a leading global real estate services firm. However, the overall uptrend remains intact, with rents continuing to surge higher during the first three months of 2007. First quarter office absorption totaled 12.8 million square feet (msf), versus 25.9 msf during the fourth quarter of 2006 and 22.2 msf during the year-ago period. In contrast to this reduction in demand for office space, Q1 job creation met expectations with 152,000 jobs per month; in addition, "office using" employment remained relatively robust, increasing 1.9 percent for the year. The Q1 vacancy rate sat unchanged from Q4'06 at 12.55 percent -- but registered slightly down from a rate of 13.25 percent during the year-ago quarter. "Don't be fooled by a somewhat disappointing first quarter," cautioned Ross Moore, senior vice president and director of market & economic research at Colliers International. "While absorption was well below levels experienced over the past couple of years, nearly all markets continue to clock steady demand. Absorption is almost certain to bounce back -- if not during Q2, then in the latter half of 2007. In fact, despite this faltering absorption, rents remain on the rise, in line with an upward trend started early last year." Yet again, rents increased during Q1, with downtown lease rates rising particularly sharply. Downtown asking rents jumped 5.2 percent during Q1 to reach a record high of $43.22 per square foot (psf), led by Midtown Manhattan. Suburban rents increased 1.7 percent to $26.27 psf. This left downtown rents up 11.9 percent over the year, while suburban rents increased by 7.7 percent. A few more markets (10 compared with 6 at the end of Q4'06) anticipate less demand for space during the second quarter -- while the clear majority have forecasted steady if not rising demand in their market. As for new construction, completions totaled 15.3 msf during the first quarter, compared with 16.3 msf in Q4'06; and year-ago completions totaled 17.4 msf. Another 119.2 msf is currently under construction, most of which is anticipated to be completed in the next 18 months. 106.9 msf was under construction during Q4'06, as compared with 82.9 msf in the year-ago quarter. Downtown Q1'07 Under Construction: MARKET UNDER CONSTRUCTION (SF) Washington, DC 5,787,591 New York, NY - Downtown Manhattan 4,600,000 New York, NY - Midtown Manhattan 3,561,049 Chicago, IL 2,850,000 San Francisco, CA 2,544,000 Seattle, WA 1,781,474 Charlotte, NC 1,480,601 Atlanta, GA 1,415,199 Philadelphia, PA 1,253,233 Sacramento, CA 799,791 Miami, FL 709,000 West Palm Beach, FL 624,573 Detroit, MI 621,390 Denver, CO 553,400 Orlando, FL 427,799 Dallas/Ft. Worth, TX 400,000 Nashville, TN 338,000 Raleigh/Durham/Chapel Hill, NC 332,000 Columbus, OH 285,000 Ft. Lauderdale/Broward County, FL 263,463 Houston, TX 253,000 Portland, OR 250,843 Oakland, CA 215,000 Baltimore, MD 190,000 Columbia, SC 106,530 Tampa Bay, FL 87,786 Boise, ID 84,000 Greenville, SC 36,000 Las Vegas, NV 30,000 Pleasanton/Walnut Creek, CA 24,600 Bakersfield, CA 0 Boston, MA 0 Charleston, SC 0 Cincinnati, OH 0 Cleveland, OH 0 Fresno, CA 0 Hartford, CT 0 Honolulu, HI 0 Indianapolis, IN 0 Jacksonville, FL 0 Kansas City MO-KS 0 Little Rock, AR 0 Los Angeles, CA 0 Louisville, KY 0 Memphis, TN 0 Milwaukee, WI 0 Minneapolis/St. Paul, MN 0 New York, NY - Midtown South Manhattan 0 Phoenix, AZ 0 Reno, NV 0 San Diego County, CA 0 San Jose/Silicon Valley, CA 0 St. Louis, MO 0 Suburban Q1'07 Under Construction: MARKET UNDER CONSTRUCTION (SF) Phoenix, AZ 7,829,106 Washington, DC - N. Virginia 7,362,220 Dallas/Ft. Worth, TX 5,982,798 New Jersey - Northern 4,516,755 Seattle, WA 4,339,539 Atlanta, GA 3,885,745 Orange County, CA 3,761,000 San Diego County, CA 3,685,635 Houston, TX 2,783,871 West Palm Beach, FL 2,603,626 Miami, FL 2,526,745 Sacramento, CA 2,436,996 Los Angeles, CA 2,386,800 Orlando, FL 2,321,877 Washington, DC - Suburban, MD 2,320,000 Las Vegas, NV 2,032,176 Baltimore, MD 2,005,116 