CINCINNATI — Paycor is moving its headquarters downtown, into the former Saks Fifth Avenue building, according to an announcement from 3CDC on Wednesday.
In March, 3CDC bought the building from the City of Cincinnati for $1. When the sale was announced, 3CDC unveiled design proposals for the space that included plans for a restaurant, retail and office space within the site.
According to Wednesday's announcement, part of that plan is still in place, with 13,000 square feet set aside for restaurant space, though there was no mention of retail space in the most recent announcement.
There's also an additional 20,000 square feet of office space available on the first floor for which 3CDC said it's still working to find a tenant. The capital management software company will occupy the second floor of the building.
However, 3CDC says Paycor will operate as "an anchor office tenant for the space" at 101 West Fifth Street.
According to the announcement from 3CDC, Paycor's new headquarters will "serve as a hub that will be used for training, corporate events and hosting associates from across the country on a regular basis."
The space will play host to over 100 work stations, but it will also have spaces for gatherings, like training sessions or other corporate events, according to the announcement.
The move is estimated by 3CDC to bring hundreds of associates to Cincinnati, with the space capable of hosting more than 500 people at one time.
"We are thrilled to announce the relocation of Paycor's headquarters to the former Saks Fifth Avenue building, a move that aligns with our virtual-first approach and meets the evolving needs of our business," said Raul Villar Jr., CEO of Paycor, in a press release. "This central location, with easy access to airports, hotels and entertainment will provide a collaborative workspace for our employees, optimizing our footprint while maintaining our commitment to the Greater Cincinnati Region."
The available office space Paycor will inhabit spans 40,000 square feet — a stark change from Paycor's previous home in Norwood, which was a 136,000-square-foot building built to hold around 850 employees.
The Norwood headquarters was finished in 2014 and by 2016, it was nearly full of employees.
In February, Norwood passed an ordinance that terminated the city's agreement with Paycor, citing "a contractual dispute between them."
The ordinance, signed by city officials on Feb. 27, says the agreement between Norwood and Paycor offered the company property investment reimbursement payments in exchange for Paycor maintaining a specific level of "Annual Qualifying Wages," though the ordinance does not say how many employees were required to keep up Paycor's end of the bargain.
According to the ordinance, Paycor was unable to fulfill outstanding obligations under the agreement, so that arrangement was terminated — to the tune of $2,250,000.
In exchange for the agreement's termination, Paycor agreed to pay the City of Norwood in four installments of $562,500 every April 1 through 2027. If Paycor does not make the payment, the amount owed gains interest, the ordinance states.
It's unclear what will happen with the current Paycor building in Norwood, or if the business intends to sell it anytime soon.
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