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4/29/2011
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$1.50/MAY 2 - 8, 2011
VOL. 32, NO. 18
Companies catch on to ‘cloud’ software Internet programs allow savings on leases, servers By CHUCK SODER csoder@crain.com
are asking their lender for permission to rent the project’s six condos, which haven’t sold in the sour housing market. The argument, Mr. Kaufman said, is that “nothing beats cash flow.” Real estate developers throughout Northeast Ohio are ramping up to start building apartments, from Green in Summit County to North Ridgeville in Lorain County. Ari Maron, a partner in familyowned MRN Inc., which is constructing the 102-suite Uptown Apartments on Euclid Avenue near Mayfield Road in the city’s University Circle neighborhood, said the drive for
Ron McClellan understands why he’s starting to see commercials talking about software that comes from “the cloud.” Several Northeast Ohio business executives say their companies are starting to deploy online versions of all sorts of software programs. They now consider implementing software delivered via “the cloud” — another word for the Internet — when upgrading to new versions of the software. The growing popularity of cloud software, which also is referred to as software as a service, is probably why Microsoft Corp. and Salesforce.com Inc. have been airing commercials about it over the past few months, said Mr. McClellan, director of online and hosted services for Hyland Software Inc. of Westlake. “When you see consumer commercials talking about the cloud, you know it has hit mainstream,” he said. Mr. McClellan has seen the popularity increase firsthand: 25% of the 800 new customers Hyland signed in 2010 opted to use the online version of the company’s OnBase document management software as opposed to the version that customers host themselves. In an interview with Crain’s in
See APARTMENTS Page 21
See CLOUD Page 21
MARC GOLUB
The 102-suite Uptown Apartments are under construction in University Circle and part of a bounceback for the rental market in Northeast Ohio.
Apartments a safe haven for developers Vacancies at lowest level since 2000; lenders more eager to hop aboard By STAN BULLARD ■ sbullard@crain.com
INSIDE Ohio City improvements
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Much like other areas of Cleveland, Ohio City business owners will contribute funds to help with security and cleanup in the bustling area. Read the story on Page 3.
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avid “Joe” Kaufman, who is a partner with his brother Jay in the University Lofts apartments and condominiums at 2010 Euclid Ave. in Cleveland, speaks for many developers when he says, “It’s a Kauffman wonderful time to be in the apartment market.” The Kaufmans’ 1-year-old, 30-suite apartment development adjoining their Brothers Printing Co. shop has been at 93% occupancy or higher since last October. Their property manager is starting to collect $200 deposits for people going on a waiting list. The rental market is so strong, David Kaufman said, that the brothers
Anticipating graduate drop, colleges recruit outside Ohio By TIMOTHY MAGAW tmagaw@crain.com
Northeast Ohio’s colleges and universities are casting a wider net to attract more out-of-state students in order to combat the region’s population stagnation, which ultimately could dampen their enrollments. The recession proved to be a boon for some colleges, with enroll-
ments swelling to all-time highs as hordes of students flocked to area colleges in hopes of boosting their job prospects. However, college officials predict enrollment could slow given the expectation that the number of high school graduates will decline over the next several years. Despite a few dips in some years, the number of high school graduates in Ohio grew over the last
decade. The number sat at slightly more than 120,000 for the 20102011 academic year, but is expected to recede to 107,000 by the end of the decade. Though much of the Midwest has experienced similar declines, Northeast Ohio’s colleges are trying to tap into markets such as Pittsburgh, Detroit, Chicago, Erie, Pa, and See RECRUIT Page 6
According to figures from the National Center for Education Statistics, Ohio high school graduates have increased 9.7% from 2001-02 to 2010-11. But, projections show a similar downward trend coming: In the 2019-20 school year, the NCES projects a decrease of 11.8% from 2010-11.
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