Author Topic: Cleveland: Downtown Office Development News  (Read 419572 times)

0 Members and 2 Guests are viewing this topic.

Offline 3231

  • Global Moderator
  • *****
  • Posts: 4269
Re: Cleveland: Downtown Office Development News
« Reply #1925 on: June 01, 2017, 02:18:16 PM »
I heard some bad news over the weekend.  Hopefully it's not true, but I heard from a Sherwin employee that due to the Valspar acquisition - the expansion of Sherwin may come outside of downtown.  I forget the location, but certainly not the tower on Public Square that we all wanted.

Are they also planning to amend S-W's corporate charter that requires their HQ to be within 1 mile of 601 Canal Road, where the company was founded in 1866?

Or put the Valspar subsidiary HQ outside of downtown?

Did RE Developer in Training delete his post or did he post in another thread? That would be horrible news if SW left downtown. If it meant saving millions of dollars, i'm sure the shareholders would amend the corporate charter to remove the 1-mile radius restriction. that said, i'm not completely up to date on all that goes into amending corporate charters.

Offline mrclifton88

  • Premium Member
  • *****
  • Posts: 1238
Re: Cleveland: Downtown Office Development News
« Reply #1926 on: June 01, 2017, 03:36:06 PM »
Sherwin-Williams covers more of the earth as it completes $11.3 billion Valspar acquisition

http://www.crainscleveland.com/article/20170601/NEWS/170609984/sherwin-williams-covers-more-of-the-earth-as-it-completes-11-3

The deal is done.  I found this interesting: "Sherwin-Williams on July 20 will announce financial results for the second quarter ended June 30. At that time, the company said, it will provide its outlook on the combined company for the third quarter and the full year 2017."  Any chance of a HQ announcement at this date?
« Last Edit: June 01, 2017, 03:36:33 PM by mrclifton88 »

Offline YABO713

  • 629'-Rhodes State Tower
  • *****
  • Posts: 509
Re: Cleveland: Downtown Office Development News
« Reply #1927 on: June 01, 2017, 05:13:43 PM »
Sherwin-Williams covers more of the earth as it completes $11.3 billion Valspar acquisition

http://www.crainscleveland.com/article/20170601/NEWS/170609984/sherwin-williams-covers-more-of-the-earth-as-it-completes-11-3

The deal is done.  I found this interesting: "Sherwin-Williams on July 20 will announce financial results for the second quarter ended June 30. At that time, the company said, it will provide its outlook on the combined company for the third quarter and the full year 2017."  Any chance of a HQ announcement at this date?

Meh, maybe. Normally companies will do that on their call when consumer outlook is low on the brand. A new HQ shows that the company believes its in good financial footing - which S-W very much is. I just am not certain that they will want to touch the HQ issue just yet.
"They tell me of the River Cuyahoga in the Ohio territory; upon it a great city will emerge." - Correspondence of Thomas Jefferson in drafting 'Notes on the State of Virginia'

Offline KJP

  • Premium Member
  • *****
  • Posts: 37476
  • Rebuilding the cities that built America.
    • All Aboard Ohio
Re: Cleveland: Downtown Office Development News
« Reply #1928 on: June 01, 2017, 05:17:08 PM »
I heard some bad news over the weekend.  Hopefully it's not true, but I heard from a Sherwin employee that due to the Valspar acquisition - the expansion of Sherwin may come outside of downtown.  I forget the location, but certainly not the tower on Public Square that we all wanted.

Are they also planning to amend S-W's corporate charter that requires their HQ to be within 1 mile of 601 Canal Road, where the company was founded in 1866?

Or put the Valspar subsidiary HQ outside of downtown?

Did RE Developer in Training delete his post or did he post in another thread? That would be horrible news if SW left downtown. If it meant saving millions of dollars, i'm sure the shareholders would amend the corporate charter to remove the 1-mile radius restriction. that said, i'm not completely up to date on all that goes into amending corporate charters.

He posted it in another thread, and I responded to it here.
"Greater Cleveland is last in the country in number of jobs accessible in typical commute distance, creating a huge drag on economy and more air & water pollution."-- Vibrant NEO

Offline KJP

  • Premium Member
  • *****
  • Posts: 37476
  • Rebuilding the cities that built America.
    • All Aboard Ohio
Re: Cleveland: Downtown Office Development News
« Reply #1929 on: June 03, 2017, 09:49:05 AM »
I'm confused. Medical Mutual bought Healthspan two years ago and absorbed its supposedly 300 corporate jobs total, spread among Cincinnati and Cleveland. Healthspan is no more. And yet here's real estate market research firm Jones Lang LaSalle saying there were 1,100 Healthspan employees in downtown Cleveland in 2016. What gives? EDIT: the most recent listing for Healthspan's offices says they are in the North Pointe building on Lakeside at East 9th. Anyone here work in that building and can say if Healthspan (or Medical Mututal) is still shown in the building's directory?

