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Cleveland: Downtown Office Development News

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4 minutes ago, PoshSteve said:

Interesting that Realife is buying suburban office buildings now...

 

Realife is buying darn near everything


"Nearly every problem that we have in the USA -- unaffordable health care, prison overpopulation, hyper militarization, climate change, racism, gun violence, poverty, poor education, urban sprawl and others -- cannot be positively addressed because bribery and conflicts of interest are legal under campaign finance laws which protect the uber-wealthy and the narrow self-interests who grossly benefit from our afflictions."

 

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On 4/3/2020 at 1:55 PM, PoshSteve said:

Interesting that Realife is buying suburban office buildings now...

 

On 11/20/2019 at 6:27 AM, Larry1962 said:

REALIFE REAL ESTATE GROUP is the developer who bought the STARK BUILDING on West 3rd Street and also proposed a now defunct project at STARK'S West 9th Street parking lot that Stark is still trying to sell.

 

BUT whats interesting is that an affiliate of Realife Real Estate Group has recently purchase the Class B asset of a 55,799 square-foot office building known as Metro Center which is located at 6500 Rockside Road in Independence, Ohio for $5.5 million...

 

So maybe we will still see a new development proposal from them for the CBD at some point?

 

Or will they sell the former Stark Building on West 3rd Street to SHW for their upcoming HQ & RD Project? 

 

Or will REALIFE do a complete historical renovation of that building and then enjoy higher rents because of the NEW SHW HQ & RD Project being located next door and with the increase of more retailers and restaurants to support the 6,000 SHW employees?

 

https://www.cpexecutive.com/post/newmark-knight-frank-arranges-office-building-sale-in-cleveland-suburb/

Realife has been buying up both Cleveland and suburban real estate for several years now...

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I moved the discussion from the Stark nuCLEus thread. 

 

 

19 minutes ago, mthompson said:

I used to work at Rosetta, which occupied floors 11-15 and 17. Within the last year or so they downsized to floors 14, 15 and 17 due to multiple mergers. (Floor 16 is a mechanical floor.) Rosetta is now part of Publicis Sapient. I'm surprised to hear that all of the remaining floors that they occupy are available for lease. I'll try to find out from my former coworkers what is going on.

 

Thanks!

 


"Nearly every problem that we have in the USA -- unaffordable health care, prison overpopulation, hyper militarization, climate change, racism, gun violence, poverty, poor education, urban sprawl and others -- cannot be positively addressed because bribery and conflicts of interest are legal under campaign finance laws which protect the uber-wealthy and the narrow self-interests who grossly benefit from our afflictions."

 

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"Nearly every problem that we have in the USA -- unaffordable health care, prison overpopulation, hyper militarization, climate change, racism, gun violence, poverty, poor education, urban sprawl and others -- cannot be positively addressed because bribery and conflicts of interest are legal under campaign finance laws which protect the uber-wealthy and the narrow self-interests who grossly benefit from our afflictions."

 

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With all of the debate on how Covid is going to change the office market, I think its a safe bet coworking space is going to be in for a huge hit. While it doesn't seem like that closing is related, I wouldn't be surprised if we see more. Have to keep an eye on the Western Reserve Building redevelopment, that one was supposed to have a big component of coworking space, wasn't it?

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Taking 75 Public Square off-market also tightens the overall CBD office market. Thankfully they're staying downtown, despite the wishes of staff and managers who wanted free parking in Independence....

 

Apartment rehab prompts office move for debt collection law firm

 

The office building conversion to apartments craze has prompted another tenant relocation, this time the move by the Keith D. Weiner & Associates law firm to 1100 Superior Ave. East from 75 Public Square.

 

The debt collection firm has leased 16,000 square feet at Oswald Centre. Keith Weiner, the firm's president, said the newer building will have about the same square footage but a more efficient layout than its home at 75 Public Square, which dates from 1911. The firm debuts at the Oswald space on Monday, June 1.

 

The layout of the Public Square building accommodated a staff of 77, including 11 attorneys, but the newer Oswald building will allow it to boost staff by more than 30 people and gain room to grow, Weiner said.

