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Market Report

Cleveland Multifamily Market
Report

2025 Investment Forecast

Developments in Downtown Cleveland
Facilitate Long-Term Growth

Suburban performance may be joined by downtown resurgence. Aided by limited new supply, five of Cleveland’s nine suburban submarkets saw Class A vacancies below 5 percent heading into 2025. This is associated with robust rent growth over the past three years, particularly in the more near-in submarkets. As such, the gap with downtown rents has narrowed, which may prompt some inter-market relocation. Notably, overall suburban vacancy has begun to rise, standing over 100 basis points above the 10-year average of 4.6 percent entering this year. More vacancy pressure may come to East Cleveland in 2025, with developers set to deliver 700 units here before 2026, which is one-third of market additions. By comparison, Downtown Cleveland’s vacancy rate neared 10 percent at the end of 2024, but major projects like Sherwin-Williams’ new headquarters and the $3.5 billion riverfront development will likely boost long-term housing demand in the core. These targeted expansions and public investments point to an eventual uptick in tenant demand for well-located Class A units, fostering a more attractive environment for institutional capital.

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