The bank is moving its regional headquarters from the currentHuntington Building on Euclid Avenue, leaving more space, and lessexpensive, for a smaller collection of offices at a slightly higherrental rate. Jelepis says the lease rates in 200 Public Sq. rangefrom $22 to $25 per square foot.


Standard Oil had occupied about 75% of the building when it wasopened in 1985. After BP took over, the company gradually moved outof the space, only leasing about 305,000 square feet in 1996. Theoil firm moved out of Cleveland in 1998, but still had its leaseuntil 2009, and attempted to sublease its offices. However, as timepassed, it became harder to find a tenant, Jelepis says. "The spacebecame less and less attractive to big users who didn't want tomove in for only two years," he says. So, BP bought out the lease ayear early, he says, just recently making the last rent payment."That allowed us a good opportunity to make a deal," Jelepissays.


Huntington has agreed to take floors six and seven, as well aspart of the 11th floor and retail space on the first. The buildinghas done pretty well this year, Jelepis says, with more than220,000 square feet leased, including from tenants Marsh Insurance(50,000 square feet) and Cliff's Natural Resources (60,000 squarefeet). Other tenants include Price Waterhouse and Accenture. "ClassA space in Cleveland is in that sweet spot, at about 9.5% vacancy.It's very competitive, there's more demand than there is supply,"he says. Regardless, he says it's not likely a new building will goup anytime soon, especially with his recent deal. "People talkedabout building a new office tower here, but that was before theother shoe dropped on the economy. No one's going to do that now,especially in a second-tier market. Realistically, no one's goingto get a new building online here by 2011."


The bank will not be moving to its new digs until 2011, when itslease is up at 917 Euclid. Investor Carl Glickman, owner of theHuntington Building, could not be reached for comment.

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