 

https://www.crainscleveland.com/real-estate/apartment-rehab-prompts-office-move-debt-collection-law-firm

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"Nearly every problem that we have in the USA -- unaffordable health care, prison overpopulation, hyper militarization, climate change, racism, gun violence, poverty, poor education, urban sprawl and others -- cannot be positively addressed because bribery and conflicts of interest are legal under campaign finance laws which protect the uber-wealthy and the narrow self-interests who grossly benefit from our afflictions."

 

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^ I really like what Mr. Weiner had to say about his decision to say -  "If I were in Independence, I would feel like I was anywhere. But downtown I know I'm in Cleveland and enjoy the vibe here." Independence, Beachwood, Westlake... they're all interchangeable nowheres. Downtown is somewhere

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On 5/28/2020 at 3:31 PM, tykaps said:

Anyone wanna buy 45 Erieview Plaza? It's going up for auction. I'll see how far the $20 in my bank account can go.

 

https://www.loopnet.com/Listing/45-Erieview-Plz-Cleveland-OH/19629480/

 

Article:

https://www.cleveland.com/realestate-news/2020/06/owner-of-empty-45-erieview-plaza-in-downtown-cleveland-to-list-building-for-auction.html

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I always liked that building because it deviated from the shoe box design that is so common in downtown Cleveland.   

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Law firm Weston Hurd sets downtown move

 

As many businesses assess how to proceed in the COVID-19 world — especially in the office leasing market — the Weston Hurd law firm has just set a move to AECOM Centre, 1300 E. Ninth St., from Erieview Tower across the street.

Dan Richards, managing partner of Weston Hurd, said the recent experience of working remotely during the pandemic will shape the way the new office is designed by Vocon Architects of Cleveland.

"We're going to have more remote communications available and more videoconferencing available in the new space as we've learned how well this can work," Richards said. "This builds on our initial desire to be as efficient as possible in the new space."

In line with the efficiency mantra among law firms and other office-using businesses, the firm that dates from 1925 will trim its floor space in the new place. It will occupy one floor, the 14th, at the 20-story AECOM building compared with the 18th and 19th floors at the 40-floor Erieview. The move will slice the firm's footprint to about 30,000 square feet from 40,000 square feet.

 

MORE:

https://www.crainscleveland.com/legal/law-firm-weston-hurd-sets-downtown-move


"Nearly every problem that we have in the USA -- unaffordable health care, prison overpopulation, hyper militarization, climate change, racism, gun violence, poverty, poor education, urban sprawl and others -- cannot be positively addressed because bribery and conflicts of interest are legal under campaign finance laws which protect the uber-wealthy and the narrow self-interests who grossly benefit from our afflictions."

 

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With a big chunk of Erieview set to turn into apartments (and not apparently a hotel?), I'm less bothered by the downsizing in square footage. Still a loss for Erieview though since those floors weren't slated to be converted.

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21 hours ago, skiwest said:

I always liked that building because it deviated from the shoe box design that is so common in downtown Cleveland.   

 

Not to get off topic, but are there really that many "Shoebox" towers in downtown? Erieview, Celebreeze, Ernst & Young, PNC and maybe Lumen come to mind of the taller ones. All the others have some sort of non 90 degree elements to them.

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This listing came up just a few days ago. I thought that Amtrust and its former affiliate National General Insurance were rapidly growing companies and had filled out this building to the max? But I see that nearly one-fifth or 102,000 SF of the 475,600 SF building is becoming available for lease. What is going on here?

https://www.loopnet.com/Listing/800-Superior-Ave-Cleveland-OH/19755726/

Edited by KJP

"Nearly every problem that we have in the USA -- unaffordable health care, prison overpopulation, hyper militarization, climate change, racism, gun violence, poverty, poor education, urban sprawl and others -- cannot be positively addressed because bribery and conflicts of interest are legal under campaign finance laws which protect the uber-wealthy and the narrow self-interests who grossly benefit from our afflictions."

 

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47 minutes ago, KJP said:

This listing came up just a few days ago. I thought that Amtrust and its former affiliate National General Insurance were rapidly growing companies and had filled out this building to the max? But I see that nearly one-fifth or 102,000 SF of the 475,600 SF building is becoming available for lease. What is going on here?

https://www.loopnet.com/Listing/800-Superior-Ave-Cleveland-OH/19755726/

I think that there were som other tenants in the building too. I'm not sure how much space they were leasing.

