While the COVID-19 pandemic has in some cases disrupted what was a strong commercial real estate market in Downtown Cleveland, the news is still promising for retail, office and industrial sites in Northeast Ohio. Here are a few factors driving the positive momentum.
1. Major Employers Are Committed to Cleveland
Corporations like Sherwin Williams and Rocket Mortgage are just two examples of large firms that have strengthened their commitment to Downtown Cleveland real estate with major announcements.
Sherwin Williams is building a new 1 million square foot corporate headquarters downtown, along with a half million square foot research and development facility in Brecksville.
Rocket Mortgage said earlier this year that it plans to add more than 700 jobs to its Downtown Cleveland office.
Announcements like these contribute to what the Downtown Cleveland Alliance (DCA) calls a “virtuous cycle,” as major employers commit to the center city’s place-based work culture.
2. Multifamily Investment Hasn’t Slowed Down
Going hand in hand with a surge in downtown jobs is a new batch of prospective downtown residents.
“We’re seeing talent drawn to Downtown Cleveland for its big city amenities, quality housing at affordable rates, and opportunities to advance their careers,” said Michael Deemer, Executive Vice President of Business Development at DCA. “This is an exciting time to live and work in our city’s core.”
More than $770 million in construction is currently underway or planned to begin 2021, according to DCA, including 75 Public Square, City Club Apartments and the Centennial. More apartments are expected. For example, the buyer of 55 Public Square office tower is planning a partial conversion to apartments.
As Ohio’s largest residential city center, experts say Cleveland continues to be an attractive place to live. The city recently appeared on a Forbes list of “Top Housing Markets to Watch In 2021” due to its affordability in an era of remote work.
3. State and Local Incentives Encourage Growth
Incentives and financing from the city, county and state contribute to a healthy commercial real estate market in Downtown Cleveland. Various offers are available to encourage businesses to create jobs and make capital investments in the city center.
The City of Cleveland offers several grants and loans to attract businesses. Cuyahoga County offers a financial incentive to companies to create new jobs by relocating to the county. And at the state level, JobsOhio, the state’s private nonprofit corporation, offers multiple incentives in the form of loans, grants and tax breaks.
4. Industrial Demand Is Strong
It’s still unclear what the long-term impact of the pandemic will be on the downtown office and retail estate market. Will office policies change permanently? Will shops and restaurants reopen? There’s no definitive answer yet, but it’s clear demand was solid for manufacturers, freight haulers, and professional and business services firms in the fourth quarter of 2020, according to the Cushman & Wakefield Q4 2020 Cleveland Industrial Marketbeat Report. It’s a positive sign. Pre-pandemic, experts indicated that ecommerce was a big driver of the industrial real estate market in Cleveland with Amazon distribution centers playing a role.
As the pandemic wanes, CRESCO Real Estate looks forward to a continued vibrant commercial real estate market in Downtown Cleveland. Contact us to discuss these trends and any of your questions about buying or leasing Cleveland office, retail or industrial space.
To learn more about how CRESCO, Greater Cleveland’s leading commercial real estate company, can help you with your property needs, contact us at 216.520.1200, or fill out the form below. A CRESCO professional will contact you shortly.