Raleigh/Durham/Chapel Hill, NC 2,000,243 New Jersey - Central 1,957,823 Ft. Lauderdale/Broward County, FL 1,843,446 Minneapolis/St. Paul, MN 1,780,968 Philadelphia, PA 1,697,551 Boston, MA 1,408,464 Denver, CO 1,392,000 Tampa Bay, FL 1,165,820 Kansas City MO-KS 1,095,000 Nashville, TN 1,069,151 Charlotte, NC 1,002,385 Columbus, OH 985,999 Chicago, IL 919,778 Cleveland, OH 651,790 Indianapolis, IN 641,783 Portland, OR 634,360 Cincinnati, OH 622,713 Boise, ID 597,000 Jacksonville, FL 587,461 New York - Fairfield County, CT 452,000 St. Louis, MO 395,000 Fresno, CA 328,156 Greenville, SC 318,000 Charleston, SC 250,000 Detroit, MI 237,599 Pleasanton/Walnut Creek, CA 164,174 Bakersfield, CA 163,416 Memphis, TN 75,280 Hartford, CT 37,000 Columbia, SC 0 Honolulu, HI 0 Little Rock, AR 0 Louisville, KY 0 Milwaukee, WI 0 New York - Westchester County, NY 0 Oakland, CA 0 Reno, NV 0 SF Peninsula - San Mateo County, CA 0 San Jose/Silicon Valley, CA 0 About Colliers Colliers International is a global affiliation of independently owned commercial real estate firms. The organization's 9,327 employees span the world in 241 offices in 54 countries. On a worldwide basis, Colliers manages 595,725,580 square feet, and has revenue of $US 1,442,478,223. For more information, visit http://www.colliers.com.
May 10, 200718 yr Industrial Real Estate Markets Falter in Q1, with Weakness Recorded in Many Cities, According to Colliers International BOSTON, April 30 /PRNewswire/ -- The industrial real estate market posted a shaky first quarter, with absorption considerably below anticipated levels, according to a report by Colliers International, the global real estate services firm. Even though demand for industrial space fell far short of expectations, rents managed a small increase during the first quarter. First quarter absorption was disappointing, with occupied space increasing by just 27.3 million square feet (msf), compared with 36.9 msf in Q4. Industrial absorption totaled 40.0 msf in the year-ago quarter. In addition, contrary to expectations, Q1 industrial construction completions also came in below expected levels, keeping the rise in vacancy to just four basis points. "Despite a slow start, it's too early to sound the alarm," remarked Ross Moore, senior vice president and director of market & economic research at Colliers International. "The underlying economy, with the exception of the housing sector, continues to register measured growth, which we believe will eventually help bolster the warehouse leasing market." Indeed, demand drivers reflected a slowing economy during the January through March period. Even though the ISM index remained above the critical "50" level -- at 50.9 for March -- advance Q1 GDP data showed the U.S. economy expanded at a sluggish 1.3 percent rate. That said, the global economy continues to post robust growth, suggesting the export sector will remain a bright spot. Q1 industrial vacancies measured 8.15 percent, versus 8.11 percent during Q4 and 8.51 percent during the year-ago quarter. Warehouse rents increased by 1.9 percent in Q1, after rising by only 0.4 percent during the fourth quarter of 2006. This left rents up 8.5 percent over the year. Just a handful of markets (13 percent) are forecasting demand to drop in the current quarter, with the vast majority anticipating leasing markets to either remain steady, or expand. First quarter new construction totaled 36.8 msf, versus 48.4 msf during Q4'06 and 41.4 msf of completions in the year-ago quarter. Industrial developments under construction increased 4.6 msf during the first quarter, reaching 140.0 msf. This compares to 135.4 msf during Q4'06 and 108.5 msf at the close of the year-ago quarter. Industrial Vacancies - Q1'07 / Q1'06 VACANCY VACANCY MARKET RATE MAR 31, RATE DEC 31, 2007 (%) 2006 (%) Honolulu, HI 1.9 2.3 Los Angeles, CA 3.0 2.8 Bakersfield, CA 3.4 3.5 Charleston, SC 3.8 6.5 Orange County, CA 4.0 4.0 Ft. Lauderdale/Broward County, FL 