A comprehensive overview of the Cleveland apartment market indicates that the largest concentrations of speculative apartment space are located in the East Cleveland/Cleveland Heights submarket, amounting to 14,110 units and 11.7% of the metropolitan inventory, followed by Lakewood/Linndale/Brooklyn, with a 11.0% share, and Euclid (9.3%). Since the beginning of Q4 2012, the fastest growing area has been the Downtown/The Flats/Warehouse District submarket, adding 4,013 units over that period, or 49.2% of total metropolitan apartment completions.
Distribution / Warehousing
A summary of key real estate supply and demand metrics reveals that during the fourth quarter the Cleveland warehouse/distribution market experienced positive net absorption, advancing effective rents, and downward movement in the market's vacancy rate. It is important to look at each of these critical measures of market health in more detail and from both a historical and forecast perspective.
Flex / R&D
A summary of key real estate supply and demand market indicators shows that during the fourth quarter the Cleveland Flex/R&D market experienced positive net absorption, declining effective rents, and no movement in the market's vacancy rate. It is meaningful to study each of these critical measures of market equilibrium in more detail and from both a historical and forecast perspective.
Office
The Cleveland office market is comprised of 33.4 million square feet in five geographic concentrations ranging in size from the 16.8 million square foot Downtown submarket to the Cleveland East/East Suburban submarket, which amounts to 2.6 million square feet. In the ten-year period beginning with Q4 2012, the Downtown submarket has experienced the greatest introduction of new inventory, 450,000 square feet, amounting to 47.2% of all new competitive stock added to the market.
Retail
A comprehensive assessment of the Cleveland retail market reveals that the primary concentrations of competitive retail space are located in the East Suburban submarket, representing 8.3 million square feet and 32.8% of the metropolitan inventory, followed by West Suburban, with a 21.8% share, and Strongsville/Parma/Southwest Cleveland (19.4%). Since the beginning of Q4 2012, the fastest growing area has been the East Suburban submarket, adding 176,000 square feet over that period, or 39.9% of total metropolitan retail completions.
Market Trends
2022 Population
2,016,410
Since
2021
Population Change
-0.34%
Household Average Income
$156,659.00
Number of Households
848,490
Employment
White/Blue Collar Jobs
30%
Office (2022)
17%
Industrial (2022)
Market Trends
Apartment
Inventory
Units/SF
Q4 2021
Q4 2022
Total
120,646
121,026
Completions
0
0
Conversions*
0
0
2022 Q4 Rent
Asking Change†
-0.2%
Effective Change†
-0.3%
Inventory: Constrabsorp
Q4 2021:
0 Ratio
Q4 2022:
0 Ratio
Rental Costs/Lease Rates‡
Asking
Q4 2021:
$1,082.46
Q4 2022:
$1,213.74
Effective
Q4 2021:
$1,043.26
Q4 2022:
$1,173.41
Gross Revenue
Q4 2021:
$1,040.68
Q4 2022:
$1,172.53
Absorption/Occupied Stock
Q4 2021:
0%
Q4 2022:
-0.2%
Stock Net Absorption (Units)*
Stock
*Units that have been converted from a non-market rate multifamily subtype to a market rate subtype. †Percent change from the previous time period. ‡For Apartment properties, rent is a weighted average quoted as monthly rent per unit.
Market Trends
Distribution / Warehousing
Inventory
Units/SF
Q4 2021
Q4 2022
Total
177,443,000
177,711,000
Completions
0
0
Conversions*
0
0
2022 Q4 Rent
Asking Change†
1.4%
Effective Change†
1.5%
Inventory: Constrabsorp
Q4 2021:
0 Ratio
Q4 2022:
0 Ratio
Rental Costs/Lease Rates‡
Asking
Q4 2021:
$4.64
Q4 2022:
$4.96
Effective
Q4 2021:
$4.41
Q4 2022:
$4.76
Gross Revenue
Q4 2021:
$4.30
Q4 2022:
$4.70
Absorption/Occupied Stock
Q4 2021:
0.5%
Q4 2022:
0.2%
Stock Net Absorption (Units)*
Stock
*Units that have been converted from a non-market rate multifamily subtype to a market rate subtype. †Percent change from the previous time period. ‡For Retail and Industrial properties, rent is a weighted average quoted as annual NNN rent per square foot.
Market Trends
Flex / R&D
Inventory
Units/SF
Q4 2021
Q4 2022
Total
11,436,000
11,436,000
Completions
0
0
Conversions*
0
0
2022 Q4 Rent
Asking Change†
1.4%
Effective Change†
1.4%
Inventory: Constrabsorp
Q4 2021:
0 Ratio
Q4 2022:
0 Ratio
Rental Costs/Lease Rates‡
Asking
Q4 2021:
$8.06
Q4 2022:
$8.50
Effective
Q4 2021:
$7.61
Q4 2022:
$8.09
Gross Revenue
Q4 2021:
$6.91
Q4 2022:
$7.41
Absorption/Occupied Stock
Q4 2021:
0%
Q4 2022:
0.3%
Stock Net Absorption (Units)*
Stock
*Units that have been converted from a non-market rate multifamily subtype to a market rate subtype. Negative value indicates a loss of market rate units, positive value indicates a repurposing to market rate rental units. †Percent change from the previous time period. ‡For Retail and Industrial properties, rent is a weighted average quoted as annual NNN rent per square foot.
Market Trends
Office
Inventory
Units/SF
Q4 2021
Q4 2022
Total
33,400,000
33,400,000
Completions
0
0
Conversions*
0
0
2022 Q4 Rent
Asking Change†
-0.1%
Effective Change†
-0.3%
Inventory: Constrabsorp
Q4 2021:
0 Ratio
Q4 2022:
0 Ratio
Rental Costs/Lease Rates‡
Asking
Q4 2021:
$19.78
Q4 2022:
$19.83
Effective
Q4 2021:
$15.38
Q4 2022:
$15.55
Gross Revenue
Q4 2021:
$15.69
Q4 2022:
$15.72
Absorption/Occupied Stock
Q4 2021:
-0.2%
Q4 2022:
-0.7%
Stock Net Absorption (Units)*
Stock
*Units that have been converted from a non-market rate multifamily subtype to a market rate subtype. †Percent change from the previous time period. ‡Office properties are a weighted average quoted as an annual gross rent per square foot.
Market Trends
Retail
Inventory
Units/SF
Q4 2021
Q4 2022
Total
16,772,000
16,772,000
Completions
0
0
Conversions*
0
0
2022 Q4 Rent
Asking Change†
0.1%
Effective Change†
0.1%
Inventory: Constrabsorp
Q4 2021:
0 Ratio
Q4 2022:
0 Ratio
Rental Costs/Lease Rates‡
Asking
Q4 2021:
$16.92
Q4 2022:
$16.98
Effective
Q4 2021:
$14.33
Q4 2022:
$14.39
Gross Revenue
Q4 2021:
$14.51
Q4 2022:
$14.49
Absorption/Occupied Stock
Q4 2021:
0%
Q4 2022:
0%
Stock Net Absorption (Units)*
Stock
*Units that have been converted from a non-market rate multifamily subtype to a market rate subtype. †Percent change from the previous time period. ‡For Retail and Industrial properties, rent is a weighted average quoted as annual NNN rent per square foot.