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A couple of interesting tidbits.....

 

From August 2018:

National General was created as the brand to take the place of GMAC shortly after American Capital Acquisition Corp. bought GMAC Insurance Personal Lines in 2009.

The Winston-Salem economy dodged a major workforce blow in June 2013 when National General committed to keeping a local operation.

About 700 employees had been waiting since December 2011 for word on whether the company would keep its operations in Winston-Salem or move them to Cleveland, where National General had bought a prominent downtown skyscraper for part of its operations.

https://www.journalnow.com/business/with-an-average-wage-of-more-than-55-000-possible-new-jobs-at-national-general/article_d12ce618-79f8-5175-a556-881b347c889b.html

 

FYI, National General leases about 156,176 square feet of space in 800 Superior which it owns 50/50 with Amtrust, although Amtrust is the managing member.

http://ir.nationalgeneral.com/node/9426/html

National General's lease is for 15 years, expiring in 2027

https://sec.report/Document/0001193125-18-337774/

 

When Amtrust partially acquired and relocated to 800 Superior, it announced that it would be leasing 250,000 to 300,000 SF of space in the building.

http://ir.amtrustgroup.com/news-releases/news-release-details/amtrust-financial-plans-expansion-downtown-cleveland

 

It would have to be closer to the 250,000 SF considering the building is 475,000 SF and National General leases 156,000 SF. Plus, Key is in the building as is Advanced Server Management Group Inc. Amtrust kept growing through acquisitions but also laid off 100 employees in its IT division in 2018. That would have freed up only about 20,000 SF or one floor of 800 Superior. At the rate Amtrust was growing, I would have expected that that floor would have been filled up with non-IT new hires fairly quickly.

 

So I'm not understanding why there is 100,000+ square feet available at 800 Superior. Perhaps it's because Amtrust and/or National General is subleasing because they're doing more work from home programs? I was reading work reviews from employees who said Amtrust and National General don't like work from home because they pressure their employees to work long hours, face tight deadlines and produce.

 

 

 

 

 

 

 

 


"Nearly every problem that we have in the USA -- unaffordable health care, prison overpopulation, hyper militarization, climate change, racism, gun violence, poverty, poor education, urban sprawl and others -- cannot be positively addressed because bribery and conflicts of interest are legal under campaign finance laws which protect the uber-wealthy and the narrow self-interests who grossly benefit from our afflictions."

 

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@KJP - Long time lurker, first time poster. I've worked at Amtrust for almost 6 years. In that time,  the 13th floor has had a smattering of employees there for maybe a grand total of 6 months. Floors 9-12 have pretty much been empty the entire time. The first floor restaurant space is news to me, unless they are planning to remodel one of the conference spaces. The retail space must be the spot formerly occupied by Emil's, a sundries shop. I can't say I'm surprised he closed up shop, as his only customers were Amtrust/NatGen employees.

Edited by Ineffable_Matt

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@Ineffable_Matt Thanks!! I was hoping someone who works at Amtrust or NatGen would respond. So it sounds like floors 9-12 are the ones that are the subject of this offering?


"Nearly every problem that we have in the USA -- unaffordable health care, prison overpopulation, hyper militarization, climate change, racism, gun violence, poverty, poor education, urban sprawl and others -- cannot be positively addressed because bribery and conflicts of interest are legal under campaign finance laws which protect the uber-wealthy and the narrow self-interests who grossly benefit from our afflictions."

 

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3 minutes ago, KJP said:

@Ineffable_Matt Thanks!! I was hoping someone who works at Amtrust or NatGen would respond. So it sounds like floors 9-12 are the ones that are the subject of this offering?

 

I'm just going by the loopnet listing you posted earlier, which shows two 1st floor spaces and floors 9-13. Any chance you can let me know how to properly tag someone? I don't think I did it right the first time.

 

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Usually you just start typing out the name after the @ sign and a box will pop up on the screen with a suggested name(s). Then you can click the name you want.

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"Nearly every problem that we have in the USA -- unaffordable health care, prison overpopulation, hyper militarization, climate change, racism, gun violence, poverty, poor education, urban sprawl and others -- cannot be positively addressed because bribery and conflicts of interest are legal under campaign finance laws which protect the uber-wealthy and the narrow self-interests who grossly benefit from our afflictions."

