Scroll Down

Market Report

Cleveland Office Market Report

2019 Outlook

Suburban Assets Continue to Garner Attention Despite Newfound Interest Surrounding Downtown Cleveland

Steady job creation fuels space demand. Strong tenant growth continues to propel the Cleveland office market, stabilizing many suburban properties and breathing new life into some assets in the central business district. As a result, office fundamentals should witness further improvement in 2019, particularly vacancy, which is expected to post a 30-basis-point decrease. A slowdown in office construction is supporting this movement; however, new businesses entering the market as well those already present and looking to broaden their Cleveland footprint are opting for existing space, further compressing the vacancy rate. Moreover, vacancy in the CBD is expected to maintain its downward trend as employers seek space near a growing millennial population. Tight conditions can also be seen in some eastern Cleveland suburbs, especially neighborhoods around the Pinecrest development where a live-work-play dynamic appeals to many employers. Consequently, this area should log relatively strong rental gains this year, although rent growth on the metro level will remain subdued.

Related Research

Back to top