Also, JLL says there are 3,430 Sherwin-Williams employees in downtown Cleveland. This is close to the numbers I've read about lately (2,800 HQ employees, 300-400 Breen R&D employees). Still, JLL's number is higher than any previous figure I've seen.

http://www.jll.com/Cleveland/en-us/Pages/RemoteResearch.aspx?URL=http://www.jll.com/united-states/en-us/research/8197/downtown-cleveland-2017-overview
« Last Edit: June 03, 2017, 10:03:01 AM by KJP »
"Greater Cleveland is last in the country in number of jobs accessible in typical commute distance, creating a huge drag on economy and more air & water pollution."-- Vibrant NEO

Offline KJP

  • Premium Member
  • *****
  • Posts: 37476
  • Rebuilding the cities that built America.
    • All Aboard Ohio
Re: Cleveland: Downtown Office Development News
« Reply #1930 on: June 03, 2017, 10:01:20 AM »
3. Regarding SW using 44 stories---is the work of R&D suitable for a vertical office bldg? Seems like most such facilities are short-wide bldgs.  But also, if they are doing testing and use volatile chemicals in processes, is it a good idea to have R&D (and the inherent dangers) in the same bldg as office workers?  Does the zoning code even allow it?


Good question. Is the quantity of volatile chemicals sufficient to threaten the structure of a building? It may be, since the three (S-W, Valspar, PPG) paint/coatings companies I've read about recently keeps their R&D in a building(s) separate from the corporate HQ. Valspar's HQ and R&D are in neighboring buildings in downtown Minneapolis. S-W's HQ and R&D are separate, but practically across the street from each other. And PPG has their HQ downtown and their main R&D facility in suburban Allison Park, plus other R&D facilities in Springdale, Monroeville and Harmar. PPG is considering consolidating these facilities:
http://www.bizjournals.com/pittsburgh/blog/innovation/2014/08/ppg-expands-research-headcount-in-pittsburgh.html
"Greater Cleveland is last in the country in number of jobs accessible in typical commute distance, creating a huge drag on economy and more air & water pollution."-- Vibrant NEO

Offline audidave

  • 771'-Terminal Tower
  • *******
  • Posts: 1178
  • Akron skyline
Re: Cleveland: Downtown Office Development News
« Reply #1931 on: June 03, 2017, 10:55:12 AM »
^^Don't forget there are contractors. I have met many people who have worked at Medical Mutual as IT contractors. I would imagine there are dozens working over in Beachwood. I can't speak to S-W, but I imagine they also use contractors but probably not as heavily.

Offline E Rocc

  • 2717'-Burj Khalifa
  • **********
  • Posts: 7602
  • Defender Of The Sprawl
Re: Cleveland: Downtown Office Development News
« Reply #1932 on: June 03, 2017, 12:49:59 PM »
3. Regarding SW using 44 stories---is the work of R&D suitable for a vertical office bldg? Seems like most such facilities are short-wide bldgs.  But also, if they are doing testing and use volatile chemicals in processes, is it a good idea to have R&D (and the inherent dangers) in the same bldg as office workers?  Does the zoning code even allow it?


Good question. Is the quantity of volatile chemicals sufficient to threaten the structure of a building? It may be, since the three (S-W, Valspar, PPG) paint/coatings companies I've read about recently keeps their R&D in a building(s) separate from the corporate HQ. Valspar's HQ and R&D are in neighboring buildings in downtown Minneapolis. S-W's HQ and R&D are separate, but practically across the street from each other. And PPG has their HQ downtown and their main R&D facility in suburban Allison Park, plus other R&D facilities in Springdale, Monroeville and Harmar. PPG is considering consolidating these facilities:
http://www.bizjournals.com/pittsburgh/blog/innovation/2014/08/ppg-expands-research-headcount-in-pittsburgh.html

Ferro's research area was always over on Pleasant Valley road while their HQ was downtown.
"I mean, this man just can't be president of the US. I mean, they got this button, it's in a briefcase, he's gonna find it."
- P. J. O'Rourke

Offline E Rocc

  • 2717'-Burj Khalifa
  • **********
  • Posts: 7602
  • Defender Of The Sprawl
Re: Cleveland: Downtown Office Development News
« Reply #1933 on: June 03, 2017, 12:51:42 PM »
I'm confused. Medical Mutual bought Healthspan two years ago and absorbed its supposedly 300 corporate jobs total, spread among Cincinnati and Cleveland. Healthspan is no more. And yet here's real estate market research firm Jones Lang LaSalle saying there were 1,100 Healthspan employees in downtown Cleveland in 2016. What gives? EDIT: the most recent listing for Healthspan's offices says they are in the North Pointe building on Lakeside at East 9th. Anyone here work in that building and can say if Healthspan (or Medical Mututal) is still shown in the building's directory?

My daughter's aunt was a contractor for Heathspan, working at North Point, until 5/31.
"I mean, this man just can't be president of the US. I mean, they got this button, it's in a briefcase, he's gonna find it."
- P. J. O'Rourke

Offline KJP

  • Premium Member
  • *****
  • Posts: 37476
  • Rebuilding the cities that built America.
    • All Aboard Ohio
Re: Cleveland: Downtown Office Development News
« Reply #1934 on: June 03, 2017, 01:36:45 PM »
Did the company lose the contract? Or did the contract come to an end?

