THE STATE OF DOWNTOWN CLEVELAND 2015

www.downtowncleveland.com 1

THE STATE OF DOWNTOWNCLEVELAND 2015

#StateofdtCLE2

Downtown Cleveland’s population is on the upswing. Since 2000, Downtown

Cleveland’s residential population has increased more than 79% following the

national trend of residents moving into walkable, amenity rich neighborhoods

with access to public transit and a deep pool of jobs. This resurgence

of Downtown Cleveland’s population has fueled the $6 billion dollars of

investment that has led to an increase in retail and amenities in our central

business district, which in turn creates even more reasons for businesses to

choose a downtown address. In fact, in 2015 alone, 52 businesses relocated

or recommitted to Downtown Cleveland, creating and retaining over 5,000 jobs.

Downtown Cleveland has come a long way in the 10 years since property

owners and other business and civic leaders founded DCA, and the energy and momentum in Downtown

Cleveland is rippling out into the surrounding neighborhoods. The 2015 State of Downtown report illustrates

this forward trajectory, and outlines the opportunities for growth as well as the challenges we still face in

meeting the demands of this growing population and continuing the positive impacts of Downtown on the

City of Cleveland and the region.

Sincerely,

Joseph A. Marinucci

President & CEO,

Downtown Cleveland Alliance

@ D w n t o w n C L E@ D o w n t o w n C L Ef a c e b o o k . c o m / D o w n t o w n C l e v e l a n d A l l i a n c e Yo uTu b e . c o m / D w n t w n C L E

W W W.DOWN T OWNCLE VEL AND.COM | 2 16.736.7 799

#StateofdtCLE2


TABLE OF CONTENTSBOARD OF DIRECTORS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

DCA OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

STEP UP DOWNTOWN & HISTORIC DOWNTOWN . . . . 6 - 7

DOWNTOWN DASHBOARD. . . . . . . . . . . . . . . . . . . . . . . . . 8-9

DEVELOPMENT & INVESTMENT . . . . . . . . . . . . . . . . . . . 10-11

WATERFRONT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12-13

MAJOR DEVELOPMENTS . . . . . . . . . . . . . . . . . . . . . . . . . 14-15

CLEAN & SAFE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16-17

DOWNTOWN RESIDENTS & FAMILIES . . . . . . . . . . . . . 18-19

HOUSING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

OFFICE MARKET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21-23

DOWNTOWN TALENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

HOSPITALITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

RETAIL & AMENITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . 26-27

MOBILITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28-29

HOW THIS REPORT CAN WORK FOR YOU . . . . . . . . . . . 30

SOURCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31


#StateofdtCLE4

Doug Miller, The Richard E. Jacobs Group, Chair

Jonathan Sandvick, Sandvick Architects, Vice Chair

John F. Herrick, Realty Investors Corporation, Vice Chair

Mark Stornes, Arthur Middleton Capital Holdings, Treasurer

Adam Fishman, Fairmount Properties, Secretary

Art Falco, Playhouse Square, Immediate Past Chair

TJ Asher, Weston, Inc. *

William Bolton, Property Operations, LLC*

EJ Burke, Key Bank

Fred Geis, Geis Companies

Richard Greco, Ernst & Young

David Hartt, D.B. Hartt, Inc.

Kira Hennessey, Squire Patton Boggs

David Jenkins, The Cleveland Browns *

Catherine Kilbane, The Sherwin-Williams Company*

Len Komoroski, The Cleveland Cavaliers

Neil Mohney, Forest City, Inc.

Ray Mueller, Medical Mutual

Karen Paganini, K&D

Zachary Paris, Jones Day, retired *

Boyd Pethel, First National Bank

Frank Sinito, Millenia Companies

Daniel P. Walsh, Citymark Capital

William West, Hanna Commercial Real Estate *

Directors Emeritus

Thomas Adler, PSF Management Company

John Carney, Landmark RE Management

John Ferchill, The Ferchill Group

David Goldberg, Edgerton Properties

Allan Krulak, Forest City, Inc., retired

Donna Luby, Self-Funded Plans, Inc.

