Jump to content
CMH_Downtown

Columbus: General Business & Economic News

Recommended Posts

Columbus' humming economy poised for growth, Federal Reserve predicts

 

 

Columbus' unemployment rate notably hit an 18-year low of 3.3% in June and has been below 4% for more than two years even as its workforce has grown. The city's per capita GDP is almost $6,000 higher today than it was in 2007, the researchers found, and it's seen faster GDP growth than the national average since the Great Recession.

 

"The Columbus metro area’s unemployment rate is low and falling even as the labor force expands," the researchers said. "The labor force in the Columbus metro area has grown by about 10,000 people this year, as people continue to be attracted to the area by the strong job prospects, driven by growth in the government, construction and transportation sectors."

Steady growth brought 12,400 jobs to the region in the 12 months through March, on par with the national growth rate, with construction surging 5.3% and government and financial services offsetting slower numbers in education and health services.

 

The Fed researchers highlighted the region's housing market too. The median home value, at $195,400, rose 6.9% year-over-year in August and has outpaced both state and national averages. Home prices here, the Fed economists noted, are affordable relative to the national average, but expensive for Ohio.

 

https://www.bizjournals.com/columbus/news/2019/11/04/columbus-humming-economy-poised-for-growth-federal.html?iana=hpmvp_colum_news_headline

  • Like 3

Share this post


Link to post
Share on other sites

WeWork opens in the Short North

 

img6202*750xx5184-2916-0-270.jpg

 

Even as the company's financial woes continue, coworking giant WeWork's first Ohio location is now open for business.

 

More below:

https://www.bizjournals.com/columbus/news/2019/12/03/photos-wework-opens-in-the-short-north.html


"You don't just walk into a bar and mix it up by calling a girl fat" - buildingcincinnati speaking about new forumers

Share this post


Link to post
Share on other sites

Here's a pretty cool article about Upstart(California tech company that moved their second HQ here and is in the Lincoln building for anybody that wasn't aware).  It talks about how they plan on growing this office bigger than the San Mateo one and that the CEO is also scouting for more office space.  It also mentions that Columbus has a ton of talent here(one of the other developers on my team actually just took a position with them) and that they also haven't had any trouble convincing people to come here from places like NYC.  There are also some cool pictures of the office and the views they have of downtown and the Short North.

 

CBF Cool Offices: Upstart's Columbus HQ2 could grow bigger than Silicon Valley home base

Upstart Network Inc. picked Columbus for its second headquarters 13 months ago and set a stretch goal of 100 employees by the end of 2019.

 

It's already hired 120, including data scientists, software engineers and customer support staff.

 

The Columbus office realistically could grow larger than the San Francisco-area headquarters within a year, CEO Dave Girouard said. The e-lending company has 220 employees in the San Mateo, California, home office today. Columbus could top 500, he said.

 

"We're incredibly confident the talent is here," Girouard said. "Our business is really strong right now, and there's no reason to think it won't be in the future."

Girouard was in Columbus Tuesday for an open house for vendors, fellow tech companies and public officials. He's also scouting Central Ohio real estate just months after moving into 15,000 square feet at 711 N. High St. in the Short North.

 

...

 

Columbus also has proven to be "an amazing place" for recruiting out-of-towners to move, he said. The office has hires who moved from New York City and Albuquerque.

 

More here: https://www.bizjournals.com/columbus/news/2019/12/04/cbf-cool-offices-upstarts-columbus-hq2-could-grow.html?iana=hpmvp_colum_news_headline

 

 

upstart1.PNG

upstart2.PNG

upstart3.PNG

Edited by TH3BUDDHA
  • Like 3

Share this post


Link to post
Share on other sites

Central Ohio to add another publicly traded company after $5.3B deal

vertivlogotmvrtrgbgry*1024xx833-469-0-85

Vertiv Holdings LLC, the data center and IT infrastructure spinout from Emerson Electric Co., will go public after a merger that values the company at $5.3. billion.

 

An affiliate of Goldman Sachs Group Inc. and David Cote, former CEO and executive chairman of Honeywell, created a holding company that Vertiv has agreed to join. Once the transaction closes in early 2020, the new company, renamed Vertiv Holdings Co., will trade on the New York Stock Exchange under the ticker VRT.

 

Rob Johnson remains CEO and the operations aren't affected at the company's 1050 Dearborn Dr. office. Cote will become executive chairman.

 

"We've built a great foundation over the past three years and I truly believe now is the right time to bring this company to the public market," Johnson said Tuesday in a call with investors.

 

More below:

https://www.bizjournals.com/columbus/news/2019/12/10/central-ohio-to-add-another-publicly-traded.html

  • Like 1

"You don't just walk into a bar and mix it up by calling a girl fat" - buildingcincinnati speaking about new forumers

Share this post


Link to post
Share on other sites

Catching up on some older articles/news:

 


https://www.dispatch.com/news/20190727/columbus-to-study-ways-to-boost-economic-vitality-of-route-161-corridor

 

Columbus city officials are taking a closer look at the Northland area in an effort to attract more businesses and customers to boost the neighborhood’s economy.  City Council voted to enter into a  Monday to enter into a contract with Arch City Development to provide a market analysis of a roughly four-mile stretch of the Route 161 corridor, from the I-71 exits on the west to the I-270 exits on the east.

 

Officials say the study will review current and expansion opportunities for businesses, evaluate land-use patterns and make recommendations that address market constraints, real estate development opportunities and potential programming to help businesses in the area thrive.

