Author Topic: Cleveland: Downtown Office Development News  (Read 48603 times)

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Offline KJP

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Re: Cleveland: Downtown Office Development News
« Reply #2130 on: August 02, 2018, 11:24:43 AM »
Pure speculation on my part but my guess is both the large law firms will be out that building soon. A lot of large firms recently upgraded their space and I would expect Weston Hurd/Walter Haverfield to continue that trend.

Redirected from the Erieview thread since this is reckless speculation/wishful thinking...

I assume the Jacobs Group is aggressively marketing its Public Square lot. If so, sign Weston Hurd, TransDigm, and Walter Haverfield as the anchor tenants for a new tower on that lot.

Oh, and I hope Cuyahoga County will soon issue an RFP for building a new Justice Center with a lease/purchase option. If they do, I would think Weston would have the leg up with its Superblock on Superior. A parking deck wrapped with housing in the north half, facing St. Clair would be nice.

....End reckless speculation/wishful thinking
"Treat this (November 2018) election as if it's the last election in which you can fully exercise your democratic rights. Because it just might be." -- Margy Waller.

Offline jmc8651

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Re: Cleveland: Downtown Office Development News
« Reply #2131 on: August 02, 2018, 01:43:55 PM »
^ I guess a lot of this depends upon the fate of Nucleus. If Benesch leaves 200 PS then there is a huge gap to filled, I think they have 3 full floors.

Offline KJP

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Re: Cleveland: Downtown Office Development News
« Reply #2132 on: August 02, 2018, 02:34:20 PM »
^ I guess a lot of this depends upon the fate of Nucleus. If Benesch leaves 200 PS then there is a huge gap to filled, I think they have 3 full floors.


By that time other companies will hopefully have grown enough to fill most of the CBD voids -- which aren't many, at least in Class A.

I'm the guy that desperately googles "Cleveland office" at least once a week to see if there's any progress in office employment, inventory development, etc. So if I sound desperate/hopeless, I am. ;)
"Treat this (November 2018) election as if it's the last election in which you can fully exercise your democratic rights. Because it just might be." -- Margy Waller.

Online Htsguy

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Re: Cleveland: Downtown Office Development News
« Reply #2133 on: August 04, 2018, 02:24:47 PM »
Pure speculation on my part but my guess is both the large law firms will be out that building soon. A lot of large firms recently upgraded their space and I would expect Weston Hurd/Walter Haverfield to continue that trend.

Redirected from the Erieview thread since this is reckless speculation/wishful thinking...

I assume the Jacobs Group is aggressively marketing its Public Square lot. If so, sign Weston Hurd, TransDigm, and Walter Haverfield as the anchor tenants for a new tower on that lot.

Oh, and I hope Cuyahoga County will soon issue an RFP for building a new Justice Center with a lease/purchase option. If they do, I would think Weston would have the leg up with its Superblock on Superior. A parking deck wrapped with housing in the north half, facing St. Clair would be nice.

....End reckless speculation/wishful thinking

Unfortunately, I recall GOTTAPLAN stating in another thread recently that he was speaking to somebody with the city and the Weston superblock is all but dead.  I hope that is not the case but it seems to ring true because we have not heard a peep about it for almost a year, either positive or negative.  Those parking lots are like cockroaches.  They are going to out live us all.

Offline KJP

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Re: Cleveland: Downtown Office Development News
« Reply #2134 on: August 04, 2018, 03:39:21 PM »
I don't doubt it. Sounds like Weston is more interested in Ohio City right now (EDIT: and renovating the rest of the Marion Building on West 3rd when the last county offices move from it to the CPD HQ after the CPD moves to the old Plain Dealer HQ...whew!).

Regarding the future of the Superblock, I commented on it at the Justice Center thread:
https://www.urbanohio.com/forum/index.php/topic,30352.msg929727.html#msg929727
« Last Edit: August 04, 2018, 03:55:00 PM by KJP »
"Treat this (November 2018) election as if it's the last election in which you can fully exercise your democratic rights. Because it just might be." -- Margy Waller.

Offline KJP

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Re: Cleveland: Downtown Office Development News
« Reply #2135 on: August 07, 2018, 11:55:50 PM »
I guess it's now official/done?

