Downtown Cleveland Alliance has just released their quarterly residential and commercial market update for the city's central business district. Included is a detailed analysis of market trends and developments, as well as highlights of downtown's most exciting completed and ongoing projects.
Read the full report here.
Key takeaways:
Housing
- 457 brand new units came online, representing 9.7% growth
- 1,133 housing units will come online in the next 24 months, representing a 21% increase
- Per-square-foot rents increased from $1.14 to $1.20
- 11 straight quarters of 95% housing occupancy
- Condo sales prices up 25% per square foot
- DCA projects downtown population to reach 15,000 by the end of 2015
Hotels & Tourism
- 1,787 hotel rooms coming online by 2016, representing a 50% increase
- The Global Center for Health Innovation is set to open to the public in summer 2014
Offices
- The Cleveland Convention Center has hosted more than 100 events in the six months since its opening
- Major surge in office vacancy absorption in 4Q2013 - 255,000 - more than Pittsburgh, Washington, D.C., and Portland
- Ernst & Young Tower, the city's newest skyscraper, reaches 90% occupancy only six months after opening
- Total downtown vacancy is down to a three-year low of 18.2% despite Eaton Corporation moving its 250,000 square foot headquarters to the suburb of Beachwood
Most remarkable is the continued growth in demand for downtown housing products. Despite the supply increasing at a consistent 10% per year, per-square-foot rents have not fallen, even as rents fall in the suburbs. This indicates that the demand for urban living in this region is here to stay and is only going to become more popular.
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