4.2 3.7 Columbia, SC 4.2 0.5 Las Vegas, NV 4.5 4.2 Miami, FL 4.6 4.4 Tampa, FL 4.7 4.6 Riverside/San Bernardino - Inland Empire, CA 4.9 5.4 Nashville, TN 5.0 5.3 Jacksonville, FL 5.1 6.2 West Palm Beach, FL 5.5 4.1 Oakland, CA 5.6 5.4 Orlando, FL 5.6 6.7 San Francisco Peninsula - San Mateo, CA 5.7 5.5 Boise, ID 5.8 5.7 Cincinnati, OH 6.0 5.9 Reno, NV 6.1 4.9 Fresno, CA 6.3 7.6 St. Louis, MO 6.3 6.5 Seattle, WA 6.4 6.4 New Jersey - Northern 6.4 5.9 Indianapolis, IN 6.4 6.3 Louisville, KY 6.6 6.7 Denver, CO 6.7 7.2 Houston, TX 7.1 6.6 New Jersey - Central 7.5 7.5 Milwaukee, WI 7.6 7.7 San Diego, CA 7.8 6.9 Portland, OR 7.8 10.4 Kansas City, MO 7.9 8.4 Philadelphia, PA 8.7 8.7 Cleveland, OH 8.7 8.9 Chicago, IL 8.9 9.0 Charlotte, NC 9.2 9.7 Washington, DC 9.5 9.4 Phoenix, AZ 9.7 9.0 San Jose/Silicon Valley, CA 9.7 10.0 Dallas-Ft. Worth, TX 9.9 10.0 Minneapolis, MN 9.9 10.3 Stockton/San Joaquin County, CA 10.2 9.1 Hartford, CT 10.2 8.6 Pleasanton/Walnut Creek, CA 10.7 8.6 Columbus, OH 10.9 10.5 Atlanta, GA 11.4 11.8 Sacramento, CA 11.8 11.4 Greenville, SC 12.6 12.8 Detroit, MI 13.3 13.5 Memphis, TN 14.3 14.1 Raleigh, NC 15.7 14.5 Baltimore, MD 16.9 15.2 Little Rock, AR 17.7 9.4 Boston, MA 22.5 21.8 About Colliers Colliers International is a global affiliation of independently owned commercial real estate firms. The organization's 9,327 employees span the world in 241 offices in 54 countries. On a worldwide basis, Colliers manages 595,725,580 square feet, and has revenue of $US 1,442,478,223. For more information, visit http://www.colliers.com/.
May 10, 200718 yr How can our vacancies be so low if we're bleeding so many industrial jobs? To go with that, How is Atlanta's so high, when its suposedly the job mecca?
May 10, 200718 yr To go with that, How is Atlanta's so high, when its suposedly the job mecca? I was talking with an economic development guru who says that the people's perceptions of where the jobs are is usually about 5 yrs behind reality. Atlanta was a great place for jobs in the 2001,2002, but now that's not so much the case. However, people will continue to move down there thinking that its a job mecca.
May 10, 200718 yr To go with that, How is Atlanta's so high, when its suposedly the job mecca? I was talking with an economic development guru who says that the people's perceptions of where the jobs are is usually about 5 yrs behind reality. Atlanta was a great place for jobs in the 2001,2002, but now that's not so much the case. However, people will continue to move down there thinking that its a job mecca. AMEN I've said that many times here! Same for Houston, Dallas, Miami....
May 10, 200718 yr We knew this but: __________________________________ Follow the leader? Stark to move HQ downtown Posted by Henry J. Gomez May 10, 2007 11:29AM Categories: Breaking News, Economic development Developer Bob Stark, who for a year has been pushing a vision for a revitalized Warehouse District, plans to move his firm's headquarters to downtown Cleveland, The Plain Dealer has learned. Stark Enterprises Inc. has purchased a five-story building at 1350 West Third St. with plans to renovate the former Captain Frank's restaurant. According to the Cuyahoga County auditor's office, Stark 1350 LLC paid $1.3 million for the property. More at http://blog.cleveland.com/business/2007/05/follow_the_leader_stark_to_mov.html
May 11, 200718 yr How can our vacancies be so low if we're bleeding so many industrial jobs? It depends on what they are measuring in their market analysis. Are they measuring owner occupied industrial real estate, single tenant leased space or just multi-tenant space. It seems like alot of the bleeding has come from large firms that probably own their space like Ford or LTV (from a few years back but a good example). That loss might not show up in these numbers. Also, as manufacturing continues to get leaner, jobs will be lost even though space is still leased. But that's just a guess on my part.