The NRP Group Relocates Headquarters to Downtown Cleveland
PRESS RELEASE PR Newswire
 Aug. 7, 2018, 09:00 AM

CLEVELAND, Aug. 7, 2018 /PRNewswire/ -- The NRP Group, a vertically integrated, best-in-class developer, builder, and manager of multifamily housing, has relocated its headquarters to the Halle Building at 1228 Euclid Avenue in Downtown Cleveland from its current offices in Garfield Heights, Ohio.

MORE:
https://markets.businessinsider.com/news/stocks/the-nrp-group-relocates-headquarters-to-downtown-cleveland-1027438532
"Treat this (November 2018) election as if it's the last election in which you can fully exercise your democratic rights. Because it just might be." -- Margy Waller.

Offline KJP

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Re: Cleveland: Downtown Office Development News
« Reply #2136 on: August 08, 2018, 11:46:39 PM »
Interesting report with very detailed breakdown of Class A and Class B data in different submarkets around the metro area. It also suggests that if any new inventory is built downtown, the anchor tenant(s) could come from the suburbs....

Urban migration, flight to quality are trends to watch

Top trends
• Downtown Cleveland has undergone a transformation and the market
has seen a procession of office tenants relocate to the urban core.
• Flight to quality has been a dominant trend this cycle, as businesses
invest in the workplace as a means to attract and retain top talent.
• Looking forward we see vacancy steadily declining with rent growth
averaging 2.0 percent annually. New construction will be limited.

Downtown Cleveland has undergone a transformation over the last five years,
one that has been well documented in the national media. Dozens of new
restaurants have opened, several new hotels have been built, and downtown
has welcomed close to 5,000 new residents. Companies have taken notice,
and the market has seen a steady procession of office tenants relocate to the
central business district. As a result, office vacancy has declined and market
conditions downtown have shifted from tenant-favorable to a neutral state.
This trend has been intensified by the conversion of 3.6 million square feet of
underperforming office buildings to residential use. While conditions have
tightened, opportunities for office users still exist across the quality spectrum.
Despite the recent run-up downtown, the suburbs remain the principal
corporate address, home to 81.0 percent of the region’s headquarters. One of
the most prevailing trends of this cycle has been the flight to quality, as
businesses invest in the workplace as a means to attract and retain top talent.
As evidence, six corporate headquarters have been constructed in the
suburbs since 2012 totaling 1.6 million square feet. Speculative developers
have also been accommodating the flight to quality trend, delivering 300,000
square feet of new multi-tenanted office space over the last year.
Outlook
Office vacancy in Cleveland currently stands at 19.3 percent and will likely end
2018 unchanged due to the speculative office developments completed
earlier this year. Taking a longer-term view, we see vacancy declining at a
modest rate of 1.0 percent annually for the next few years. Rents are projected
to appreciate annually in the 2.0 percent range as the market tightens and
owners upgrade assets. The construction forecast is limited. However, several
proposed projects could kick off with the signing of an anchor tenant. All in
all, the Cleveland office market will remain favorable for corporate users with
affordable rents and ample opportunities across the metro.

MORE:
http://www.jll.com/united-states/en-us/Research/US-Cleveland-Office-Outlook-Q2-2018-JLL.pdf
"Treat this (November 2018) election as if it's the last election in which you can fully exercise your democratic rights. Because it just might be." -- Margy Waller.

Offline KJP

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Re: Cleveland: Downtown Office Development News
« Reply #2137 on: August 09, 2018, 10:11:30 AM »
Bargain buying! Listen to the always insightful Alec Pacella (of NAI Daus) as he does a YouTube item on the Tower at Erieview sale and his view on the big challenges it faces from competition. 
"Treat this (November 2018) election as if it's the last election in which you can fully exercise your democratic rights. Because it just might be." -- Margy Waller.

Offline KJP

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"Treat this (November 2018) election as if it's the last election in which you can fully exercise your democratic rights. Because it just might be." -- Margy Waller.

Offline freethink

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Re: Cleveland: Downtown Office Development News
« Reply #2139 on: August 14, 2018, 10:36:08 PM »

Offline KJP

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Re: Cleveland: Downtown Office Development News
« Reply #2140 on: August 14, 2018, 11:57:25 PM »
Yep. Posted in the 55 Public Square thread. ;)
"Treat this (November 2018) election as if it's the last election in which you can fully exercise your democratic rights. Because it just might be." -- Margy Waller.