As Downtown Cleveland captures the majority of recent commercial real estate news for its development projects, the city's Midtown area has quietly become a successful office submarket - specifically from East 57th Street to East 70th Street along Euclid Avenue.
Dick Pace pioneered the progression of this area's resurgence with his redevelopment of the former Baker Electric Building, 7100 Euclid Avenue, nearly ten years ago. Public interest and prices have both elevated to new heights as a result.
Since then, Hemingway Development has developed over $40 million in three office and laboratory buildings in their MidTown Tech Park. Encouragingly, these buildings, all built on speculation, are 93% occupied. Furthermore, Hemingway hasn't stopped. The company has announced its next 62,000-square-foot speculative office building will rise from the company's 11-acre campus known as Link59.
Family and locally owned automotive retail giant Dealer Tire's new corporate headquarters is well underway at 7012 Euclid Avenue. In fact, it's believed that the company is ahead of schedule on the 166,000-square-foot Victory Innovation Center renovation and will occupy its new facility from late February to early March of this year. This former Refrigeration Sales building will house 400 employees. An investment of over $25 million represents rhe enormous endorsement of the Health Tech Corridor and brings justification to the RTA's $200 million HealthLine investment to the street in 2007-2008.
Additionally, next to Dunham Square, a group of investors is planning a new hotel that will service this office submarket, as well as the families of Cleveland Clinic patients and visitors to the area.
What's remarkable is that in the year 2000, land in this area could have been acquired for under $10,000 per acre. Now if you can find any land at all, it will most likely be above $500,000 per acre, with most land parcels near the Cleveland Clinic hover around one million dollars per acre. Few markets in the United States have seen such appreciation...and the market continues to grow!