 

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I could be wrong but the two first floor listings look like the garage structure. The floor plan pictures supplied show the property along Vincent Ave.

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"Nearly every problem that we have in the USA -- unaffordable health care, prison overpopulation, hyper militarization, climate change, racism, gun violence, poverty, poor education, urban sprawl and others -- cannot be positively addressed because bribery and conflicts of interest are legal under campaign finance laws which protect the uber-wealthy and the narrow self-interests who grossly benefit from our afflictions."

 

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^18K sq ft. Is that more than one floor? 


There's nothing wrong with optimism, as long as you don't get your hopes up.

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6 hours ago, Dougal said:

^18K sq ft. Is that more than one floor? 

They're going to be taking up half of the 8th floor.

 

Planning to add 120 new staff on top of their current 31. 120 square feet per worker. That's on the low end of the scale from what I understand. I'm guessing there is going to be alot of work from home, which definitely makes sense with this type of company.  Also, this is a NY based company who is doing their expansion here. This definitely fits in with what @KJP has been saying for awhile now.

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5 hours ago, PoshSteve said:

They're going to be taking up half of the 8th floor.

 

Planning to add 120 new staff on top of their current 31. 120 square feet per worker. That's on the low end of the scale from what I understand. I'm guessing there is going to be alot of work from home, which definitely makes sense with this type of company.  Also, this is a NY based company who is doing their expansion here. This definitely fits in with what @KJP has been saying for awhile now.

 

They're also doing some lending locally.  FtF is currntly financing the 3703 Clinton Ave. condos and several single family rehabs in Columbus.

 


There's nothing wrong with optimism, as long as you don't get your hopes up.

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Most of the absorption (91k) last quarter was in the CBD, which ended the first half of 2020 with a positive 203k of net absorption, reversing a comparable loss in the second half of 2019 ....

 

2Q 2020 Cleveland Office Market Report
Cleveland Office Market Weathers COVID-19 Storm...For Now

 

Conditions in the Greater Cleveland office market held steady during the second quarter of 2020, despite the full weight of the COVID-19 pandemic upon the United States. The market managed 145,803 square feet of positive net absorption last quarter. Leasing activity throughout the Cleveland market did drop dramatically in the second quarter due to the pandemic, though leases signed in the prior two quarters yielded occupation, and thus a fair amount of positive absorption in the past quarter. Total absorption for the first half of the year showed a positive 547,889 square feet.
 

Average Asking Rent: $18.03/SF

Vacancy Rate: 16.5%

Net Absorption: 145,803 SF

 

MORE:

https://www.ngkf.com/storage/uploads/documents/2Q20-Newmark-Cleveland-Office-Market-Final.pdf


"Nearly every problem that we have in the USA -- unaffordable health care, prison overpopulation, hyper militarization, climate change, racism, gun violence, poverty, poor education, urban sprawl and others -- cannot be positively addressed because bribery and conflicts of interest are legal under campaign finance laws which protect the uber-wealthy and the narrow self-interests who grossly benefit from our afflictions."

 

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I'm hearing rumblings about a local downtown company with over 200 employees going full time remote moving forward. In lieu of office space, they will have quarterly "retreats" to promote morale... Anyone else hear about this?

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^the fact that they will find it necessary to have retreats to promote morale suggests to me that it is a problematic decision.  Clearly many companies that will do this are viewing this as a cost saving measure and are fortunate to hide behind the virus in doing so.  Hopefully they will pass on these savings to their employees in the form of raises.  What do you think the odds of that will be?

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Just as side note...funny little story.  I was chatting with my niece's boyfriend at a cookout this past weekend and asked him when and if his company's offices where going to open and if he was tired of working from home.  During the course of the conversation he mentioned how sometimes he will forgo his usual shorts and tee shirt and get dressed up by putting a polo shirt on.  I kind of paused and smirked and told him I thought it was cute that he thought wearing a polo shirt was getting dressed up to go to work.  I was of course being a smart ass but he got a laugh out it.  He knows I am from a different generation (one that wore a suit to the office every day) and I have a well earned reputation in the family of being a curmudgeon when it comes to appropriate dress.

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