CLEVELAND BUSINESS Retail Vacancy Rises, but So Does the Rent
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VOL. 38, NO. 11 MARCH 13 - 19, 2017 Source Lunch It’s a ‘crisis’ Center tries to fi nd way to tackle antibiotic resistance. Page 2 Yve e I u, president of The List Cleveland Development CLEVELAND BUSINESS NEO’s largest employee Advisors Page 23 benefi t fi rms Page 18 SMALL BUSINESS Walking 15 states in four15 states, months four months On his 3,600-mile walk across the United States, SmartShape Design founder Mike Maczuzak wore out four pairs of shoes and endured temperatures as high as 120 degrees in the Mojave Desert. 1 23 67 14 8 4 12 11 5 15 10 9 13 1. New York 9. Missouri 2. New Jersey 10. Kansas 3. Pennsylvania 11. Colorado 4. Maryland 12. Utah 5. West Virginia 13. Arizona 6. Ohio 14. Nevada 7. Indiana 15. California 8. Illinois Crain’s map, via VectorTemplates.com SmartShape Design founder Mike Maczuzak stands on the rim of Bryce Canyon, Utah — the 12th state he walked through. Find the story and more pictures, Page 12. (Contributed photo) REAL ESTATE SPORTS BUSINESS Who’s investing Retail vacancy rises, Private buyers were investing in ‘Legit’ BoxCast poised Cleveland metro commercial real estate at a much higher rate in 2016, for a breakout year but so does the rent compared to the national average and to the Cleveland market of 2015. By KEVIN KLEPS Gordon Daily believes the company By STAN BULLARD by oversupply and competition from User/Other Institutional is primed to really take ight. the internet. [email protected] at eventually could mean a Private Cross-border [email protected] CBRE estimates the region has Public listed/REITs @KevinKleps move from its airport headquarters, @CrainRltywriter 11.7% retail vacancy as of year-end but Daily is much more focused on 100% 2016 from 10.3% a year ago. Howev- In a back room reserved for Box- the months ahead, which will in- Following trends in national retail- er, regional asking rental rates Cast’s employee pingpong tourna- clude the unveiling of a new product, ing and its own market, CBRE Group climbed to $12.13 a square foot at ments, a sta er on a recent afternoon another fundraising round and addi- Inc. has started reporting downtown year-end 2016 from $12.02 a square 75% was on a sales call — taking advantage tional hires. Cleveland statistics as part of its foot a year ago. of what might have been the only quiet In late December, BoxCast reported just-completed annual retail survey In-demand retail locations are space in the company’s second- oor raising $1.43 million in a $2 million covering eight Northeast Ohio coun- able to command far higher rates 50% o ces at Burke Lakefront Airport. round that disclosed a notable new ties. than the regional ask, with taking When the startup, which delivers board member: Sam Gerace, the CEO CBRE reported downtown vacan- rates at some new retail centers high-de nition streaming services to of Veritix until it was acquired by AXS cy at 10.4% among the 1.6 million commanding rents of $40 a square 25% a wide array of businesses, teams and in 2015. Gerace, who has been an ad- square feet of selling space on the foot. Adding more downtown re- organizations, moved into the viser since BoxCast hired its rst em- city’s broad thoroughfares and the tail specifics required the realty 3,600-square-foot spot in 2013, it had ployee, has been the founder and/or long-su ering enclosed malls e brokerage to rejigger its approach only a handful of employees. Now, leader of ve tech startups (most re- Avenue and Galleria. for a different selling environ- 2015 2016 2016 with 27 full-time employees, plus a cently LaunchVector, a 5-month-old Surprisingly, that’s not far from ment. Cleveland U.S. avg. collection of contractors and well- software company). areawide averages as retail gets roiled SEE CBRE , PAGE 19 Source: Real Capital Analytics heeled advisers, BoxCast co-founder SEE BOXCAST , PAGE 22 Entire contents © 2017 by Crain Communications Inc. Akron: New life for the Portage County Municipal Courthouse in Kent. Page 21 PAGE 2 | MARCH 13 - 19, 2017 | CRAIN’S CLEVELAND BUSINESS Attempting to cure antibiotic resistance Case Western-Cleveland VA center aims to solve ‘one of the biggest threats to global health’ By LYDIA COUTRÉ “As a result of this escalating crisis, we’ve microbiology, molecular biology, biochemistry, pharmacology, pro- [email protected] been faced with challenges clinically. The teomics and bioinformatics. Over the @LydiaCoutre next few years, the goal is to bring challenges that the future holds (are) even about three new recruits to Cleve- In the 1990s, when Dr. Robert land to join the center with a focus on Bonomo began studying how bacte- more scary than the present. ... The junior people to mentor and develop ria became resistant to antibiotics, he over time, Chance said. had a limited view of the issue. antibiotics that we have now