 

Brian Higgins, the principal for Arch City Development, said he will be analyzing the conditions along the corridor and talking to landowners, merchants and residents.  “It’s declined from its heyday, but that’s created opportunities for small ethnic businesses,” Higgins said.  Higgins said he’ll also be looking at housing needs.

Share this post


Link to post
Share on other sites

Columbus-Cincinnati-Louisville corridor becoming 'the heart of e-commerce' – how that's heating up the city's real estate market

 

Joe Kimener can hardly start a tour of a new warehouse site when the phone rings again.  This afternoon, he's trying to tour the gargantuan, 1.2-million-square-foot warehouse now framed off I-70 in Etna that is coming together quickly as acres of concrete are poured and tons of dirt smoothed out.  When it's done, Kohl's Department Stores will ramp up an e-commerce distribution hub slated to employ 700.

 

It's part of the 155-acre The Cubes at Etna 70 development, where Kimener and Jeff Lyons of CBRE have been retained as listing agent for what will be 4 million square feet of new warehouses in eight buildings.  Kohl's immediately took one of the largest available plots, and brokers have been scrambling to make deals happen even in spaces of this scale.  "E-commerce is really driving things," Kimener said.

 

Columbus has seen 14 million square feet of activity for e-commerce operations since 2014 – 38% of all warehouse leasing activity.  In a recent research report, JLL dubbed the Columbus-Cincinnati-Louisville I-71 corridor as "the heart of e-commerce," noting 44% of all warehouse leasing activity across the three cities' 439 million square feet of warehouse inventory was for e-commerce.  The corridor has grown in prominence at a time that e-commerce sales have jumped 49.2% since 2012 and now account for 9.8% of all retail sales - and is projected to grow to 17.4% of all retail sales by 2022.

 

MORE:  https://www.bizjournals.com/columbus/news/2019/08/16/i-71-through-columbus-becoming-the-heart-of-e.html

Share this post


Link to post
Share on other sites

Columbus Business First profiles the 2019 JLL Columbus Skyline Report - which looks at downtown office vacancy and lease rates - and includes a slideshow of 14 downtown properties.  Business First also included a slideshow of 13 announced downtown (and downtown adjacent) projects that will add to the existing office space inventory:

 

https://www.bizjournals.com/columbus/news/2019/08/25/skyline-report-these-columbus-towers-have-the.html

Share this post


Link to post
Share on other sites

industrious-the-sutton-1.jpg

 

Photos: Inside the Short North's latest coworking addition

 

New York-based coworking company Industrious has officially opened its second Short North location, a significant expansion of the national brand's Columbus presence.

 

The 30,000-square-foot location includes 96 office suites and room for up to 381 members on the third and fourth floors of the newly constructed 875 N. High Street building.  The building is part of The Sutton, a multi-phase mixed-use project from Columbus-based Pizzuti Cos. that will also include a neighboring six-story apartment building.

 

Pizzuti is also Industrious' landlord at its first Short North location, a 30-office coworking space in the Offices at the Joseph at 629 N. High Street.  That site will remain open.

 

MORE:  https://www.bizjournals.com/columbus/news/2019/09/03/photos-inside-the-short-norths-latest-coworking.html

Share this post


Link to post
Share on other sites

Columbus 2020's biggest accomplishment – and how to repeat it, according to CEO Kenny McDonald

 

Columbus 2020 hit its targets for growth of jobs, private investment and per capita income in its first decade, but CEO Kenny McDonald doesn't think those were its most important accomplishment.  The economic development organization was formed in 2010 in the aftermath of the recession to attract and retain job-creating businesses for the 11-county region.  "We weren't the only community saying we've got to do something," McDonald said.  But Central Ohio kept beating that drum.  Also, what started as a loose confederation of local governments is truly acting as a unified region.

 

Renamed One Columbus as it faces the next 10 years and beyond, it will continue to make progress only if it keeps a long-term strategy instead of getting distracted by quarterly or annual statistics, he said.  "As soon as you start thinking long term, you make greater strides in the short term," McDonald said.  "When you're stuck in the everyday and you're just trying to put out flames, you get nowhere."

 

As One Columbus, the organization has revamped its monitoring of progress and set new concrete goals for jobs and investment, but added a new emphasis on true prosperity that's shared more equally.  "We want to talk about growth and prosperity in the same breath," McDonald said.  "It isn't growth for growth's sake anymore – which was perfectly rational in 2010."  That means emphasizing the economic development effects of affordable housing, income inequality, smart mobility and environmental sustainability.

 

MORE:  https://www.bizjournals.com/columbus/news/2019/09/04/columbus-2020s-biggest-accomplishment-and-how-to.html

Share this post


Link to post
Share on other sites

Two Japanese auto suppliers expanding in Central Ohio:

 

https://www.bizjournals.com/columbus/news/2019/09/09/auto-parts-maker-investing-10-7m-in-grove-city.html -- Tigerpoly Manufacturing is investing $10.7 million and expects to add 40 new jobs at its Central Ohio facility.  The Osaka, Japan-based manufacturer makes rubber and plastic parts for the automotive industry.  The company already employs 395 people in the area and plans to add 105,000 square feet to its nearly 200,000 square feet of operations at 6231 Enterprise Pkwy. in Grove City.