May 14, 200718 yr From Crain's: _______________________ N.Y. group to claim Eaton Ctr. for $71M Sovereign Group will pay far more than county assessment for Superior Avenue tower By STAN BULLARD 6:00 am, May 14, 2007 Sovereign Group, a real estate investment group based in New York, is preparing to acquire the 28-story Eaton Center in downtown Cleveland. Zevi Friedman, president of Rock Island Group of New York, a marketing firm representing Sovereign Group, said his client will pay $71 million for the office tower at 1111 Superior Ave. when it closes on the deal later this month. That price would top by a healthy margin the $57 million value Cuyahoga County assigns the building for tax purposes. According to Mr. Friedman, Sovereign Group acquired $1 billion of real estate last year. Its purchases included office buildings, apartments and residentially zoned land. Office properties in Sovereign’s portfolio include the 600,000-square-foot Green Hills Corporate Center in Harrisburg, Pa., which houses Penske Corp. and a Deloitte & Touche office, the PPL Corp. Center, a 300,000-square-foot building in Allentown, Pa. The company also has substantial interests in Brooklyn, N.Y., apartment complexes and in 27 industrial and office buildings on Long Island. Mr. Friedman would not comment on whether Sovereign owns other properties in Cleveland or why Eaton captured its interest. He described Sovereign as a family owned company whose chairman is Joshua Safrin. The company’s president is Avery Egert, who referred Crain’s to Mr. Friedman for information on the company and Eaton Center. Eaton Center’s current owner, KBS Realty Advisors of Newport Beach, Calif., is offering the building for sale because the investment fund that has owned it since 1997 has exceeded its holding period for the property. The 1983-vintage building is worth more than when KBS bought it. Eaton Center is now 95% leased, according to KBS’ web site, compared to 77% leased a decade ago. The 616,000-square-foot building sits on land leased from the Catholic Diocese of Cleveland a block east of the city’s financial district. Chuck Lindwall, KBS regional vice president in Boston, declined comment on the prospective transaction
June 6, 200718 yr Cleveland CFOs Forecast Increase in Third-Quarter Hiring CLEVELAND, June 6 PRNewswire — The hiring of full-time accounting and finance professionals in the Cleveland area is expected to increase in the third quarter of 2007, according to the most recent Robert Half Financial Hiring Index. Seven percent of chief financial officers (CFOs) surveyed plan to add staff during the quarter and 1 percent anticipate reductions in personnel. The net 6 percent increase is up five points from the area's second-quarter 2007 forecast and three points above the national average. The local results reflect a two-quarter rolling average based on the responses of 200 CFOs from a stratified random sample of companies in the Cleveland area with 20 or more employees; 1,400 CFOs were queried for the national data. (To view the national results, visit http://www.roberthalf.com/PressRoom.) The surveys were conducted by an independent research firm and developed by Robert Half International, the world's largest staffing services firm specializing in accounting, finance and information technology. Robert Half has been tracking financial hiring activity in the United States since 1992. "The demand for skilled accounting and finance professionals remains strong, and firms must find ways to differentiate themselves — from providing higher compensation and better benefits to enhancing the work environment — to attract top performers," said Max Messmer, chairman and CEO of Robert Half International.
June 26, 200717 yr Cleveland gets jobs in Fed restructuring Posted by Teresa Dixon Murray June 26, 2007 14:48PM Categories: Breaking News The Federal Reserve Bank of Cleveland is expected to add fewer than a dozen jobs in its check processing operations as part of a nationwide restructuring announced today. The Fed will cut about 1,740 positions out of 3,300 nationwide, but some of the cuts will occur through attrition. More at cleveland.com http://www.cleveland.com
June 26, 200717 yr selfish but the best part of this was.... Cleveland will gain some work from Cincinnati, Minneapolis, Chicago and Des Moines, Iowa, over the next several years.
June 27, 200717 yr selfish but the best part of this was.... Cleveland will gain some work from Cincinnati, Minneapolis, Chicago and Des Moines, Iowa, over the next several years. ... like they say, payback is a mother...
