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Market Report

Cleveland Multifamily Investment Forecast

2020 Outlook

Luxury Units Outside the Core Begin to Materialize; Dispositions Remain Limited

 

Luxury rental demand multiplies outside of urban core Development continues in the central business district this year with three-fifths of Cleveland’s 1,700 apartment supply being completed here in 2020. While there is demand for luxury units in the city, renters are also seeking high-end apartments slightly east of the city, where the average effective rent is lower than the central business district’s rate. Developers are also enticing renters to these areas by advancing the retail and entertainment components within new apartment buildings. This year in the town of Richmond Heights, construction will begin on the first phase of the Belle Oaks multifamily neighborhood. The full development will be completed in 2022, featuring 790 apartments with approximately 315,000 square feet of retail, including Regal’s 20-screen theater complex. Increased leasing activity in this area has already lowered the submarket’s vacancy close to 3.0 percent in 2019. Starting in 2020, six out of 10 Cleveland submarkets will start with vacancy under 3.5 percent

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