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Cleveland: Downtown Office Development News

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http://www.cleveland.com/tribe/index.ssf/2016/01/mark_shapiro_cleveland_indians.html

 

Was reading an interview with Mark Shapiro, former Cleveland Indians President and current Toronto Blue Jays pres, and found his answer to Indians attendance concerns interesting:

 

"Colloquially speaking, you've got to get past looking at the team through the lens of the mid-'90s. No football team. Not having won for 40 years. New ballpark multiplier. Not a competitive basketball team. And 100,000 more people working downtown."

 

Did Cleveland really lose half of its downtown workforce population since the late 1990s, or is this an exaggeration?

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An exaggeration.


"Fascism begins the moment a ruling class, fearing the people may use their political democracy to gain economic democracy, begins to destroy political democracy in order to retain its power of exploitation and special privilege." -- Tommy Douglas, Scottish-born Canadian Baptist minister and the seventh Premier of Saskatchewan

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All those factors were true to one degree or another, but the biggest driver of attendance IMO was that the mid-90s Infians were the most exciting team MLB has seen in my time. No game was out of reach with that offense

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And what does ' campus ' refer to?    Like Eaton in the suburbs.

 

It doesn't mean anything dense, and usually means multiple buildings.  More Progressive than Eaton.

 

Basically.  I think they are being honest when they say they're weighing all options.  Also don't be surprised if the consolidation includes a significant chunk of the Toledo office.  The Columbus sales consolidation, from what I understand, was driven by wanting to have a presence, signage, next to the statehouse.

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Wasn't Medical Mutual originally supposed to be the tenant in One Cleveland Center (the building that looks like a chisel)?  And the outcry over the cost made them back down?

 

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Wasn't Medical Mutual originally supposed to be the tenant in One Cleveland Center (the building that looks like a chisel)?  And the outcry over the cost made them back down?

 

 

Sounds familiar. Hopefully they've changed their tune over the past 33 years about moving into a new downtown skyscraper!

 

If not, maybe they could take over a rehabbed Justice Center courts tower after the county/city moves to a new complex...


"Fascism begins the moment a ruling class, fearing the people may use their political democracy to gain economic democracy, begins to destroy political democracy in order to retain its power of exploitation and special privilege." -- Tommy Douglas, Scottish-born Canadian Baptist minister and the seventh Premier of Saskatchewan

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Investment property sales in Northeast Ohio rose 12% in 2015

January 24, 2016 UPDATED 2 DAYS AGO

By STAN BULLARD

 

Commercial property investment sales expert Alec Pacella knew sales of office buildings in Northeast Ohio had to rebound at some point. But even he is surprised by the category’s 2015 surge.

 

“The investment market for office has been lagging the last few years, but I didn’t think it would account for a third of total volume in 2015,” said Pacella, managing partner of the Beachwood-based NAI Daus real estate brokerage, as he released his annual survey of commercial investment sales activity in Northeast Ohio exceeding $1 million.

 

MORE:

http://www.crainscleveland.com/article/20160124/NEWS/160129917/investment-property-sales-in-northeast-ohio-rose-12-in-2015


"Fascism begins the moment a ruling class, fearing the people may use their political democracy to gain economic democracy, begins to destroy political democracy in order to retain its power of exploitation and special privilege." -- Tommy Douglas, Scottish-born Canadian Baptist minister and the seventh Premier of Saskatchewan

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TeamWork Online sets up shop downtown, celebrates several milestones

January 28, 2016

KEVIN KLEPS 

SPORTS BUSINESS

 

TeamWork Online might not be a household name in Northeast Ohio, but the matchmaking service for teams and potential employees is a heavyweight in professional sports.

 

This year, the company is celebrating a few milestones.

 

TeamWork, which describes itself as a “prominent mobile recruiting and networking platform,” was founded by Buffy Filippell, who in 1978 became the first female sports agent at marketing giant IMG. Fifteen years ago, Filippell was looking for a digital version of her executive search firm, TeamWork Consulting.