June 27, 200717 yr Federal Reserve to cut 140 jobs BY JON NEWBERRY | [email protected] Downtown Cincinnati will lose about 140 jobs next year when check-processing operations at the Cincinnati branch of the Federal Reserve Bank of Cleveland are shifted to the main office in Cleveland. The Federal Reserve System announced Tuesday that it's cutting 1,740 jobs across the country as it consolidates 22 check-processing locations into four regional centers in Atlanta, Cleveland, Dallas and Philadelphia. The central bank cited the continuing shift from the use of paper checks to electronic transfers and their strategy of encouraging greater use of electronic checks. More at http://news.enquirer.com/apps/pbcs.dll/article?AID=/20070627/BIZ01/706270330/1076/BIZ
June 27, 200717 yr There will also be some minor shifts in the local Fed offices in the months to come. A friend of mine will be moving from Independence to somewhere in Cleveland. Locaton TBD.
June 27, 200717 yr I also heard the entire State of Michigan's central government is moving downtown as well. :-D
June 27, 200717 yr I also heard the entire State of Michigan's central government is moving downtown as well. :-D given the effectiveness they are running the state from lansing, I doubt I'll see anything worse.
August 6, 200717 yr one important overlooked factor in the definition: Its all completely relative. Put one of our "so-so" class A buildings in Chicago=Class B Put one of our "so-so" Class A buildings in Chicago on the lake=Class A
August 6, 200717 yr Pope, I dont agree. I've been in buildings in Chicago that look great on the outside, but are rats nets on the inside. I think BP or Key hold up with their counterparts in other parts of the country quite well.
August 6, 200717 yr it was just an example stressing that Class is completely relative to the market.
August 16, 200717 yr Former McDonald Investment Center included in billion-dollar real estate deal Posted by Henry J. Gomez August 15, 2007 16:13PM Categories: Breaking News For the second time in less than a year, downtown Cleveland's reawakened office market has drawn the interest of a Dallas real estate investment company in the midst of a nationwide buying spree. As part of a proposed $1.4 billion deal, Behringer Harvard would buy 35 U.S. office properties, including the KeyBank Center -- formerly known as McDonald Investment Center -- at 800 Superior Ave. IPC US Real Estate Investment Trust of Toronto is the current owner. More at cleveland.com http://www.cleveland.com
August 17, 200717 yr Cleveland’s Central Business District (CBD) has had a strong start to the year. The CBD experienced positive absorption once again this quarter. The current activity in Cleveland is being driven by tenants’ need for growth and expansion, as well as new companies coming into the market. Low vacancy rates and a tightening Class “A” has translated into an encouraging market, attracting outside investors with fresh capital. Deals expected to take shape in the next few months should continue to make 2007 a great year with a lot of positive activity. Overall vacancy declined from 18.26% to 18.03% in the second quarter. For the third consecutive quarter, this is the lowest vacancy has been since mid-year 2003. Class “A” vacancy fell to 11.28% from 11.52% and Class “B” fell slightly from 26.32% to 26.12%. Absorption was positive despite the significant amount of space given back in 200 Public Square. Class “A” quarterly net absorption was 21,773 square feet and Class “B” quarterly net absorption was 15,250 square feet. Total absorption for the quarter was 37,023 square feet. Penton Media Building experienced the greatest absorption over the quarter with over 18,613 square feet. With leasing success continuing to be strong, KBS Realty Advisors decided it would be a great time to bring the building to market. The low vacancy should make the 20-story, 550,000 square foot Penton Media Building an attractive investment opportunity. Along with Penton Media Building, the CBD has continued to see a wealth of investment activity throughout the second quarter of 2007. The Eaton Center, a 616,000 square foot Class A office building also owned by KBS Realty Advisors, was sold this quarter to the Sovereign Group. The 1100 Superior Building is also on the market attracting interest from investors who are intrigued by its low vacancy. The 16-story, AT&T Building also sold this quarter as sale leaseback deal. With a few larger tenants in the market with sizeable requirements for quality space, new construction downtown is foreseeable and is receiving more attention Pope Edit: for Formatting. Also, Source?
August 17, 200717 yr my bad on the formatting or the lack thereof :?...source: : National Vacancy and Availability Index statistics published by CB Richard Ellis' Corporate Communications Department
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