 

https://www.dispatch.com/business/20190911/jefferson-industries-to-add-150-jobs-as-part-of-west-jefferson-expansion -- Jefferson Industries will create 150 jobs and invest $10.8 million as part of its plan to expand its West Jefferson operations.  The company’s West Jefferson facility has been in operation for 30 years and has more than 600 employees.  Jefferson Industries will expand its existing building by 77,000 square feet, bringing its total size to nearly 1.2 million square feet.  The company is a global manufacturer of automotive body frames.

 

  • Like 1

Share this post


Link to post
Share on other sites

A few months ago I made fun off Motorists Insurance rebranding itself as Encova.  But after seeing the new market valuation for Columbus-based insurance tech startup Root Insurance, I can see why they rebranded.  In today's market, being a "tech company that sells insurance" more valuable than just being an insurance company.

 


Supersized unicorn: Root Insurance leaps to $3.65B valuation with $350M round

 

Root Insurance is now valued at $3.65 billion after a $350 million funding round – the largest single venture capital round ever in the state.  The fast-growing Columbus startup was previously the first "unicorn" – a company valued at more than $1 billion – among more than 2,000 insurance technology startups, according to a report from Deloitte.

 

The Wall Street Journal, citing sources close to the deal, recently reported a new funding round has shot the auto insurer's value up to $3.65 billion.  That's more than twice the market capitalization of Columbus-based State Auto Insurance.

 

Meanwhile, less than five years after its founding, parent company Root Inc. is closing in on the ranks of the 100 largest employers in Central Ohio, with more than 700 local employees in Columbus, split between its downtown headquarters and an Easton support office.  That's almost as big as Grange Insurance, and a significant jump from the 140 employees the company had at this time last year.

 

MORE:  https://www.bizjournals.com/columbus/news/2019/09/09/supersized-unicorn-root-insurance-leaps-to-3-65b.html

 

  • Like 1

Share this post


Link to post
Share on other sites

Some more about Root Insurance:

 

How Columbus-based Root Inc. is disrupting the $250 billion auto insurance industry with its all-digital, data-driven approach

-- https://www.bizjournals.com/columbus/news/2019/09/05/root-shoots-up-how-this-fast-growing-startup-is.html

 

A look at Root's new headquarters inside the recently completed 80 on the Commons

-- https://www.bizjournals.com/columbus/news/2019/09/05/slideshow-root-insurances-basks-in-bold-colors.html

Share this post


Link to post
Share on other sites

And still more about Root.  It joins other local startup companies CoverMyMeds and Beam Dental in a documentary on Columbus startups called 'Test City, USA'.  CoverMyMeds founding CEO Matt Scantland, Beam Dental CEO Alex Frommeyer and Drive Capital co-founder Mark Kvamme join Root co-founders Alex Timm and Dan Manges in featured interviews:

 

https://www.bizjournals.com/columbus/news/2019/09/11/test-city-usa-root-covermymeds-beam-dental.html

 

 

Share this post


Link to post
Share on other sites
On 1/15/2020 at 1:54 PM, Columbo said:

A few months ago I made fun off Motorists Insurance rebranding itself as Encova.  But after seeing the new market valuation for Columbus-based insurance tech startup Root Insurance, I can see why they rebranded.  In today's market, being a "tech company that sells insurance" more valuable than just being than just being an insurance company. 

 

Money is on Root selling in under 5 years. The technology is great. Unfortunately, it's not transferring to a profitable model for them. They've not turned a profit, as they grow, they reduce soft benefits, some markets have seen more than doubling of rates making them more expensive than standard insurance companies. The selling point of only being charged fair rates because of your usage and not insuring anyone with any sort of adverse risk is only getting them so far. The laws of insurance are winning out. In 2017 they met loss 15.6 million. In 2019 they met loss 58.6 million. The 2019 numbers are not out yet publicly. 

 

Meanwhile, major competitors are buying up and investing in the same technology and when one can get the same type of rate and claims service through a well known brand like geico at a lower rate, the selling point of Root becomes less attractive. State Farm, Geico, Progressive, and even Nationwide will all offer the same product for less within a few short years. 

 

They will continue to be wildly successful and expand and rake in fundraising dollars but I see them going the way of Cover My Meds and being absorbed by a larger brand before long. Chances are, it would be a brand that doesn't have the ability to build the tech from the ground up that major companies have. Perhaps a Motorists or Encova etc. The question will be whether they maintain an aspect of autonomy like Cover My Meds or be fully absorbed in an acquisition. 

 

But after all, that is the nature of startups, mergers, and acquisitions. 

 

  • Like 1
  • Thanks 1

Share this post


Link to post
Share on other sites

Wasn't sure where to put this, but it talks about growth in employers, so I'll put it here.

 

Construction Dive's 'mini megacities' to watch: Columbus, Ohio

 

When it comes to construction, Columbus, Ohio, is hot and getting hotter.

 

For nearly a decade, the capital of the Buckeye State has enjoyed an influx of employers and residents that culminated in a year of construction like none other in the city’s history. Construction starts in the metropolitan area were estimated at $6 billion in 2019 — 18% more than the year before — and industry watchers say they could go even higher for 2020.

 

The jobs driving this growth come from a range of well-known public and private sources: Ohio State University, Google, Facebook and corporate headquarters for companies like Victoria's Secret, Cardinal Health and Nationwide Insurance.

 

...

