Commercial Real Estate News Brief: June 2014

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Commercial real estate is a dynamic industry. Keep up with Spaces’ monthly recaps of the most valuable industry articles we’ve recently come across, focused on news in Ohio, Michigan and Pennsylvania.  

Workplace Trends: Does Your Space Measure Up? 

JLL CRE News BriefIn a recent article from JLL’s newsroom, Richard Kadzis (@IndustryTracker) posed the question: “Does your workplace give you a competitive edge?”

Employee retention, recruitment, and ultimately, production is linked to workplace structure and culture. Your office can drive (or destroy) your culture. So, back to Richard’s question. Does your space give you an advantage? If not, below are five trends to keep in mind as you rework your own real estate strategy.

1. Gaming at work? Millennials enjoy video games. So, businesses are looking for ways to use high-powered, 3D tech to gamify (and speed up) decision-making.

2. Let workers decide. Given the freedom to decide where they will work (i.e. private vs. collaborative space), employees are happier.

3. The end of command-and-control. The “bottom-up” approach cultivates a sense of community. It’s critical that all employees are given a voice.

4. Soaring demand for health and wellness. Sitting all day does not make for a healthy lifestyle. Companies are looking for ways to proactively encourage movement, like staggered elevators.

5. Return to the city. Young pros are looking to downtown areas for vibrant spaces to live and work.

Read Richard’s full post for details.

Cleveland Attracts Young, Educated Demographic

In the eyes of educated young professionals, Cleveland rocks.

Cleveland’s metro area gained about 60,000 professionals (25 years and older) with a college degree between 2000 and 2012, according to a new report from Cleveland State University.

To uncover what could be causing this drastic upturn of attraction to the region, Forbes reported that, “Some of it has to do with a 25% expansion of STEM employment from 2003-13, much of it in healthcare tied to the region’s prestigious hospitals.” The city also offers affordable living, and a growing variety of living and entertainment options.

More proof that Cleveland is on its way up: The New York Times recently reported that 35 historic, downtown buildings are undergoing renovation. The Times even called Cleveland, “a city repurposed.”

Cleveland Chart_June CRE News Brief

The Rise of Tech in Detroit

Detroit is making headlines—in a very good way. Thanks to the city’s affordable real estate options and abundant employment gains, Detroit is quickly making a name for itself in tech.

With big names like Google, Twitter and Amazon opening offices in the area, things are looking up. Not surprisingly, GlobeSt.com said that Detroit’s ongoing success in the tech sector has potential to become a main driver in the local “revival.” And, Detroit officials are looking to maximize these opportunities. TheStreet reported:

Detroit Mayor Mike Duggan announced the formation of a 17-person committee to advise the city on an ‘innovation district,’ an area that is anchored by one or two large institutions and that tries to draw technology-related businesses.”

For more on on key trends impacting tech in general, check out JLL’s recently released infographic series.

News Wrap-Up in Our Region

Cincinnati  

  • General Electric’s new global operations center will be fully staffed and up-and-running by 2018. The company is projected to bring the area an additional $1 billion annually.
  • South Carolina-based Hilex Poly Co. LLC is acquiring one of Cincinnati’s largest manufacturing companies, Duro Bag Manufacturing Co.

Cleveland

  • Formerly Eaton Corp’s home, the building at 1111 Superior may soon be purchased by American Landmark Properties Inc. The 1111 Superior location is expected to remain an office building. American Landmark also owns the nearby building at 1100 Superior (i.e. Oswald Centre).
  • A 207,000-square-foot bulk warehouse is being planned in Twinsburg. The property is projected for completion in late February 2015.

Columbus

  • Nationwide is planning to relocate nearly 3,600 employees workers to its future corporate campus at Grandview Yard. When complete, the new campus will be more than 500,000 square feet.
  • Pier 1 plans for an e-commerce fulfillment center in Grove City. Through a three-year plan, the company expects to create more than 150 jobs in the region.

Detroit

  • Blue Cross Blue Shield of Michigan (BCBSM) and Ally Financial Inc. are both considering office space in the 2.2 million-square-foot Southfield Town Center. BCBSM may move into a 250,000-square-foot space, while Ally Financial is considering 300,000 to 350,000 square feet of space.
  • Third Wave Group LLC, the U.S. holding company for Beijing Dixing Taihe Investment Group, is planning a $120 million automotive R&D center in Plymouth Township.

Pittsburgh 

  • In early 2015, Calgon Carbon Corp. will relocate its headquarters to a 75,566-square-foot space in Moon Township’s Westpointe Corporate Center Four.
  • Due to isues with cash flow, EveryWare Global Inc. may close in August. The Monaca plant currently has about 400 employees.

Newspaper image via NS Newsflash

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