The reason why I ask is that if these are Under the healthspan Umbrella and they are significant enough to measure over 1,000 workers, what impact will/did this have on Medical Mutual headquarters decision?
"Greater Cleveland is last in the country in number of jobs accessible in typical commute distance, creating a huge drag on economy and more air & water pollution."-- Vibrant NEO

Offline E Rocc

  • 2717'-Burj Khalifa
  • **********
  • Posts: 7602
  • Defender Of The Sprawl
Re: Cleveland: Downtown Office Development News
« Reply #1935 on: June 03, 2017, 01:39:10 PM »
Did the company lose the contract? Or did the contract come to an end?

The reason why I ask is that if these are Under the healthspan Umbrella and they are significant enough to measure over 1,000 workers, what impact will/did this have on Medical Mutual headquarters decision?

She's a pretty high up accounting/IT person so I believe they are scaling down but not close to shutting down.
"I mean, this man just can't be president of the US. I mean, they got this button, it's in a briefcase, he's gonna find it."
- P. J. O'Rourke

Offline KJP

  • Premium Member
  • *****
  • Posts: 37476
  • Rebuilding the cities that built America.
    • All Aboard Ohio
Re: Cleveland: Downtown Office Development News
« Reply #1936 on: June 03, 2017, 01:50:24 PM »
Gobble, gobble, gobble.....

TransDigm Group acquires three aerospace product lines
June 02, 2017
By RACHEL ABBEY MCCAFFERTY   

Cleveland-based aircraft component maker TransDigm Group Inc. recently acquired three aerospace product lines for about $100 million, the company announced in a news release.

The release did not specify what companies or portions of companies were acquired, and a message left for TransDigm was not returned as of publication on Friday, June 2. The lines have about $32 million in combined revenue, and the acquisition was financed through existing cash in hand, the release stated.

The product lines will be consolidated into TransDigm businesses and include "highly engineered aerospace controls, quick disconnect couplings, and communication electronics," the release stated.

MORE:
http://www.crainscleveland.com/article/20170602/NEWS/170609956/transdigm-group-acquires-three-aerospace-product-lines
"Greater Cleveland is last in the country in number of jobs accessible in typical commute distance, creating a huge drag on economy and more air & water pollution."-- Vibrant NEO

Offline KJP

  • Premium Member
  • *****
  • Posts: 37476
  • Rebuilding the cities that built America.
    • All Aboard Ohio
Re: Cleveland: Downtown Office Development News
« Reply #1937 on: June 06, 2017, 08:28:49 AM »
Cleveland City Council approves closing jail, selling police headquarter

CLEVELAND, Ohio - Cleveland City Council voted Monday to approve legislation to close the city's jail and to pay Cuyahoga County to house prisoners and suspects.

Council also voted to sell the downtown building that houses the city jail and police headquarters to Cuyahoga County. With closure of the jail, the headquarters could be moved to another building downtown.

The long-discussed deal is expected to save Cleveland about $5 million a year. Rather than operating a jail, the city would pay the county $99 a day per person to house its prisoners. 

The Cuyahoga County sheriff's staff would handle the booking of all prisoners. 

http://www.cleveland.com/metro/index.ssf/2017/06/cleveland_city_council_to_appr.html#incart_m-rpt-1

The move will take a full 1% of the Class B office space off the downtown Cleveland market.
"Greater Cleveland is last in the country in number of jobs accessible in typical commute distance, creating a huge drag on economy and more air & water pollution."-- Vibrant NEO

Offline Clefan98

  • 947'-Key Tower
  • ********
  • Posts: 1436
Re: Cleveland: Downtown Office Development News
« Reply #1938 on: June 06, 2017, 09:30:06 AM »
This article notes the Halle building will be fully leased after NRP's move. 

NRP Group plans headquarters move to Downtown Cleveland


A national apartment developer plans to move its headquarters and more than 100 jobs from Garfield Heights to Downtown Cleveland by early next year.

The NRP Group, LLC, has signed a deal to fill the fourth floor of the Halle Building on Euclid Avenue, at the western edge of downtown's Playhouse Square district. The move would involve 116 existing headquarters jobs, plus an unspecified number of workers now scattered across the region.

The 43,000-square-foot lease ties up the last notable commercial vacancy at Halle, a former department store turned office building that is slated to undergo a partial residential conversion. Construction on lower-floor offices, including NRP's space, could start next month, with apartments to follow on the building's upper levels.

http://www.downtowncleveland.com/news/june-2017/nrp-group-plans-headquarters-move-to-downtown-clev

Online freethink

  • 1450'-Willis Tower
  • *********
  • Posts: 1904
Re: Cleveland: Downtown Office Development News
« Reply #1939 on: June 08, 2017, 01:20:44 PM »
Just a part of a PR release regarding SW.

Sherwin-Williams will announce financial results for the second quarter ended June 30, 2017 on Thursday, July 20, 2017. At that time, Sherwin-Williams will provide its outlook on the combined company for the third quarter and full year 2017, and conduct a conference call to answer questions.  Further details regarding the call will be available in coming weeks.
live small  dream big

Online Htsguy

  • 2717'-Burj Khalifa
  • **********
  • Posts: 2453
Re: Cleveland: Downtown Office Development News
« Reply #1940 on: June 13, 2017, 11:15:20 AM »
KJP...you posted today in the Med Mutual thread that the "earliest" (which of course implies it could be later) you anticipate an announcement from Sherwin Williams regarding a new HQ building would be a month from now.