 

More here: https://www.constructiondive.com/news/construction-dives-mini-megacities-to-watch-columbus-ohio/570792/

Edited by TH3BUDDHA
  • Like 2

Share this post


Link to post
Share on other sites

Columbus one of two choices for $5B cloud tech company headquarters

 

Swiss-based Veeam Software Corp. has narrowed its choice for a new headquarters to its two largest U.S. offices in Columbus and suburban Atlanta, its CEO said.

 

Each office has more than 300 employees, making up about half Veeam's U.S. workforce. CEO Bill Largent is in Columbus and CFO Chuck Garner is in Alpharetta. Both regions offer a wealth of college graduates for recruiting, Largent said.

 

...

 

Insight Partners, a New York City venture capital and private equity firm that specializes in software, announced this month it's acquiring Veeam for $5 billion and moving headquarters away from Baar, Switzerland.

 

More here: https://www.bizjournals.com/columbus/news/2020/01/29/exclusive-columbus-one-of-two-choices-for-5b-cloud.html?iana=hpmvp_colum_news_headline

 

Edited by TH3BUDDHA
  • Like 3

Share this post


Link to post
Share on other sites

https://www.dispatch.com/business/20200129/wexner-may-depart-as-l-brands-ceo-sell-victoriarsquos-secret

 

This could send shock waves through the Columbus business community. It looks like Victoria's Secret will be sold off. Hopefully, whoever ends up purchasing the company keeps the headquarters in Columbus - similar to when Golden Gate Capital took a controlling stake in Express a few years ago. As Wexner departs his empire, it will be critical that whoever takes the reins as a vested interest in Central Ohio. They could easily take the company to more fashion-forward cities such as NYC and LA pretty easily.

  • Like 1

Share this post


Link to post
Share on other sites

^ A bit more about this from Business First.  A link to the Wall Street Journal report that broke this news is at the article link below:

 

Wexner in discussions to step away from L Brands, possibly sell Victoria's Secret, according to report

 

L Brands Inc. CEO Les Wexner is in discussions to step aside from his retail empire and is exploring options for Victoria's Secret, the Wall Street Journal is reporting this morning.  The newspaper, which cites "people familiar with the matter," said discussions are ongoing and could result in a full or partial sale of Victoria’s Secret.

( . . . )

L Brands reported net sales of $3.906 billion for the nine weeks ending Jan. 4, compared with $4.072 billion during the same stretch in the 2018 holiday season.  Comparable sales at Victoria's Secret dropped 12%, while Bath & Body Works rose 9%, leading to an overall 3% increase in sales at stores open at least a year.  For the full year, Victoria's Secret same-store sales were down 8% while Bath & Body Works went up 9%, translating to an overall 2% decrease in same-store sales for the year.  L Brands' overall sales were down to $12.113 billion compared with $12.457 billion the previous year.

 

Wexner is 82 years old and has run the business for nearly 60 years.  He could continue in his role as chairman, one of the people told the Wall Street Journal.

 

MORE:  https://www.bizjournals.com/columbus/news/2020/01/29/wexner-in-discussions-to-step-away-from-l-brands.html

Share this post


Link to post
Share on other sites
On 1/29/2020 at 10:30 AM, TH3BUDDHA said:

Columbus one of two choices for $5B cloud tech company headquarters

 

Swiss-based Veeam Software Corp. has narrowed its choice for a new headquarters to its two largest U.S. offices in Columbus and suburban Atlanta, its CEO said.

 

Each office has more than 300 employees, making up about half Veeam's U.S. workforce. CEO Bill Largent is in Columbus and CFO Chuck Garner is in Alpharetta. Both regions offer a wealth of college graduates for recruiting, Largent said.

...

Insight Partners, a New York City venture capital and private equity firm that specializes in software, announced this month it's acquiring Veeam for $5 billion and moving headquarters away from Baar, Switzerland.

 

More here: https://www.bizjournals.com/columbus/news/2020/01/29/exclusive-columbus-one-of-two-choices-for-5b-cloud.html?iana=hpmvp_colum_news_headline

 

 

^ This would be another great tech company get for Columbus.  A bit like Klarna - who located their U.S. HQ in the Short North - but possibly with more employees.

 

Business First had another story about Veeam looking at Columbus for a new HQ earlier this month behind a paywall.  It sounds like there are a number of ties to Columbus that could help us land them:

  • Until now Veeam's U.S. head office has been at 8800 Lyra Drive in the Polaris area.
  • William Largent, resuming his former post as CEO, is a graduate of Franklin University and Northland High School, and owns a house in Delaware County.
  • Veeam co-founders Ratmir Timashev and Andrei Baronov have Central Ohio ties too.  Timashev is an Ohio State University graduate and Baronov founded Aelita Software in Dublin (which Insight also invested in).  They both left about a year after Quest Software acquired Aelita in 2004, founding Veeam in 2006.

https://www.bizjournals.com/columbus/news/2020/01/10/could-columbus-land-a-5b-tech-company-a-swiss.html

  • Like 2

Share this post


Link to post
Share on other sites

I read somewhere that the biggest clue for where a company will locate is where the CEO lives...

Share this post


Link to post
Share on other sites
On 1/29/2020 at 5:31 PM, Columbo said:

^ A bit more about this from Business First.  A link to the Wall Street Journal report that broke this news is at the article link below:

 

Wexner in discussions to step away from L Brands, possibly sell Victoria's Secret, according to report

 

L Brands Inc. CEO Les Wexner is in discussions to step aside from his retail empire and is exploring options for Victoria's Secret, the Wall Street Journal is reporting this morning.  The newspaper, which cites "people familiar with the matter," said discussions are ongoing and could result in a full or partial sale of Victoria’s Secret.