 

TeamWork Online was born, and the company is a huge local success story.

 

TeamWork, which had been headquartered in Shaker Heights, recently opened a spacious office in the Caxton Building at 812 Huron Road. That’s about a four-minute walk from Quicken Loans Arena, which houses one of the hundred-plus big-time sports teams TeamWork counts as a client.

 

MORE:

http://www.crainscleveland.com/article/20160128/BLOGS06/160129809/teamwork-online-sets-up-shop-downtown-celebrates-several-milestones


"Fascism begins the moment a ruling class, fearing the people may use their political democracy to gain economic democracy, begins to destroy political democracy in order to retain its power of exploitation and special privilege." -- Tommy Douglas, Scottish-born Canadian Baptist minister and the seventh Premier of Saskatchewan

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Accenture leaving Public Square, will occupy former Sammy's restaurant headquarters

January 31, 2016 UPDATED AN HOUR AGO

By STAN BULLARD   

 

Accenture, a global professional services firm, plans to trade its mainstream address on Cleveland’s Public Square for the former home of Sammy’s restaurant and City Life catering overlooking the city’s Flats.

 

About 200 workers based at Accenture’s Cleveland office at 200 Public Square will begin working this spring at 1400 West 10th St. after the Dublin, Ireland-based publicly traded company leased the top floor of the three-story building. The building is being converted to a multitenant office by an investor group led by Scheer Real Estate Group of Chagrin Falls. It offers a loft-style environment among timber beams with expansive views of the Cuyahoga River.

 

MORE:

http://www.crainscleveland.com/article/20160131/NEWS/160129762/accenture-leaving-public-square-will-occupy-former-sammys-restaurant

 


"Fascism begins the moment a ruling class, fearing the people may use their political democracy to gain economic democracy, begins to destroy political democracy in order to retain its power of exploitation and special privilege." -- Tommy Douglas, Scottish-born Canadian Baptist minister and the seventh Premier of Saskatchewan

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A very interesting coincidence indeed...

 

Medical Mutual will move Strongsville office, as insurer weighs real estate needs

By Michelle Jarboe, The Plain Dealer

on February 02, 2016 at 2:54 PM, updated February 02, 2016 at 4:59 PM

 

STRONGSVILLE, Ohio -- Medical Mutual of Ohio plans to move its Strongsville facility into a different building later this year. But the insurer and nearly 400 employees are staying put in southwest Cuyahoga County - for now.

 

The Cleveland-based company announced Tuesday that it will leave its current space, at 17800 Royalton Road, for new digs less than five miles away at West Sprague Road and Mohawk Drive before August.

 

"We're extremely pleased that we can remain in Strongsville," Rick Chiricosta, Medical Mutual's chairman, president and chief executive officer said in an emailed statement. "The city has been a great partner to us and our employees."

 

The new lease carries a four-year term, putting its expiration date close to the end of Medical Mutual's headquarters lease in downtown Cleveland. That's no coincidence, as the state's oldest health insurer is evaluating its future office-space needs.

 

MORE:

http://www.cleveland.com/business/index.ssf/2016/02/medical_mutual_will_move_stron.html#incart_river_index


"Fascism begins the moment a ruling class, fearing the people may use their political democracy to gain economic democracy, begins to destroy political democracy in order to retain its power of exploitation and special privilege." -- Tommy Douglas, Scottish-born Canadian Baptist minister and the seventh Premier of Saskatchewan

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I'd say that's a clear indication they'll be consolodating the offices like they did in central Ohio. Hopefully this is a prelude to 400 more jobs moving downtown in a few years :D

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Surprised no one (sorry Steve -- you posted as I was still typing this) here has chimed in on the above story. It's apparent Medical Mutual will consolidate it's NE Ohio employees in a single location in four years. It won't be their current building on East 9th after all. It's too small to accommodate much more than what's there now. So the question is, where?