are not going “It’s part of the brain gain strategy At the time, he and his peers to be able to stop resistance. We have to of building high-quality programs thought resistance was just what they around the medical school, around could observe, but unfortunately, the think of other ways.” the university, leveraging the assets problem has escalated, said Bono- in Cleveland,” he said. mo, medical service chief at the Lou- — Dr. Robert Bonomo, medical service chief at the Louis Stokes Cleveland VA Cleveland can be a bit “pi- is Stokes Cleveland VA Medical Cen- Medical Center, and professor at the CWRU School of Medicine geon-holed” as a medical device ter. Today, the World Health town, Chance said, but it can become Organization calls antibiotic resis- equally successful in other biotech tance “one of the biggest threats to areas. Case VA CARES is a step to- global health, food security and de- ward that. velopment today.” “We’re already recognized for be- With this in mind, Case Western ing a great health care center,” said Reserve University School of Medi- Bonomo, who also is a member of the cine and the Cleveland VA have National Institutes of Health-funded teamed up to study and tackle antibi- a news release. Studies show antibi- ers are crucial, he said. work over his more than two decades Antimicrobial Resistance Leadership otic resistance through the establish- otic resistance adds as much as $20 Roughly a dozen physicians and of work, during which he published Group, which addresses priorities for ment of a new center. billion per year in excess direct scientists have been collaborating nearly 340 peer-reviewed manu- clinical research on antibiotic resis- Bonomo will be the director of the health care costs. with Bonomo for years and have scripts of original research in scien- tance. new Case VA CARES (CWRU-Cleve- “e antibiotics that we have now published about 100 papers in total. tic journals. “I think this broadens the impact land VAMC Center for Antimicrobial are not going to be able to stop resis- Case VA CARES formalizes this Mark Chance, vice dean for re- of the health care delivery that Cleve- Resistance and Epidemiology), tance,” Bonomo said. “We have to work and is a timely partnership for a search at the CWRU School of Medi- land can bring and lead for the rest of which will include work ranging from think of other ways.” “critically important problem,” said cine, said the new center both recog- the world,” Bonomo said. basic science to drug discovery to Every year, at least 2 million people Dr. Murray Altose, chief of sta at the nizes Bonomo’s accomplishments Although the center is a partner- new treatment approaches. in the United States are infected with Cleveland VA. It provides a more sys- and gives him a foundation to ex- ship between CWRU and the VA, “As a result of this escalating crisis, antibiotic-resistant bacteria and at tematic, organized approach to coor- pand his work with new faculty and Chance said that medical aliations we’ve been faced with challenges least 23,000 die as a result, according dinating basic science, clinical sci- recruits, as well as the involvement of or appointments in other hospitals clinically,” said Bonomo, who also is to the Centers for Disease Control ence and patient care, he said. other departments. across the city will help make the ef- a professor at the CWRU School of and Prevention. Scientists and physicians with e loosely aliated group of re- fort Cleveland-wide. Medicine. “e challenges that the e inappropriate use of antibiot- Case VA CARES will conduct new re- searchers that have studied antibiot- “We want to make sure the re- future holds (are) even more scary ics in humans and in livestock have search, modify existing antibiotics, ic resistance with Bonomo have searchers have the maximum oppor- than the present.” contributed to the growth in antibiot- work toward new ones and use de- many strengths, Chance said, but tunities for collaboration with other Increasingly, bacteria and other ic resistance, Bonomo said — plus coys to trick uncooperative bacteria. there are some gaps that the new researchers, that they have the best microorganisms are developing re- the “inevitable consequence of evo- e new center, one of only a center can help to ll as CWRU and equipment, and just sort of a level sistance to the antibiotics used to kill lution,” as bacteria ght to survive. handful of its kind in the country, is the VA pool resources. playing eld across the entire city them, both imperiling health and Because the problem is a moving likely to benet from Bonomo’s con- e center’s faculty members will where they can go wherever they adding to health care costs as doctors target, the center and a multidisci- nections to labs and scientists around come from both organizations and need to go to get things done,” try dierent medicines, according to plinary group of dedicated research- the world.