( . . . )

L Brands reported net sales of $3.906 billion for the nine weeks ending Jan. 4, compared with $4.072 billion during the same stretch in the 2018 holiday season.  Comparable sales at Victoria's Secret dropped 12%, while Bath & Body Works rose 9%, leading to an overall 3% increase in sales at stores open at least a year.  For the full year, Victoria's Secret same-store sales were down 8% while Bath & Body Works went up 9%, translating to an overall 2% decrease in same-store sales for the year.  L Brands' overall sales were down to $12.113 billion compared with $12.457 billion the previous year.

 

Wexner is 82 years old and has run the business for nearly 60 years.  He could continue in his role as chairman, one of the people told the Wall Street Journal.

 

MORE:  https://www.bizjournals.com/columbus/news/2020/01/29/wexner-in-discussions-to-step-away-from-l-brands.html

This is a huge thing, and could be bad for Columbus. I'm sure if any of you know anyone that works there, you've heard this is happening pretty fast.

Share this post


Link to post
Share on other sites
4 minutes ago, CMHOhio said:

Hopefully the news of Macy's closing their Cincinnati headquarters isn't a harbinger of things to come with L Brands and Victoria's Secret:

 

https://www.bizjournals.com/columbus/news/2020/02/04/macys-closing-cincinnati-headquarters.html

Time will tell, but I definitely see VS getting sold off, it's under performing and it's reputation/image has become a liability and hassle in today's PC business, #metoo, etc.......climate.  As for L Brands, I don't see this going anywhere, it's staying.  I think the coming year(s) will be a time of transformation for the whole company though with Wexner bowing out.  I mean, it's not like this is all that ground breaking, he's the oldest CEO of a fortune 500 company, this was inevitable, so there's going to be adjustments and re-alignments with new leadership.  I'd like to see him focus more on his philanthropy/legacy projects in his "retirement" and final years, even more so than he already has done.  He's got the money to get things done, and a love for Columbus/central Ohio like no other.  I mean he is the richest guy in Ohio haha

  • Like 3

Share this post


Link to post
Share on other sites
22 hours ago, cbussoccer said:

Wow....that sucks for Cincinnati. 

Fortunately most of the jobs will be moving to a corporate office in a suburb of Cincy instead of being terminated or lost to NYC. The Mason call center will also be adding hundreds of new jobs due to the Tempe Arizona location closing. I think the biggest blow is losing a Fortune 500 headquarter status even though it really hasn’t been the true headquarters for a number of years due to all of the higher ups being located outside of Cincy. 

Share this post


Link to post
Share on other sites
6 minutes ago, Ucgrad2015 said:

Fortunately most of the jobs will be moving to a corporate office in a suburb of Cincy instead of being terminated or lost to NYC. The Mason call center will also be adding hundreds of new jobs due to the Tempe Arizona location closing. I think the biggest blow is losing a Fortune 500 headquarter status even though it really hasn’t been the true headquarters for a number of years due to all of the higher ups being located outside of Cincy. 

 

Is there a source for the number of corporate jobs being cut vs. corporate jobs moving to NYC vs. corporate jobs moving to the suburbs? I haven't seen any specifics in the few articles I've read. All I've seen is that they are closing the downtown HQ which housed over 500 employees. 

 

While adding call center jobs is certainly not a bad thing, I would never want to trade corporate jobs for call center jobs. That's a big loss. 

 

Losing that Fortune 500 HQ status is definitely a big blow from a city branding perspective, especially when the company is as recognizable as Macy's. It's certainly been a while since Cincinnati was the true HQ of the company, but that fact was always swept under the rug when Cincinnati was claiming it as their own, and I don't blame them. 

 

Anytime a company cuts 2,000 workers 100 stores, it doesn't bode well for their future. Department stores have been struggling for a while now and Macy's is certainly fighting an uphill battle. Hopefully, for the good of their employees, they can figure it out. I also hope that very few of the 500 HQ employees in Cincinnati actually end up losing their job. Losing your job sucks and I would never wish that upon anyone. 

Share this post


Link to post
Share on other sites

Columbus' newest public company makes its stock market debut

 

Central Ohio added its 28th publicly traded company Monday as Vertiv Holdings Co. debuted on the New York Stock Exchange.  Shares of the data center and IT infrastructure spinout from Emerson Electric Co. were trading around $13 by midday under the ticker VRT, according to a stock profile.

 

Columbus-based Vertiv went public by merging into GS Acquisition Holdings Corp., a holding company created by an affiliate of Goldman Sachs Group Inc. and David Cote, former CEO and executive chairman of Honeywell.  Cote becomes executive chairman.

 

Vertiv sells IT infrastructure offerings for data centers, communication networks and other large-scale IT facilities.  Acquisitions last year added power distribution units and evaporative cooling systems for the racks of servers in data centers.  Customers include AT&T, Amazon Web Services, IBM and Verizon.

 

MORE:  https://www.bizjournals.com/columbus/news/2020/02/10/columbus-newest-public-company-makes-its-stock.html

Share this post


Link to post
Share on other sites

Amazon opens its latest Central Ohio fulfillment center

 

Amazon.com Inc. is up and running at its latest fulfillment center in Central Ohio.  The e-commerce giant officially opened its West Jefferson fulfillment center, dubbed CMH4, on Feb. 9.  The center will be one of the largest employers in Madison County, promising 1,500 picking jobs, and already has hired several hundred workers.  It's located at 1550 W. Main Street in the Park 70 at West Jefferson development.