 

Four years isn't a lot of time. Two years for construction. One year or more for design, city approvals, procurement, etc. So that leaves maybe six months to decide where to build....

 

I know I've got an obsession for the Jacobs lot on Public Square. But Medical Mutual consolidated their Central Ohio employees in downtown Columbus in a high-profile location by the State House. If that approach is an indication for their larger NE Ohio presence, the Jacobs lot would be consistent with what they did in Columbus.


"Fascism begins the moment a ruling class, fearing the people may use their political democracy to gain economic democracy, begins to destroy political democracy in order to retain its power of exploitation and special privilege." -- Tommy Douglas, Scottish-born Canadian Baptist minister and the seventh Premier of Saskatchewan

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My first thought was that they might be going in Nucleus, but when I think about it there's probably not enough office space for MM and the current commitments. And if it were going to be any currently built buildings (isn't there a bunch of empty space in Key Tower atm since Key downsized their space), why move these offices to this short term lease? I don't recall Weston having a major office component, but I'm sure that could always be added at this stage, and we'd probably be hearing more of the proposed office building at FEB if that was on their radar. I may be biased towards the Jacobs eyesore, but I think that may be the most probable locations for a new MM HQ.

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Medical Mutual's space needs, if they consolidate their NE Ohio employees in one building, are probably close to 1 million square feet. For comparison, Key Tower is 1.3 million square feet.

 

Eaton Corp.'s big campus in Highland Hills is 580,000 square feet. A Medical Mutual suburban campus could be almost twice as large.

 

Edit: so the only proposed building that's big enough and could accommodate MM is Weston's proposed 37-story building that could be residential or offices on the SE corner of the superblock. Ironically, that's right next to the Jacobs lot.

 

Edit2: Geis' multi-building conceptual development near Burke might also be big enough. Maybe.


"Fascism begins the moment a ruling class, fearing the people may use their political democracy to gain economic democracy, begins to destroy political democracy in order to retain its power of exploitation and special privilege." -- Tommy Douglas, Scottish-born Canadian Baptist minister and the seventh Premier of Saskatchewan

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Medical Mutual's space needs, if they consolidate their NE Ohio employees in one building, are probably close to 1 million square feet. For comparison, Key Tower is 1.3 million square feet.

 

KJP, how are you getting up to 1 million?  Their new short term space in Strongsville will house 400 people in 89k sf. With that same sf/employee, consolidating all 1,700 NEO workers would require less than 400k sf of leasable space. Even if the downtown contingent required 50% more sf/employee for some reason (auditorium? more conference rooms?), it's still much less than 1M, no?

 

I hope all this is good news, but the risk of a new suburban campus will worry me somewhat till we hear more.

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Is there any effective difference in the demand for square footage when going from a chopped up building like the Rose to a more modern floorplate format?

 

^Was wondering the same. Rounding up Downtown and Strongsville buildings they get to 500,000 sqft.

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I see where my math went wrong. I based it on this portion from the recent PD article...

 

Chaney acknowledged that the company, which occupies 381,000 square feet downtown, is evaluating its options for future headquarters space. Medical Mutual employs more than 1,000 people downtown and nearly 670 at other Northeast Ohio sites, including a Strongsville office, a Beachwood data center and a facility in Copley. Its total workforce is close to 2,400 employees.

 

"We can stay where we are," Chaney said. "We can go rent or buy someplace else. Or we can build a building. And, right now, they're all weighted equally."

 

SOURCE: http://www.cleveland.com/business/index.ssf/2016/01/medical_mutual_hq_mortgage_in.html

 

So we're looking at perhaps 381 square feet per employee based on their current downtown usage. Where I went wrong was assuming that 2,400-employee figure was for NE Ohio. Instead it's company-wide. So I took the 381 square feet and multiplied it by all of the 2,400 employees to come up with 914,400 square feet. Wrong.

 

Rather....

