Prime office spaces continue to be in high demand in Downtown Cleveland. BakerHostetler is just the most recent name added to the growing list of companies looking to do or to continue doing business in the CBD. Ranked 65th on the AmLaw 100 (American Lawyer, 2013, by gross revenue), the global law firm recently signed a 15-year lease for space in Downtown Cleveland’s iconic Key Tower. Currently, it is located in PNC Center, at East Ninth Street and Euclid Avenue.
Standing 57 stories, or 947 feet tall, Key Tower is the largest building in Cleveland, the largest in the state of Ohio, the 20th largest in the United States and the 107th largest in the world. The skyscraper was completed in 1991 and opened in January 1992. It was designed by the famous architect César Pelli. The building offers 1.3 million square feet of space and is the headquarters of KeyCorp, the holding company for KeyBank. KeyCorp signed a 15-year lease extension for 37 percent of the Class A office tower in 2013.
Columbia Property Trust, one of the nation’s largest office REITs, has owned Key Tower since December 2005. Starting in January 2016, BakerHostetler will occupy five floors of the 57-story building, about 115,615 square feet of space. Columbia Property Trust was represented by its vice presidents of asset management, Jerry Banks and Darik Afshani, and by Douglas Miller, Cindy Greiner and John Klayman of Jacobs Real Estate Services, an affiliate of The Richard E. Jacobs Group. Sherry Cushman of Cushman & Wakefield Inc. and Doug Leary of CBRE Group Inc. represented BakerHostetler.
“We are pleased to welcome BakerHostetler as a tenant at Key Tower,” Jerry Banks said in a statement for the press. “This deal supports our strategy to build value for our investors by enhancing the tenancy of Key Tower with yet another long-term, highly creditworthy tenant.”
Over the past two years, tens of businesses have moved to the CBD, bringing over 5,000 new jobs with them. CBRE expects this trend to continue for the next few quarters and the demand for prime office space to remain strong. The overall vacancy rate decreased in the third quarter of 2013 from 20.2 percent to 20.1 percent, while office rental rates increased by $0.86, ending the third quarter at $17.87 per square foot. In the CBD, rents increased from $19.10 per square foot to $19.29 per square foot.Photo credits: Columbia Property Trust Charts courtesy of CBRE.