 

Duke Realty developed the 855,000-square-foot building which Stag Industrial bought for $95.5 million, or $112 per square foot, last June.  That deal was one of the largest commercial real estate transactions in the market in 2019.

 

Amazon's two main sorting centers in the area are in Etna and Obetz, and they combine for 4,500 jobs, well above the company's initial commitment of 2,000 in Central Ohio.  Amazon invested $200 million to open them.  The company also operates a third, smaller warehouse center in the region. ... Those are in addition to data centers built in Central Ohio by its technology affiliate, Amazon Web Services.

 

MORE:  https://www.bizjournals.com/columbus/news/2020/02/11/amazon-opens-its-latestcentral-ohio-fulfillment.html

  • Like 1

Share this post


Link to post
Share on other sites
3 hours ago, Columbo said:

Columbus' newest public company makes its stock market debut

 

Central Ohio added its 28th publicly traded company Monday as Vertiv Holdings Co. debuted on the New York Stock Exchange.  Shares of the data center and IT infrastructure spinout from Emerson Electric Co. were trading around $13 by midday under the ticker VRT, according to a stock profile.

 

Columbus-based Vertiv went public by merging into GS Acquisition Holdings Corp., a holding company created by an affiliate of Goldman Sachs Group Inc. and David Cote, former CEO and executive chairman of Honeywell.  Cote becomes executive chairman.

 

Vertiv sells IT infrastructure offerings for data centers, communication networks and other large-scale IT facilities.  Acquisitions last year added power distribution units and evaporative cooling systems for the racks of servers in data centers.  Customers include AT&T, Amazon Web Services, IBM and Verizon.

 

MORE:  https://www.bizjournals.com/columbus/news/2020/02/10/columbus-newest-public-company-makes-its-stock.html

 

More about Vertiv from Business First - unfortunately this one is only fully readable for subscribers.  But here's a brief synopsis:

 

Data center construction boom has this Columbus IT supplier 'jazzed' as it goes public

 

Central Ohio's newest publicly traded company actually has been here more than five decades, but the rapid pace of data center construction in the region and globally has it "jazzed" about its future.  Vertiv Holdings Co., based in far north Columbus, started trading Monday on the New York Stock Exchange.  Founded as Liebert Corp. in 1965, the IT infrastructure supplier traded publicly for six years until St. Louis-based Emerson Electric Co. acquired it in 1987, spinning it back out four years ago.

 

The company's roots were the equipment that protects computers from heat and power surges.  Today it makes a wide range of cooling and other IT infrastructure offerings for data centers, communication networks and other large computing facilities. ... Amazon, Google, Facebook, local Fortune 500 companies and a number of independent cloud computing providers are spending billions building data centers in the Central Ohio region, largely clustered along the northern outerbelt, especially New Albany.

 

Besides its headquarters at 1050 Dearborn Drive off the northern rim of I-270, Vertiv has manufacturing and distribution facilities in Delaware and southern Ohio's Ironton, plus a Westerville sales and service office.  About 1,260 of more than 19,000 employees worldwide are in Central Ohio.

 

MORE:  https://www.bizjournals.com/columbus/news/2020/02/11/data-center-construction-boom-has-thiscolumbus-it.html

Share this post


Link to post
Share on other sites

And speaking of Central Ohio's data center construction boom...

49524096921_e0b7482ce1_w_d.jpg

 

Facebook announces fourth, fifth buildings at New Albany data farm

 

Facebook Inc. announced it will build its fourth and fifth data centers in New Albany, bringing total investment to more than $1 billion, as digital traffic started flowing through the first one.  The full campus would create about 150 jobs, between technical, engineering, administrative and vendor positions.  And each building at peak construction has some 1,200 workers on site, for a total of $78 million in wages, the company said.

 

New Albany has landed a trifecta of Silicon Valley data farms over the past 2 1/2 years: Facebook, Amazon Web Services and Google Inc. – all in various stages of construction and possible expansion.  New Albany's IT cluster in its business park has attracted nearly $4 billion in private investment, including data centers for AEP Ohio, Nationwide and Discover Financial.

 

The first two buildings – each 450,000 square feet – are connected by 75,000 square feet of administrative offices in an "H" shape.  A third is under construction.  When the fourth and fifth are complete, the buildings will total 2.5 million square feet.

 

MORE:  https://www.bizjournals.com/columbus/news/2020/02/07/facebook-announces-fourth-fifth-buildings-at-new.html

Share this post


Link to post
Share on other sites

Victoria's Secret is being sold off to Sycamore Partners, a New York City-based private equity firm:

 

https://www.dispatch.com/business/20200220/l-brands-to-sell-victoriarsquos-secret-to-private-equity-firm

 

Overall, not unexpected and likely not the worst thing to happen given the circumstances. Both companies have already done business together with Wexner's first retail venture, The Limited. L Brands will maintain a minority ownership in the company (45%). 

Share this post


Link to post
Share on other sites
3 hours ago, CMHOhio said:

Victoria's Secret is being sold off to Sycamore Partners, a New York City-based private equity firm:

 

https://www.dispatch.com/business/20200220/l-brands-to-sell-victoriarsquos-secret-to-private-equity-firm

 

Overall, not unexpected and likely not the worst thing to happen given the circumstances. Both companies have already done business together with Wexner's first retail venture, The Limited. L Brands will maintain a minority ownership in the company (45%). 

