Home News American Greetings lists 250,000 square feet of its HQ for sublease

American Greetings lists 250,000 square feet of its HQ for sublease

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American Greetings Corp., a maker of greeting cards and personal expressions, has a big message in the evolving office market. The company has offered to sublease 250,000 square feet of his massive five-story creative studio and headquarters in Westlake.

Opened in 2016, the company’s creative studio is the headquarters and home of creative writers and artists, with 656,000 square feet of office space at 1 American Blvd. The building is located at the southern end of the mixed-use Crocker Park development.

A list of spaces over floor 1/2 in one of the region’s newest headquarters is distributed by Cushman & Wakefield Cresco Brokerage. The listing is being handled by his three agents at Independence Real Estate Brokerage, Rico Pietro, Jim Krivanek and David Lev.

Cresco principal Pietro said in a phone interview: Greetings is open to signing large companies that want a large space near the amenities of Crocker Park, so if a company with 200 staff wants a stunning office, it’s something to consider.”

According to Pietro, subleasing companies need a culture that blends in with the American greeting and adds value to the property. The company is unlikely to split his 130,000-square-foot floor over the building’s sprawl. Part of his ground floor of the building houses Urban Air Adventure Park, a luxury recreation center, and the structure is already one step closer to multi-tenant use.

Additionally, Tech West, another building just west of the headquarters that was designed for the technical and computer staff when the company moved from Brooklyn to Westlake, has already been subleased to three tenants by the Cresco crew. It has been.

Pietro stressed that American Greetings, which has long-term leases on properties owned by Cleveland’s Midwest Real Estate Partners, has no plans to exit Westlake. Includes members of the Weiss family that trace their origins to Jacob Saperstein. Weisses retained his 40% stake in American Greetings when it went private in April 2018 in a deal with his New York City-based private equity firm, Clayton, Dubilier & Rice. was doing.

American Greetings ranked 16th on Crain’s Cleveland Business list of privately held companies with $1.3 billion in revenue this year. As of June 30, the company disclosed his 895 local full-time equivalent staff on the list. He had 1,700 employees when he moved into the new building six years ago.

American Greetings responded by calling and emailing about the list and asking what a work-from-home strategy would look like if it were in place, via email: Not participating at this time. “

Asked about the listing, Diane Davison, senior vice president of Hannah Commercial’s Cleveland office, said, “Oh my God, Sublease has lost its stigma during the pandemic.”

Subleased space is attractive because the company leasing the space is looking to lower the rent they pay to and from their partners, potentially below market rents. However, if physical improvements to the space are required, such as new hallways or additional tenant restrooms, construction costs can quickly wipe out the savings.

The American Greeting offering will increase the amount of subleased space offered in the Cleveland-Akron area.

The market has more subleased space than ever before since the end of the Great Recession, according to a study by Cleveland-based brokerage firm JLL Inc. , it says much less. And it opened the door for many office workers to work from home.

JLL data shows that 822,772 square feet of subleased space is available in the area. This is a significant increase from the end of Q3 when 574,070 were available.

The list also snapped a year of declining sublease vacancies from a pandemic peak of 745,703 at the end of the third quarter of 2021, JLL reported.

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