20100614-NEWS--1-NAT-CCI-CL_--
6/11/2010
3:05 PM
Page 1
$1.50/JUNE 14 - 20, 2010
Vol. 31, No. 24
Land prices land in the dumper Wealthy investors, individuals seize chance to add terra firma as economy soils values By STAN BULLARD sbullard@crain.com
With housing and commercial development continuing at low ebb as the recession and real estate credit crunch linger, prices for Northeast Ohio land have collapsed almost across the board.
IT outfits see reboot in client spending By CHUCK SODER csoder@crain.com
Ganesh Iyer’s customers have been a lot more generous so far this year. The CEO of Vertex Computer Systems Inc. is one of several information technology executives in Northeast Ohio who say local companies have been spending noticeably more on IT this year. The effect has been particularly pronounced at Vertex, a Twinsburg company that provides custom software and IT consulting to businesses. The company’s sales during the first quarter were up by more than 30% compared with the first quarter of 2009, which Mr. Iyer said was a particularly slow year because of the recession. Sales for the second quarter, which still isn’t over, have been good, too, said Mr. Iyer, who declined to release revenue figures. Those increases say something not only about Vertex, but also about the willingness of its customers — most of whom are in Ohio — to spend money on IT. “It has been a dramatic turnaround since the beginning of January,” Mr. Iyer said. Other information technology companies that serve local businesses and organizations agreed that since
Aside from national homebuilders and industrial users, the list of land buyers in the market is short. It consists of couples who buy lots for dream homes or developers and wealthy investors who can buy land to hold it for an indefinite period, experts say. Both share the ability to pay cash as banks eschew
the risks of speculative building or lend so little on land that buyers choose to self-finance. Consider the unlikely but pleasant fate of 30 acres on Otten Road in North Ridgeville. Shannon and Michael Sedivec set out in 2005 to buy the farmland from an estate. They feared it would go to a homebuilder, and development would reduce the value of their colonial on 10 acres nearby. Originally, the parcel was marketed to homebuilders with an asking price
THE POWER OF FOES
of $800,000. The couple bought it recently for $400,000 cash. “We want to keep it green so it doesn’t become home to a development at (a density of) 100 homes per 50 acres,” Mrs. Sedivec said. “We want to keep it for family, a place where we can spend time together and have rabbits and animals for the kids.” The Sedivecs plan to sell a parcel each to two of Mr. Sedivec’s brothers and another to a neighbor. They’ll
INSIDE Browns on right track After a tumultuous 2009 season and an eventful offseason, the Browns appear to have their sea legs beneath them. The team reports season tickets are being renewed at a rate above 90%, a figure likely higher after this weekend’s Select-a-Seat at Cleveland Browns Stadium. Read Joel Hammond’s story on Page 7.
See LAND Page 20
Teams across major pro sports use opponents’ popularity to their advantage to put fans in seats
By JOEL HAMMOND jmhammond@crain.com
W
ith Washington Nationals’ phenom pitcher Stephen Strasburg scheduled to make his second career start in Cleveland, the Indians last Thursday unveiled a regional advertising campaign to promote this past weekend’s series against the Nats. Not that they had to: After Mr. Strasburg, in his Major League debut last Tuesday against Pittsburgh, struck out 14 in seven innings, the Indians sold 3,000 tickets in 16 hours on Wednesday for his slated Sunday appearance. The Indians, who as of last Thursday were last in the majors in attendance at 15,467 per game, expected their second-biggest crowd of the season yesterday, aside from an Opening Day sellout. The ad blitz featuring Mr. Strasburg follows a time-honored sports promotional ploy of playing up the appearance of top-flight opponents and rivals’ marquee stars in order to market your own franchise. For poor-performing teams, seizing such opportunities provides a desperately needed boost at the gate.
ILLUSTRATION KRISTEN WILSON
See POWER Page 21
24
See IT Page 20
0
NEWSPAPER
71486 01032
6
SPECIAL SECTION
SMALL BUSINESS Energy audits now big business as companies, homeowners seek savings ■ Page 13 PLUS: HIRING STRATEGIES ■ GRAND OPENINGS ■ & MORE
CrainsCleveland.com/30thanniversary