 

More about the buyer of Victoria's Secret from Business First:

 

Who is Sycamore Partners? Meet the buyer of Victoria's Secret

 

Victoria's Secret's future owner has a track record of turning around struggling companies and a history of interest in Central Ohio's retail scene.  Manhattan-based Sycamore Partners LLC is a private equity firm with $10 billion in assets under management and a history of investing in consumer and retail brands, among them Belk, Coldwater Creek, Hot Topic, Staples, Talbots and Torrid.

 

Sycamore will pay $525 million for a 55% stake in Victoria's Secret.  The chain has a "total enterprise value" of $1.1 billion, the companies said.  Wexner is also stepping down from the CEO role at L Brands alongside the sale.

 

Sycamore Partners is familiar with the Columbus retail industry, and L Brands specifically.  It acquired the intellectual property of Limited Stores LLC for a reported $25.75 million after the former Columbus-based L Brands spinout declared bankruptcy at the start of 2017.  The firm also courted another L Brands spinout, Express Inc., from 2014 to 2015.  Sycamore went so far as to grow its stake in the company to 9.9% before ending its purchase plan. 

 

MORE:  https://www.bizjournals.com/columbus/news/2020/02/20/who-is-sycamore-partners-meet-the-buyer-of.html

Share this post


Link to post
Share on other sites

^ Just as big of a headline as the Victoria's Secret brand being sold is the news that Les Wexner - 82-year-old company founder of L Brands - will be stepping down as CEO and chairman of the company.  Below is are exact details from the Business First article at the link:

 

"Wexner will be stepping down from his role as CEO and chairman of the company and will take on a much more passive role as chairman emeritus.  In his place, Bath & Body Works COO Andrew Meslow has been promoted to CEO of Bath & Body Works and will become CEO of L Brands once the Victoria's Secret deal closes."

 

https://www.bizjournals.com/columbus/news/2020/02/20/les-wexner-now-is-the-right-time-to-pass-the-reins.html

Share this post


Link to post
Share on other sites
9 minutes ago, Columbo said:

^ Just as big of a headline as the Victoria's Secret brand being sold is the news that Les Wexner - 82-year-old company founder of L Brands - will be stepping down as CEO and chairman of the company.  Below is are exact details from the Business First article at the link:

 

"Wexner will be stepping down from his role as CEO and chairman of the company and will take on a much more passive role as chairman emeritus.  In his place, Bath & Body Works COO Andrew Meslow has been promoted to CEO of Bath & Body Works and will become CEO of L Brands once the Victoria's Secret deal closes."

 

https://www.bizjournals.com/columbus/news/2020/02/20/les-wexner-now-is-the-right-time-to-pass-the-reins.html

 

Indeed. It appears Mr. Meslow has been with the company for quite some time and currently resides in New Albany. Wexner staying as Chairman Emeritus can also be taken as a good sign of their continuing commitment to the region.

  • Like 1

Share this post


Link to post
Share on other sites

^^ That previous Business First article I posted was more about the farewell e-mail Wexner sent to all L Brands employees.  Below is the main Business First article about the Victoria's Secret sale and Wexner stepping down from the L Brands CEO position:

 

Les Wexner stepping down from L Brands, selling majority stake in Victoria's Secret

 

https://www.bizjournals.com/columbus/news/2020/02/20/les-wexner-stepping-down-from-l-brands-selling.html

Share this post


Link to post
Share on other sites

Anchor Hocking parent company moving out of downtown Columbus 

 

The Oneida Group is on the move again.  The Anchor Hocking parent company, which markets tabletop and food preparation products, is moving its headquarters to 13,000 square feet of space in the 1600 Dublin Road building - located about two miles northwest of downtown.  The company has been based at 200 Civic Center Drive in Downtown Columbus since 2017, making this its second move in three years.  It was previously headquartered in Lancaster.

 

The Oneida Group is one of the largest employers in Central Ohio with 665 employees across the region, according to Columbus Business First research.  Thirty-six corporate employees are making the move into the new office space.

 

With this lease, the 211,143-square-foot office complex at 1600 Dublin has landed three headquarters in four months.  TeamDynamix Solutions LLC, which makes subscription project-management software for universities, recently moved its headquarters to 10,000 square feet of space there and Zipline Logistics will move to 16,000 square feet in that building in December.

 

MORE:  https://www.bizjournals.com/columbus/news/2020/03/10/anchor-hocking-parent-company-moving-out-of.html

Share this post


Link to post
Share on other sites

L Brands names Cleveland woman to replace Wexner as chairman

 

L Brands, the owner of Victoria’s Secret, has picked a woman to lead its board as the company seeks to move past allegations of misconduct and a misogynistic culture.  Sarah Nash, currently the CEO and chairwoman of Cleveland-based Novagard Solutions, will take over for founder Leslie H. Wexner, the retailer said Thursday.

 

Wexner announced he was giving up the seat last month after New York private equity firm Sycamore Partners bought a 55% stake in the lingerie company from L Brands for $525 million.

 

Nash joined the Columbus-based retailer’s board in 2019, the same year the company was hit by scandals and a deepening sales slump that has taken a bite out of its shares.  She will take over for Wexner when the sale closes, which should be this spring.