 

If all 1,700 NE Ohio employees are consolidated into one building, it could be about 647,700 square feet. With floorplates averaging 30,000 square feet, that's 21-22 stories. With floorplates of 25,000 square feet, that's 26 stories. With floorplates of 20,000 square feet, that's 32-33 stores (none of these include parking levels within a new tower). If they need more space (or less) for a modern office concept, it could require 700,000 square feet or more (or perhaps 600,000 square feet or less). And if they have plans for expansion, add a contingency for more office space.


"Fascism begins the moment a ruling class, fearing the people may use their political democracy to gain economic democracy, begins to destroy political democracy in order to retain its power of exploitation and special privilege." -- Tommy Douglas, Scottish-born Canadian Baptist minister and the seventh Premier of Saskatchewan

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BTW, still lots of vacant land left at Chagrin Highlands, including a very high-profile location at the SE quadrant of I-271 and Harvard, across from the new Pinecrest development. But in other major cities, companies in the suburbs are moving downtown. In Cleveland, however, we're still living in the 20th century....

 

24187836423_8aeac545da_b.jpg

 

 

Or perhaps something stunning like this 27-story Calgary tower (or can be a lot taller in a mixed-use building) but with Medical Mutual's name lit up and facing a redesigned and rejuvenated Public Square....

 

20130730_C9633_PHOTO_EN_29271-682x1024.jpg


"Fascism begins the moment a ruling class, fearing the people may use their political democracy to gain economic democracy, begins to destroy political democracy in order to retain its power of exploitation and special privilege." -- Tommy Douglas, Scottish-born Canadian Baptist minister and the seventh Premier of Saskatchewan

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I get the impression they are a cheerleader for Cleveland and downtown. Not sure where I am getting that from but hopefully I am correct and they continue/increase the momentum in the city center.

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An additional thought (as I used to live right across from that office) is it seems a lot of people use transit/get dropped off. Hopefully that plays into their site selection.

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BTW, still lots of vacant land left at Chagrin Highlands, including a very high-profile location at the SE quadrant of I-271 and Harvard, across from the new Pinecrest development. But in other major cities, companies in the suburbs are moving downtown. In Cleveland, however, we're still living in the 20th century....

20130730_C9633_PHOTO_EN_29271-682x1024.jpg

 

More specifically like the 1950s and 60s when freeways, strip development and suburban office campuses were the hot things.  As there any other city that has developed a suburban "city" as extensive as Crocker Park?  ... the only one that's comparable in my mind is Mizner Park in South Florida... The difference being that Mizner was begun in the 1920s IIRC and has grown over the decades; plus it's within Boca Raton, which has long been the free-standing, ritzy suburban city that's about 50 miles north of Miami... Crocker Park is unusual esp for a medium scale metro area like Greater Cleveland.  Chargin Highlands is a disjointed, sprawling mess imho.

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BTW, still lots of vacant land left at Chagrin Highlands, including a very high-profile location at the SE quadrant of I-271 and Harvard, across from the new Pinecrest development. But in other major cities, companies in the suburbs are moving downtown. In Cleveland, however, we're still living in the 20th century....

20130730_C9633_PHOTO_EN_29271-682x1024.jpg

 

More specifically like the 1950s and 60s when freeways, strip development and suburban office campuses were the hot things.  As there any other city that has developed a suburban "city" as extensive as Crocker Park?  ... the only one that's comparable in my mind is Mizner Park in South Florida... The difference being that Mizner was begun in the 1920s IIRC and has grown over the decades; plus it's within Boca Raton, which has long been the free-standing, ritzy suburban city that's about 50 miles north of Miami... Crocker Park is unusual esp for a medium scale metro area like Greater Cleveland.  Chargin Highlands is a disjointed, sprawling mess imho.

 

 

Easton down in Columbus is waaay bigger than Crocker Park. The caveat that while suburban in character the development is within the Columbus corporate limits.