Since you seem to be following this development with great interest, I am curious what form you believe that announcement will take when made:

1.  We are looking for a new HQ building and are in the process of investigating our needs. (Since actually, despite all the speculation on this board I don't believe at any point in the past couple of years has the company "formally"  stated this...although I could be wrong)

2.  We are looking for a new HQ building and are in the process of investigating our needs and evaluating proposals from various developers.

3.  We are going to build a new HQ building at this site.

4.  We are going to build a new HQ building at this site with this developer.

5.  We are going to build a new HQ building at this site with this developer and this is a conceptual rendering of the project.

6.  We are going to build a new HQ building at this site with this developer, plans are firm and we are ready to begin the formal design review process.

7.  We are going to build a new HQ building at this site with this developer, plans are firm and we will begin construction in early 2018.

Offline Dougal

  • 555'-LeVeque Tower
  • ***
  • Posts: 324
Re: Cleveland: Downtown Office Development News
« Reply #1941 on: June 13, 2017, 11:33:51 AM »
Since you seem to be following this development with great interest, I am curious what form you believe that announcement will take when made:

Whatever they say, my bet is it will be a low-key announcement, not much noticed outside of Cleveland. The only exception to that would be if the new hqs were something spectacular, like Apple's "cyclotron" building; but spectacular isn't SWP's style.

Offline KJP

  • Premium Member
  • *****
  • Posts: 37476
  • Rebuilding the cities that built America.
    • All Aboard Ohio
Re: Cleveland: Downtown Office Development News
« Reply #1942 on: June 13, 2017, 02:13:27 PM »
Frankly Htsguy, I have no idea what to expect. So far, the most that S-W has officially said is "no comment" when asked about a new HQ, which is itself a tacit admission. That later became "we're focused on the Valspar acquisition." If they go back to their "no comment" then the HQ is back in play. But I don't expect them to come out and say anything unless asked. Of course, for investor disclosures, S-W is going to have to say something at some point, but that could be right before they're due to appear on Planning Commission's docket with a formal application -- much like Playhouse Square just did with its tower. I just don't know how far along S-W is at this point in their due diligence.
"Greater Cleveland is last in the country in number of jobs accessible in typical commute distance, creating a huge drag on economy and more air & water pollution."-- Vibrant NEO

Offline KJP

  • Premium Member
  • *****
  • Posts: 37476
  • Rebuilding the cities that built America.
    • All Aboard Ohio
"Greater Cleveland is last in the country in number of jobs accessible in typical commute distance, creating a huge drag on economy and more air & water pollution."-- Vibrant NEO

Offline jfristik

  • 367'-PNC Bank
  • **
  • Posts: 64
  • The Remake on the Lake
Re: Cleveland: Downtown Office Development News
« Reply #1944 on: June 14, 2017, 08:14:12 AM »
Just a part of a PR release regarding SW.

Sherwin-Williams will announce financial results for the second quarter ended June 30, 2017 on Thursday, July 20, 2017. At that time, Sherwin-Williams will provide its outlook on the combined company for the third quarter and full year 2017, and conduct a conference call to answer questions.  Further details regarding the call will be available in coming weeks.

Unfortunately, I would advise not to get excited for any announcements related to a new HQ building on the second quarter earnings release. Generally, SEC filed earnings releases do not disclose that type of information. They may disclose non-recurring costs related to the acquisition and future synergies (but not at a level that would tip their hand to a new building).

Here is the link to the first quarter earnings release: https://www.sec.gov/Archives/edgar/data/89800/000119312517129703/d381903dex99.htm. Similar to other preliminary earnings releases, the CEO will read from the report on a public conference call/webcast and the CEO/CFO will answer questions from analysts about operating results.

Offline KJP

  • Premium Member
  • *****
  • Posts: 37476
  • Rebuilding the cities that built America.
    • All Aboard Ohio
Re: Cleveland: Downtown Office Development News
« Reply #1945 on: June 24, 2017, 08:17:28 AM »
Lots of good news in this piece...

Digital marketing firm Robots and Pencils plans to march to downtown Cleveland from Beachwood
June 23, 2017
By SCOTT SUTTELL 

Write it down: Digital marketing and app development firm Robots and Pencils plans to move to Cleveland from Beachwood and expand its operations here.

The Ohio Tax Credit Authority on Friday, June 23, approved a seven-year, 2.27% tax credit for Robots and Pencils for a project that will create 54 jobs, representing $5.94 million in new annual payroll. The company also will retain $2.168 million in existing annual payroll, according to information provided by the state.

In a phone interview on Friday afternoon, Robots and Pencils CEO Michael Sikorsky said the company will move this fall to 7,500 square feet in a building at 1215 Superior Ave. in downtown Cleveland. The tax credit will assist with the buildout of the downtown space.

Sikorsky said one of the company's core philosophies goes by the acronym "FTT" — follow the talent.

"Talent today wants to be downtown, in the heart of the city," he said.

