Located on the southeast corner of Cedar Avenue and East 105th Street in Cleveland’s University Circle district is the new headquarters for Canon Healthcare USA. The former IBM Explorys building gained its new owner’s logo last week (Canon). CLICK IMAGES TO ENLARGE THEM.
Canon invests in training center in Mayfield, too
Canon Healthcare USA, Inc., a subsidiary of Canon Inc., today announced its acquisition of an established building for its headquarters, adjacent to Cleveland Clinic’s main campus in Cleveland’s University Circle district. This purchase has been in the works for some time and NEOtrans had reported recent progress toward the deal earlier this month.
With this purchase, Canon officials said they intend to accelerate the growth of its medical business and Canon Healthcare in the U.S. market, which is extremely influential on the global market, is positioned to drive the growth. Canon expects the establishment of Canon Healthcare headquarters in Cleveland as a core U.S. business operation requires substantial capital investment.
The Ohio Department of Development (ODOD), through its Ohio Tax Credit Authority, today approved a 10-year, 2.842 percent job creation tax credit to support its purchase the building. This building will serve as the foundation for Canon’s new U.S. comprehensive imaging resource center, creating new jobs in medical imaging innovation and headquarters support.
While the purchase price was not disclosed, Canon will invest a total of $33.65 million to buy and retrofit the building. The 2018-built, former IBM Explorys building is being acquired from Geis Companies but the 2.3 acres of land on which it sets will remain in the ownership of the Cleveland Clinic Foundation.
The city of Cleveland is also providing to Canon Healthcare a five-year, 50-percent payroll tax credit on the 2.5 percent income tax withheld by Canon. The company plans to have in Cleveland an annual payroll of $7.5 million, according to city officials.
The new Canon logo was up by Friday of last week on the former IBM Explorys building (Dwain Ross II, Photographer, Untapped Visuals).
The center will be part of the Cleveland Innovation District, a more than $500 million public-private partnership that brings the State of Ohio and JobsOhio together with Cleveland’s healthcare and higher education institutions to accelerate research, create jobs and educate the workforce of the future.
The potential synergies with the Cleveland Innovation District attracted Canon to launch Canon Healthcare as its new U.S. healthcare subsidiary in Cleveland in February 2023. Canon Healthcare is also in close proximity to Mayfield Village-based Canon group companies of Canon Medical Research USA, Inc., the newly opened Canon Medical Academy USA and Quality Electrodynamics, LLC.
The 43,000-square-foot building, located at the intersection of Cedar Avenue and East 105th Street, across the street from the Fairfax neighborhood, will host the main office of Canon Healthcare as well as space for other Canon entities. The site is in Cleveland City Council’s sixth ward.
This site will also act as a hub for developing further U.S. and global Canon Healthcare USA, Inc. Canon Healthcare Acquires Building in the Cleveland Innovation District for Main Office and Comprehensive Imaging Resource Center to Accelerate Medical Imaging Innovation collaborations.
Cleveland City Council President Blaine Griffin, who also represents Ward 6, said the city, county and nonprofit development corporations like University Circle Inc. and Fairfax Renaissance have been steadily acquiring properties of both sides of East 105th in recent years to accommodate future research, medical and manufacturing facilities.
An abandoned house on Frank Avenue, just south of Canon Healthcare’s new home, shows the transition from residential to commercial land uses underway on the east side of East 105th Street (Google).
“Canon Healthcare headquartered in Cleveland, Ohio is committed to improving patient care from global perspective through innovative technology based on the ‘Made for Life’ philosophy,” said Hisashi Tachizaki, president of Canon Healthcare, in a written statement.
“This collaboration with Cleveland Clinic, alongside existing and developing relationships with other major academic medical centers through activities such as multi-center studies, allows us to leverage our mutual strengths to enable a future that delivers on this promise,” he added.
The building will see multiple installations of imaging systems to support the strategic partnership between Cleveland Clinic and Canon Healthcare developing innovative imaging and healthcare IT technologies aimed at improving diagnosis, care and outcomes for patients. About 50 workers will be based here.