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BTW, still lots of vacant land left at Chagrin Highlands, including a very high-profile location at the SE quadrant of I-271 and Harvard, across from the new Pinecrest development. But in other major cities, companies in the suburbs are moving downtown. In Cleveland, however, we're still living in the 20th century....

 

More specifically like the 1950s and 60s when freeways, strip development and suburban office campuses were the hot things.  As there any other city that has developed a suburban "city" as extensive as Crocker Park?  ... the only one that's comparable in my mind is Mizner Park in South Florida... The difference being that Mizner was begun in the 1920s IIRC and has grown over the decades; plus it's within Boca Raton, which has long been the free-standing, ritzy suburban city that's about 50 miles north of Miami... Crocker Park is unusual esp for a medium scale metro area like Greater Cleveland.  Chargin Highlands is a disjointed, sprawling mess imho.

To me, Crocker Park is more impressive because of the amount of residential included than the retail. One would expect more because of the amount of money around it. The development itself is pretty good although I would have liked a more urban Lakewood feel than a cul-de-sac. Mizner Park is only impressive because it's an extremely rich area. Residential surrounds it as opposed to being "included" and the urban feel of it is more out of necessity because of space restrictions in south Florida, especially near the beach. They both beat Eton etc by miles though.

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BTW, still lots of vacant land left at Chagrin Highlands, including a very high-profile location at the SE quadrant of I-271 and Harvard, across from the new Pinecrest development. But in other major cities, companies in the suburbs are moving downtown. In Cleveland, however, we're still living in the 20th century....

 

More specifically like the 1950s and 60s when freeways, strip development and suburban office campuses were the hot things.  As there any other city that has developed a suburban "city" as extensive as Crocker Park?  ... the only one that's comparable in my mind is Mizner Park in South Florida... The difference being that Mizner was begun in the 1920s IIRC and has grown over the decades; plus it's within Boca Raton, which has long been the free-standing, ritzy suburban city that's about 50 miles north of Miami... Crocker Park is unusual esp for a medium scale metro area like Greater Cleveland.  Chargin Highlands is a disjointed, sprawling mess imho.

To me, Crocker Park is more impressive because of the amount of residential included than the retail. One would expect more because of the amount of money around it. The development itself is pretty good although I would have liked a more urban Lakewood feel than a cul-de-sac. Mizner Park is only impressive because it's an extremely rich area. Residential surrounds it as opposed to being "included" and the urban feel of it is more out of necessity because of space restrictions in south Florida, especially near the beach. They both beat Eton etc by miles though.

 

There's still that cul de sac across the street from Crocker Park.  Earlierr in this thread or another, someone who works there has heard the word "campus" used a lot.

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BTW, still lots of vacant land left at Chagrin Highlands, including a very high-profile location at the SE quadrant of I-271 and Harvard, across from the new Pinecrest development. But in other major cities, companies in the suburbs are moving downtown. In Cleveland, however, we're still living in the 20th century....

 

A lot of that is because the city doesn't have it's schtuff together.  Therefore, there needs to be either a compelling business reason or a strong executive preference for being downtown.  Throw in Cleveland getting half the income taxes from Highlands companies while incurring 0% of the expenses.

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BTW, still lots of vacant land left at Chagrin Highlands, including a very high-profile location at the SE quadrant of I-271 and Harvard, across from the new Pinecrest development. But in other major cities, companies in the suburbs are moving downtown. In Cleveland, however, we're still living in the 20th century....

 

A lot of that is because the city doesn't have it's schtuff together.  Therefore, there needs to be either a compelling business reason or a strong executive preference for being downtown.  Throw in Cleveland getting half the income taxes from Highlands companies while incurring 0% of the expenses.

 

Actually, this quadrant already has something in the works, remember?

 

Chagrin Highlands could gain Drury hotel, restaurants, offices on 78-acre Orange site

http://www.cleveland.com/business/index.ssf/2015/12/chagrin_highlands_could_gain_d.html

 

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Thanks for reminding. Forgot about that.