The company at present has 38 people in an office at 23245 Mercantile Road in Beachwood, which it added when the company in January merged with a small digital marketing firm, Kinetiq Digital. At the time of the deal, Sikorsky said, there were 13 people in the Beachwood office, so growth has been rapid so far this year.

Sikorsky said the downtown Cleveland office will be the U.S. headquarters for Robots and Pencils, which is based in Calgary, Alberta, and develops consumer applications, enterprise software, education platforms and mobile strategy services.

MORE:
http://www.crainscleveland.com/article/20170623/NEWS/170629877/digital-marketing-firm-robots-and-pencils-plans-to-march-to-downtown
"Greater Cleveland is last in the country in number of jobs accessible in typical commute distance, creating a huge drag on economy and more air & water pollution."-- Vibrant NEO

Offline KJP

  • Premium Member
  • *****
  • Posts: 37476
  • Rebuilding the cities that built America.
    • All Aboard Ohio
Re: Cleveland: Downtown Office Development News
« Reply #1946 on: June 24, 2017, 08:26:45 AM »
And then some bad news....

Forest City Realty Trust cuts 50 jobs
June 23, 2017
By STAN BULLARD

Forest City Realty Trust Inc. (NYSE: FCE) confirmed Friday, June 23, that it has trimmed 29 jobs at its Terminal Tower headquarters as part of a 50-worker downsizing across the nation.

Workers will be leaving the company over the next several months as the Cleveland-based real estate empire continues to shed properties, such as its enclosed shopping mall portfolio, that do not fit its focus on large, complicated urban mixed-use projects in 10 major markets nationwide. The home of its headquarters and the firm's founding is not on the list of cities where it plans to continue to make property investments such as Dallas, New York City and San Francisco.

MORE:
http://www.crainscleveland.com/article/20170623/NEWS/170629873/forest-city-realty-trust-cuts-50-jobs
"Greater Cleveland is last in the country in number of jobs accessible in typical commute distance, creating a huge drag on economy and more air & water pollution."-- Vibrant NEO

Offline KJP

  • Premium Member
  • *****
  • Posts: 37476
  • Rebuilding the cities that built America.
    • All Aboard Ohio
Re: Cleveland: Downtown Office Development News
« Reply #1947 on: June 24, 2017, 08:36:47 AM »
State aid will cement NRP's HQ move downtown
June 23, 2017
By STAN BULLARD

Talk about dodging a bullet — or more accurately, a corporate loss.

As the Ohio Tax Credit Authority on Friday, June 23, approved a seven-year, 1.65% tax credit to an affiliate of real estate owner and developer NRP Group, state records indicate the Garfield Heights company also entertained the possibility of moving to Texas.

The document confirmed a rumor that circulated while the apartment and affordable tax-credit residential developer was looking at moving to the Halle Building downtown that it might move to San Antonio, where NRP has substantial holdings.

The rumor adds perspective to the potential move south, as companies typically threaten to move outside Ohio to secure the state aid.

However, NRP remained in its Northeast Ohio birthplace, although it plans to move to the Halle Building, 1228 Euclid Ave.

MORE:
http://www.crainscleveland.com/article/20170623/NEWS/170629868/state-aid-will-cement-nrps-hq-move-downtown
"Greater Cleveland is last in the country in number of jobs accessible in typical commute distance, creating a huge drag on economy and more air & water pollution."-- Vibrant NEO

Offline KJP

  • Premium Member
  • *****
  • Posts: 37476
  • Rebuilding the cities that built America.
    • All Aboard Ohio
Re: Cleveland: Downtown Office Development News
« Reply #1948 on: June 27, 2017, 04:30:49 PM »
New York Community Bancorp sells Cleveland-based mortgage business to Freedom Mortgage
June 27, 2017
By SCOTT SUTTELL 

Freedom Mortgage Corp. said it has agreed to buy $500 million in residential mortgage assets from New York Community Bancorp (NYSE: NYCB) and will hire "select employees in originations, servicing and operations" from the Westbury, N.Y., firm's Cleveland-based mortgage operation.

Specific financial terms were not disclosed. The deal includes the right to service more than $20 billion of residential mortgage loans, Mount Laurel, N.J.-based Freedom Mortgage said in a news release. The servicing portfolio includes Fannie Mae- and Freddie Mac-approved loans as well as what Freedom Mortgage called "a relatively small amount" of Ginnie Mae-insured mortgages.

A Freedom Mortgage spokeswoman did not immediately return a voicemail asking about the company's plans to retain Cleveland employees from New York Community's mortgage operations here.

MORE:
http://www.crainscleveland.com/article/20170627/NEWS/170629810/new-york-community-bancorp-sells-cleveland-based-mortgage-business
"Greater Cleveland is last in the country in number of jobs accessible in typical commute distance, creating a huge drag on economy and more air & water pollution."-- Vibrant NEO

Offline KJP

  • Premium Member
  • *****
  • Posts: 37476
  • Rebuilding the cities that built America.
    • All Aboard Ohio
Re: Cleveland: Downtown Office Development News
« Reply #1949 on: July 05, 2017, 09:06:59 PM »
16.4% office vacancy is Cleveland's lowest in nearly 16 years
http://www.terrycoyne.com/uploads_pdf/2Q17-Cleveland-Office-Market.pdf

And that might be artificially high due to the Zombie phenomenon.....