 

MORE:  https://www.thisweeknews.com/business/20200312/l-brands-names-cleveland-woman-to-replace-wexner-as-chairman

Share this post


Link to post
Share on other sites

Root Insurance recruits new HR chief from Facebook – just in time for pandemic response

 

Starting a new job is a huge change. – Then there’s starting a new job remotely from 2,500 miles away. – Then there’s starting a job remotely from 2,500 miles away under state stay-home orders during a pandemic and the job is to lead the transition of more than 850 employees to remote work.

 

Annette Reavis was recruited after 10 years at Facebook for the newly created role of chief people officer at fast-growing Columbus insurance startup Root Inc.

 

Reavis started March 16, days ahead of Ohio’s order prompting adoption of work-from-home, and after helping direct the shift at the 40,000-person social network.  She has an apartment in Grandview Heights, but can't yet leave San Jose, as California is under a shelter-in-place order.

 

MORE:  https://www.bizjournals.com/columbus/news/2020/04/08/root-insurance-recruits-new-hr-chief-from-facebook.html

Share this post


Link to post
Share on other sites

As the coronavirus closes down businesses everywhere in Central Ohio - there is one type of business still operating:  warehousing operations for e-commerce

 

Below is a Business First article link from October 2019 about the boom in modern warehouse construction in Central Ohio.  I never posted it previously because it's one of those subscriber-only articles that you can't read without a subscription.  But it seems particularly relevant now.

 

Huge modern warehouses are popping up all over Central Ohio - especially in three clusters where Amazon fulfillment centers were built - west of Columbus along I-70 in Madison County; east of Columbus along I-70 in Licking County; and south of Columbus at Rickenbacker.  Additional e-commerce operations include businesses like Walmart, Target, Macy's, Kohl's and Medline.

 

According to the article, in Fall 2019, there was 8.9 million square feet of warehouse space under construction across Central Ohio - which is the largest development pipeline at any time in the region.  The Fall 2019 market-wide vacancy was down to 4.6 percent and modern bulk warehouses had a record low vacancy of 2.3 percent.

 

Warehouse development hits record high in Central Ohio: 'Companies want to buy in': 

https://www.bizjournals.com/columbus/news/2019/10/04/warehouse-development-hits-record-high-in-central.html

  • Like 1

Share this post


Link to post
Share on other sites
On 2/20/2020 at 8:50 AM, CMHOhio said:

Victoria's Secret is being sold off to Sycamore Partners, a New York City-based private equity firm:

 

https://www.dispatch.com/business/20200220/l-brands-to-sell-victoriarsquos-secret-to-private-equity-firm

 

Overall, not unexpected and likely not the worst thing to happen given the circumstances. Both companies have already done business together with Wexner's first retail venture, The Limited. L Brands will maintain a minority ownership in the company (45%). 

 

This deal to sell off 55% of Victoria's Secret to Sycamore Partners got done just before the coronavirus hit hard.  But because of the stores shutting down due to the coronavirus - it might not be a "done deal" after all.  Below is a report from CNBC:

 


Private equity firm Sycamore is trying to get out of deal to take over Victoria’s Secret

 

Private equity firm Sycamore Partners is looking to back out of its deal to take over Victoria’s Secret from L Brands, according to a lawsuit filed in a Delaware court on Wednesday. 

 

The deal for Victoria’s Secret to be taken private was reached in February, just weeks before the coronavirus pandemic started hammering the U.S. economy and forcing the closure of thousands of retailers’ stores.  It ceded a 55% share to Sycamore for $525 million, allowing L Brands to focus on running its better-performing store, Bath & Body Works.

 

Sycamore said in the filing that L Brands violated the transaction when it closed its stores and skipped rent payments in April.  Sycamore is now seeking the court’s approval to break the deal, according to the filing.

 

The terms of the transaction allowed for the possibility of a pandemic triggering a “material adverse effect” clause, which are typically included in deals to allow a buyer an opportunity to renegotiate should extraordinary events impact business.

 

MORE:  https://www.cnbc.com/2020/04/22/sycamore-partners-tries-to-get-out-of-deal-to-take-over-victorias-secret.html

Share this post


Link to post
Share on other sites

Victoria’s Secret dispute could set precedent in legal, business worlds

 

A New York company’s effort to back out of a deal to buy a majority stake in Victoria’s Secret because of the coronavirus outbreak will be closely watched in the legal and business worlds.  Experts say the case could set a precedent - since the dispute could set the stage for similar battles - as companies’ operations and value plummet during the coronavirus pandemic.

 

MORE:  https://www.thisweeknews.com/business/20200424/victoriarsquos-secret-dispute-could-set-precedent-in-legal-business-worlds

Share this post


Link to post
Share on other sites
On 5/3/2020 at 8:44 PM, Columbo said:

Victoria’s Secret dispute could set precedent in legal, business worlds

 

A New York company’s effort to back out of a deal to buy a majority stake in Victoria’s Secret because of the coronavirus outbreak will be closely watched in the legal and business worlds.  Experts say the case could set a precedent - since the dispute could set the stage for similar battles - as companies’ operations and value plummet during the coronavirus pandemic.

 

MORE:  https://www.thisweeknews.com/business/20200424/victoriarsquos-secret-dispute-could-set-precedent-in-legal-business-worlds

 

Or just call the whole thing off:

 

L Brands calls off Victoria's Secret sale, plans to spin off brand instead:  https://www.bizjournals.com/columbus/news/2020/05/04/l-brands-calls-of-victorias-secret-sale-plans-to.html

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...