 

A lot of that is because the city doesn't have it's schtuff together.  Therefore, there needs to be either a compelling business reason or a strong executive preference for being downtown.  Throw in Cleveland getting half the income taxes from Highlands companies while incurring 0% of the expenses.

 

The city's getting income taxes without spending anything? Sounds like the city's got it schtuff together to me!


"Fascism begins the moment a ruling class, fearing the people may use their political democracy to gain economic democracy, begins to destroy political democracy in order to retain its power of exploitation and special privilege." -- Tommy Douglas, Scottish-born Canadian Baptist minister and the seventh Premier of Saskatchewan

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Hopefully Medical Mutual's Columbus consolidation is a sign that their corporate culture prefers downtown offices.

 

+1

 

I would hope a new tower on Public Sq, or at least a downtown location in CLE is at the top of their list. It would seem to be keeping with MM's corporate culture of both seeking a highly visible presence in the urban core as well as being very civic-minded.

 

Here in CBUS, they not only consolidated their offices onto Capitol Sq, but also around that same time signed on (to the tune of $1.25M) as the presenting sponsor of our bike share. That system is focused on downtown and adjacent neighborhoods, and together the moves have increased their visibility in the community many-fold.

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"Fascism begins the moment a ruling class, fearing the people may use their political democracy to gain economic democracy, begins to destroy political democracy in order to retain its power of exploitation and special privilege." -- Tommy Douglas, Scottish-born Canadian Baptist minister and the seventh Premier of Saskatchewan

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^ Seems like they prefer a suburban-style campus anyway. It would be awesome if they somehow choose downtown Cleveland, but I highly highly doubt it will happen. I hope the City is at least making an effort to reach out to them, though. It couldn't hurt.

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Thanks for reminding. Forgot about that.

 

A lot of that is because the city doesn't have it's schtuff together.  Therefore, there needs to be either a compelling business reason or a strong executive preference for being downtown.  Throw in Cleveland getting half the income taxes from Highlands companies while incurring 0% of the expenses.

 

The city's getting income taxes without spending anything? Sounds like the city's got it schtuff together to me!

 

To get money, yes.  But not to attract new business.  There's also less incentive to compete when the target is likely to end up in Highlands.

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^ I still think the city would rather push to collect the full income tax, instead of just half if they were to move to Chagrin Highlands. If they don't, then they really don't have their schtuff together.

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^ I still think the city would rather push to collect the full income tax, instead of just half if they were to move to Chagrin Highlands. If they don't, then they really don't have their schtuff together.

 

Then they have to do things like expedite construction permitting, worry about infrastructure, etc....

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Cross-posted in the downtown residential news thread...

 

Downtown Cleveland transportation options attract residents, workers

WKYC staff  11:21 AM. EST February 03, 2016

 

CLEVELAND -- – Downtown Cleveland Alliance today released the Downtown Cleveland Market Update for the fourth quarter of 2015. This quarterly report reveals a comprehensive overview of recent developments in Downtown Cleveland housing, office, retail, hospitality and transportation trends.

 

As Downtown Cleveland continues to grow its residential population and attracts businesses, the many transportation options in the urban core are increasingly important. Four out of five millennials have reported wanting a variety of transportation options for commuting to work and daily activities. Downtown Cleveland’s easy access to public transit, walkability and amenity rich neighborhoods makes it a desirable location to live, work and play. Since 2010, the overall ridership of the Greater Cleveland Regional Transit has grown five percent, with Downtown trolley ridership growing 62 percent.

 

MORE:

http://www.wkyc.com/news/downtown-cleveland-transportation-options-attract-residents-workers/31459964


"Fascism begins the moment a ruling class, fearing the people may use their political democracy to gain economic democracy, begins to destroy political democracy in order to retain its power of exploitation and special privilege." -- Tommy Douglas, Scottish-born Canadian Baptist minister and the seventh Premier of Saskatchewan

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