CBD Office Market
Zombie Space Impacting Vacancy

Eleven properties are negatively impacting the perception of vacant and
available space in the CBD. These properties, termed ‘zombie properties,’
have large blocks of vacant space that are not actively marketed to the office
community. These properties include buildings that are pending conversion
from office to residential, or are functionally obsolete. Downtown Cleveland’s
zombie properties include:
  Standard Building
  Leader Building
  75 Public Square
  Garfield Building
  Halle Building
  Former Cleveland Athletic Club
  925 Euclid Avenue
  Superior Lofts
  Tower at Erieview
  Terminal Tower
  3101 Euclid Avenue

The Tower at Erieview has more than 250,000 square feet of vacant space.
However, 180,000 to 225,000 square feet will be converted in the coming years
to residential apartments. Therefore, while the space is vacant, the building
ownership is not actively marketing the space. Zombie space adversely impacts
the vacancy rate of the Class B and Class C CBD markets. The Class B CBD
market has 24.0% vacancy. However, when the zombie property space is
removed from the survey, the vacancy rate declines to 18.2%. This figure
includes Forest City’s expected move to Key Tower. The Class C CBD market
vacancy similarly drops drastically from 22.4% to 15.4% when the zombie
properties are removed. The amount of vacant and available space in the CBD
is overstated when the zombie properties are included.

MORE:
http://www.terrycoyne.com/uploads_pdf/Jan%202017%20Zombie%20Placemat.pdf
« Last Edit: July 05, 2017, 09:10:09 PM by KJP »
"Greater Cleveland is last in the country in number of jobs accessible in typical commute distance, creating a huge drag on economy and more air & water pollution."-- Vibrant NEO

Offline KJP

  • Premium Member
  • *****
  • Posts: 37476
  • Rebuilding the cities that built America.
    • All Aboard Ohio
Re: Cleveland: Downtown Office Development News
« Reply #1950 on: July 08, 2017, 02:05:09 PM »
I just realized there's an older building that's not on that list and has hundreds of thousands of square feet available for an office user(s). This has to be on the radar of the CPD, MM and others searching for a large block of office space...

200 Euclid Avenue, Cleveland, OH 44114

Description
Prime Retail Space | Former May Company location, 200 Euclid Avenue, Downtown Cleveland.
Entire Building - 760,000 SF of office available in building. Potential mixed-use redevelopment.

http://www.loopnet.com/Listing/17661780/200-Euclid-Avenue-Cleveland-OH/

"Greater Cleveland is last in the country in number of jobs accessible in typical commute distance, creating a huge drag on economy and more air & water pollution."-- Vibrant NEO

Offline KJP

  • Premium Member
  • *****
  • Posts: 37476
  • Rebuilding the cities that built America.
    • All Aboard Ohio
Re: Cleveland: Downtown Office Development News
« Reply #1951 on: July 08, 2017, 02:12:00 PM »
Interesting stuff...

55 Public Square shows only 77,237 SF available. Don't see how CPD can fit in there...
http://www.loopnet.com/Listing/9746264/55-Public-Sq-Cleveland-OH/

The Ritz Hotel building has so much office space available. It apparently all became available at the same time -- in March of this year:

250 W Huron Rd
Cleveland, OH 44113 · 109,072 SF Available
http://www.loopnet.com/Listing/20229350/250-W-Huron-Rd-Cleveland-OH/

Eight floors (26-33) of the 35-story PNC building appear to be empty, totaling 163,000 SF:

1900 E 9th Street
Cleveland, OH 44114 · Office For Lease
http://www.loopnet.com/Listing/19112609/1900-E-9th-Street-Cleveland-OH/

Look at how much space is listed as available in the AECOM building, although not much of it is contiguous...

1300 E 9th St
Cleveland, OH 44114 · 231,854 SF AVAILABLE
http://www.loopnet.com/Listing/18277324/1300-E-9th-St-Cleveland-OH/
« Last Edit: July 08, 2017, 02:28:07 PM by KJP »
"Greater Cleveland is last in the country in number of jobs accessible in typical commute distance, creating a huge drag on economy and more air & water pollution."-- Vibrant NEO

Offline E Rocc

  • 2717'-Burj Khalifa
  • **********
  • Posts: 7602
  • Defender Of The Sprawl
Re: Cleveland: Downtown Office Development News
« Reply #1952 on: July 09, 2017, 06:26:08 PM »
I just realized there's an older building that's not on that list and has hundreds of thousands of square feet available for an office user(s). This has to be on the radar of the CPD, MM and others searching for a large block of office space...

200 Euclid Avenue, Cleveland, OH 44114

Description
Prime Retail Space | Former May Company location, 200 Euclid Avenue, Downtown Cleveland.
Entire Building - 760,000 SF of office available in building. Potential mixed-use redevelopment.

http://www.loopnet.com/Listing/17661780/200-Euclid-Avenue-Cleveland-OH/



Odd that they are showing it from the "rear", i.e the Prospect side of the building.   Because they wanted Terminal and Key in the picture?
"I mean, this man just can't be president of the US. I mean, they got this button, it's in a briefcase, he's gonna find it."
- P. J. O'Rourke

Offline Clefan98

  • 947'-Key Tower
  • ********
  • Posts: 1436
Re: Cleveland: Downtown Office Development News
« Reply #1953 on: July 12, 2017, 08:49:45 AM »
Southland Engineering opens Cleveland office

Southland Engineering has opened a new office — its seventh overall — in downtown Cleveland.

