By Adrian Maties, Associate Editor
Oswald Cos., one of the nation’s largest independent, employee-owned insurance companies, has been looking for space all over Cleveland to accommodate its needs. The company has been located in downtown Cleveland since 1893 and seems to be focused on remaining in the city’s center.
In August 2013, Oswald Cos. will move about 200 employees and its headquarters to 1100 Superior Ave., a 21-story, 576,000-square-foot Class A office tower built in the early 1970s. Oswald struck a deal with American Landmark Properties Ltd., 1100 Superior’s owner, to lease the 13th, 14th and 15th floors for 12 years. The space was previously occupied by Cliffs Natural Resources.
Right now, Oswald’s offices are located at 1360 E. Ninth St., in the IMG Center, the company’s home for the past 21 years. The new space totals 71,000 square feet, a 48 percent increase over its current 48,000 square feet. Oswald will move 220 employees from its current headquarters and almost a dozen from its Beachwood office to the new location next to the revived Perk Park on E. 12th St.
The Oswald deal is one of the biggest at 1100 Superior. And it comes with naming rights: The building will be renamed the Oswald Centre. In addition, a new fitness center will be constructed, as well as a 4,000-square-foot, first-floor conference room.
According to Marcus & Millichap, the downtown Cleveland office market is gaining momentum. Multiple companies have vacated space in the suburbs and established a presence in the core. The overall vacancy is expected to drop to 20.7 percent this year. Asking rents will grow by 0.7 percent to $18.50 per square foot, while effective rents are expected to close 2012 at $14.69 per square foot, an increase of 0.8 percent.
Photo credits: American Landmark Properties
Charts courtesy of Marcus & Millichap.