This site will bring together a cross-institutional team of clinician-scientists and engineers to pioneer state-of-the-art technologies in imaging systems such as MRI, CT, molecular imaging, ultrasound and X-ray. Collaborative projects will focus on cardiology, neurology and musculoskeletal medicine, and will have three major components – pre-clinical assessment, human imaging and technological innovation.
“We are pleased to welcome Canon Healthcare USA to the Cleveland Innovation District and look forward to continuing our innovative collaboration,” said Serpil Erzurum, Cleveland Clinic’s chief academic and research officer. “Bringing together our collective strengths enables us to accelerate pioneering developments in medical imaging and quickly bring these new advances to patients.”
While the left or west side of East 105th Street in this photo is likely to remain mostly residential, the right side may turn more commercial. The Canon HQ is the white building in front of the big parking garage (LoopNet).
Canon Healthcare’s new HQ was built in 2018 for IBM Explorys. Explorys was spun off from Cleveland Clinic in 2009 as an independent company. It became part of IBM Watson Health six years later. But it failed and was sold off in pieces but mostly to a San Francisco outfit called Francisco Partners. It was branded as Meritive that retains some of IBM Watson Health’s executives.
As noted earlier, Canon has a second facility in Greater Cleveland. In 2023, it leased 14,662 square feet in a larger building owned by 6660 Beta LLC at 6655 Beta Dr., Mayfield Village. Until Canon acquired the former IBM Explorys building at Cedar and East 105th, it looked like Canon might put its headquarters in the suburbs too.
Instead, Canon Medical Systems USA hired Panzica Construction to build out a training center for medical imaging equipment in Mayfield. The work, according to a mechanic’s notice filed with Cuyahoga County last year, includes a new eastern façade and entrance, classrooms, imaging rooms, conference rooms and employee lounge. The property is owned by
“Along with JobsOhio and other local partners, we welcome Canon Healthcare USA’s decision to establish its U.S. comprehensive imaging resource center at the Cleveland Innovation District,” said Ohio Gov. Mike DeWine. “The investment validates Ohio’s commitment to attracting world-class healthcare companies to northeast Ohio that will create healthcare products and solutions to improve lives on a global scale.”
A team consisting of JobsOhio, Team NEO, Ohio Department of Development, Greater Cleveland Partnership, Cuyahoga County, and the City of Cleveland collaborated closely with the company to ensure the successful execution of the project, Canon officials said.
The newly opened Canon Medical Academy USA and Canon affiliate Quality Electrodynamics, LLC are located in this building on Beta Drive in Highland Heights. Last year, Canon renovated 14,662 square feet in this building for its training center. This photo is from 2022 (Google).
“Canon Healthcare USA’s establishment of its new U.S. Healthcare Headquarters and R&D center is exactly what was envisioned when the State of Ohio, anchor institutions, and JobsOhio invested in the Cleveland Innovation District,” said JobsOhio President and CEO J.P. Nauseef.
“Attracting premier life science leaders is evidence that these investments are working, demonstrating the value of our research institutions and of our collaboration with Mayor (Justin) Bibb, Governor DeWine, Team NEO, Cuyahoga County, Canon and our anchor partners.”
“We are thrilled that Canon Healthcare USA has selected Cleveland’s Innovation District for its national headquarters,” said Bibb. “This investment is a testament to our growing reputation as a leader in medical research, technology, and healthcare. We look forward to a strong partnership that will drive economic growth, create opportunities for our residents, and improve patient outcomes in communities across the nation.”
The acquisition of the building and development of the new facility will bolster the local Ohio healthcare workforce and enrich the Cleveland community by nurturing and attracting talent and fostering innovation. Reflecting Canon’s commitment to contributing to advancing healthcare technologies that improve quality of life for everyone around the world, this move sees Canon strengthening its leadership role in the medical imaging research development and clinical solutions space.
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