The engineering firm's new Midwestern outpost is located in the Fifth Third Building at 600 Superior Ave. East. It is led by principal engineer Mark Crawford, nearly a 30-year veteran of the industry whose resume includes projects such as the Carl R. Darnall Army Medical Center in Fort Hood, Texas, and M Resort in Las Vegas, according to Southland's website.

http://www.crainscleveland.com/article/20170711/NEWS/170719944/southland-engineering-opens-cleveland-office?utm_campaign=socialflow&utm_source=twitter&utm_medium=social

Offline KJP

  • Premium Member
  • *****
  • Posts: 37476
  • Rebuilding the cities that built America.
    • All Aboard Ohio
Re: Cleveland: Downtown Office Development News
« Reply #1954 on: July 12, 2017, 03:44:11 PM »
Cleveland-based cleaning firm sold for $1.25 billion
July 12, 2017 UPDATED 3 HOURS AGO
By STAN BULLARD   

ABM Industries Inc. (NYSE: ABM), a mammoth New York City-based provider of building-related services from cleaning to parking, has agreed to acquire for $1.25 billion GCA Services Group, a Cleveland-based provider of cleaning and related services with 37,000 employees across the nation.

The sellers of GCA are affiliates of Thomas H. Lee Partners LP of Boston and Goldman Sachs Merchant Banking Division of New York City. The private equity firms agreed to sell it for $851 million in cash and $399 million in shares of ABM common stock in the proposed transaction announced Wednesday, July 12.

The private equity groups will own about 14% of ABM's outstanding stock if the acquisition closes.

MORE:
http://www.crainscleveland.com/article/20170712/NEWS/170719927/cleveland-based-cleaning-firm-sold-for-1-25-billion
"Greater Cleveland is last in the country in number of jobs accessible in typical commute distance, creating a huge drag on economy and more air & water pollution."-- Vibrant NEO

Offline YABO713

  • 629'-Rhodes State Tower
  • *****
  • Posts: 509
Re: Cleveland: Downtown Office Development News
« Reply #1955 on: July 12, 2017, 04:26:06 PM »
Cleveland-based cleaning firm sold for $1.25 billion
July 12, 2017 UPDATED 3 HOURS AGO
By STAN BULLARD   

ABM Industries Inc. (NYSE: ABM), a mammoth New York City-based provider of building-related services from cleaning to parking, has agreed to acquire for $1.25 billion GCA Services Group, a Cleveland-based provider of cleaning and related services with 37,000 employees across the nation.

The sellers of GCA are affiliates of Thomas H. Lee Partners LP of Boston and Goldman Sachs Merchant Banking Division of New York City. The private equity firms agreed to sell it for $851 million in cash and $399 million in shares of ABM common stock in the proposed transaction announced Wednesday, July 12.

The private equity groups will own about 14% of ABM's outstanding stock if the acquisition closes.

MORE:
http://www.crainscleveland.com/article/20170712/NEWS/170719927/cleveland-based-cleaning-firm-sold-for-1-25-billion

Given the institutions involved in the sale, I doubt jobs will be spared.
"They tell me of the River Cuyahoga in the Ohio territory; upon it a great city will emerge." - Correspondence of Thomas Jefferson in drafting 'Notes on the State of Virginia'

Offline KJP

  • Premium Member
  • *****
  • Posts: 37476
  • Rebuilding the cities that built America.
    • All Aboard Ohio
Re: Cleveland: Downtown Office Development News
« Reply #1956 on: July 15, 2017, 02:18:19 PM »
Good news, bad news.... Good news: the downtown office market still has more than half of the region's office inventory, and the office market is tightening with all of the office-to-residential conversions of obsolete office buildings and suburb-to-downtown relocations. Bad news: downtown has the highest vacancy rates, only the fifth-best absorption rate, and the second-highest rents...
_____________

http://www.jll.com/Cleveland/en-us/research

Q2 2017
Cleveland
Office Insight
For more information, contact: Andrew Batson | andrew.batson@am.jll.com

Residential conversions take a bite out of downtown
vacancy; new construction underway in the suburbs

• Businesses and residents continue to migrate downtown, spawning a
dramatic improvement in the office market over the last few years.
• Three speculative office developments are under construction in the East
submarket. Look for preleasing at these projects to accelerate in 2018.
• Tenant interest in the Midtown submarket is growing, prompting
Hemingway to move forward with its Link 59 office development.

It is an exciting time in downtown Cleveland, with new businesses and
residents moving in each month. The city has experienced a residential boom
over the last five years, much of which has been supported by office-toresidential
conversions. These redevelopment projects have removed large
swaths of functionally obsolete office space from the market, dramatically
reducing vacancy rates. National investors have been attracted by the
improving market conditions, and the ownership landscape looks much
different today than it did just a few years ago. These new owners have made
substantial upgrades to their assets, and have subsequently begun to push
rents higher. While there has been some talk of new office construction in
downtown Cleveland, these projects are a ways off. So as vacancy continues
to tighten over the coming year, we project asking rents climb higher.
Office demand is also strong in the suburbs, prompting the first speculative
office developments in years. Developers are particularly bullish on the East
submarket where three projects are under construction: Pinecrest (150,000
square feet) in Orange, Van Aken (66,000 square feet) in Shaker Heights, and
Highlands Center (47,000 square feet) in Beachwood. Each property has
secured preleasing commitments, signaling a companies’ willingness to pay a
rent premium for well-located, modern office space.
Outlook
Cleveland’s strengthening economy will increase office demand in 2017.
Downtown Cleveland will remain a key beneficiary of this growth, with
declining office vacancy and increased investor interest. The pace of
preleasing will pick up at the speculative office developments in the East
submarket. Finally, we will be watching the burgeoning Midtown submarket
closely this year. This neighborhood is seeing increased interest from tenants
and developers and we think 2017 will be a breakout year
« Last Edit: July 15, 2017, 02:19:25 PM by KJP »
"Greater Cleveland is last in the country in number of jobs accessible in typical commute distance, creating a huge drag on economy and more air & water pollution."-- Vibrant NEO

Offline KJP

  • Premium Member
  • *****
  • Posts: 37476
  • Rebuilding the cities that built America.
    • All Aboard Ohio
Re: Cleveland: Downtown Office Development News
« Reply #1957 on: July 17, 2017, 04:40:43 PM »
Greater Cleveland Partnership goes from tenant to landlord in downtown Cleveland
By Michelle Jarboe, The Plain Dealer
on July 17, 2017 at 2:22 PM, updated July 17, 2017 at 3:18 PM

CLEVELAND, Ohio -- The Greater Cleveland Partnership is shifting roles in downtown Cleveland's theater district, going from tenant to landlord with the purchase of a five-story building.

The regional chamber of commerce bought its offices, at 1240 Huron Road, in a deal that closed Friday. The purchase price was roughly $5.7 million, according to the Cuyahoga County Fiscal Office.

GCP has been the building's anchor tenant since 2011, when the chamber gave up its former home at the Higbee Building on Public Square to make way for a casino.

MORE:
http://realestate.cleveland.com/realestate-news/2017/07/greater_cleveland_partnership.html
"Greater Cleveland is last in the country in number of jobs accessible in typical commute distance, creating a huge drag on economy and more air & water pollution."-- Vibrant NEO

Offline KJP

  • Premium Member
  • *****
  • Posts: 37476
  • Rebuilding the cities that built America.
    • All Aboard Ohio
Re: Cleveland: Downtown Office Development News
« Reply #1958 on: Yesterday at 09:15:12 PM »
Today was Sherwin Williams' quarterly PR and conference call, its first report that includes financial results stemming from the Valspar acquisition. It passed without mention of a new downtown HQ. The closest the company came to saying anything about that was this quote from John G. Morikis, Chairman, President and Chief Executive Officer:

"Looking ahead, our focus is on strengthening the performance of our core businesses while completing the integration of the two companies with speed and precision. The former will require us to drive stronger architectural paint sell-through across all retail channels and capture raw material cost increases through appropriate pricing initiatives, particularly in our industrial coatings businesses. The latter means implementing the integration plans we have developed over the past 15 months, and recognizing when course correction is required. Our success in these two areas will create a highly differentiated enterprise better equipped to serve paint and coatings customers around the corner and around the globe."

SOURCE: http://www.prnewswire.com/news-releases/the-sherwin-williams-company-reports-2017-second-quarter-financial-results-300491313.html

EDIT: everything I'm reading from analysts is that S-W has the strongest growth potential in the coatings industry. I would think that, for a company that had already outgrown its existing HQ before acquiring Valspar, and has such strong growth potential, that a new HQ building would be among its priorities.
« Last Edit: Yesterday at 10:42:52 PM by KJP »
"Greater Cleveland is last in the country in number of jobs accessible in typical commute distance, creating a huge drag on economy and more air & water pollution."-- Vibrant NEO

Online freethink

  • 1450'-Willis Tower
  • *********
  • Posts: 1904
Re: Cleveland: Downtown Office Development News
« Reply #1959 on: Yesterday at 11:03:20 PM »
^My feelings on SW/MM is that these decisions are just not made during the summer. Those who would make that call are to busy with vacations/family/travel etc. Oct-Nov before the holidays is probably when will will see some movement. With MM being the first to announce.

In the meantime a building permit for 601 Canal to add what looks like parking spaces at the SW facility from Kaczmar Architects and SW has been posted. This could mean that some RD ppl from Valspar are making their way over to Cle. Which could also mean the RD facility will remain down by the river.

https://ca.permitcleveland.org/Public/Cap/CapDetail.aspx?Module=BuildingHousing&TabName=BuildingHousing&capID1=17BHO&capID2=00000&capID3=11292&agencyCode=COC&IsToShowInspection=
« Last Edit: Yesterday at 11:05:15 PM by freethink »
live small  dream big

Remove Ads