Ex-Officio Directors

Ronald Berkman, Cleveland State University

Joseph Roman, Greater Cleveland Partnership

*Executive Committee Member

DOWNTOWN CLEVELAND ALLIANCE BOARD OF DIRECTORS

DOWNTOWN CLEVELAND IMPROVEMENT CORPORATION BOARD OF DIRECTORSJoseph Calabrese, GCRTA, Chair

TJ Asher, Weston Inc., Vice Chair

Antonin Robert, globalX, Vice Chair

Renee Evans, Harbor Group, Treasurer

Thomas Einhouse, PSF Management Company, Secretary

William West, Hanna Commercial Real Estate, Immediate Past

Chair & Director Emeritus

Joseph Bobeck, Great Lakes Financial Group

Steven Calabrese, CRM Companies

Michael Carney, Landmark RE Management

Roger Carran, Bassichis Real Estate

Joseph Cimperman, Cleveland City Council

Thomas Coyne, Thompson Hine

Melissa Ferchill, MCM Company

Damon Frangos, The Frangos Group / USA Parking

Grace Gallucci, NOACA

Tony George, The George Group

Michael Gersper, Hyland Software

Mark Giuliano, Old Stone Church

Valarie McCall, City of Cleveland Office of the Mayor

Douglas Miller, The Richard E. Jacobs Group

John Roeser, American Landmark Properties

Martin Rodriguez, PNC Real Estate

Paul Shaia, Victory Properties, Inc.

Directors Emeritus

John Coyne, Ampco System Parking

Donna Luby, Self-Funded Plans

Lou Frangos, The Frangos Group/ USA Parking

Jerome Schmelzer, Schmelzer & Assoc.


Downtown Cleveland Alliance has served ten years as the only organization focused exclusively on making Downtown Cleveland the region’s most compelling place to live, work and play.

As an Alliance, DCA does not work alone. DCA works with many allies—property owners, neighborhood partners, public officials, residents, commercial real estate professionals, business leaders, entrepreneurs, young professionals, foundations and other civic leaders—to advance Downtown’s growth and development.

As the logo illustrates, DCA acts as the thought leader, strategist, tactician, convener, connector and advocate that works to put together the puzzle pieces of a strong, vibrant Downtown. Other times, DCA is the glue that holds the puzzle pieces in place, acting as the voice of the community and an advocate on issues, affecting downtown.

DCA’s flagship programs are its Clean & Safe Ambassadors and Business Development Center. DCA also works to activate and market Downtown’s many public spaces through events, public realm enhancements and other initiatives.

CONNECTING DOWNTOWN CLEVELAND

Downtown Cleveland

First Energy Stadium

Rock+ Roll Hall of Fame & Museum

Burke Lakefront A

irport

Public Square

Cleveland State University

Flats East Bank

Quicken Loans Arena

Playhouse

Square

The act of allying or state of being allied. A merging of efforts or interests by persons, families, states, or organizations

AllianceNoun [uh-lahy-uh ns]

Detroit Shoreway

Ohio City

Tremont

Central

Midtown

Asia Town

and surrounding neighborhoods

#StateofdtCLE6

IT’S TIME TO MAKE A MOVEThe State of Downtown Cleveland through the lens of Economic Development

#StateofdtCLE6


“The building we’re in is on the historic register and has this enormous, textured history. It really fits in well with our company culture and personality.”

Jennifer Kile, Director of Operations BrownFlynnDowntown Cleveland

• Cleanliness and Safety• Business Attraction and Retention• Historic Redevelopment• Resident Quality of Life• RNC• Public Square• Transportation• Advocacy

Step Up Downtown is the vision and tactical plan that guides DCA’s economic development strategy. The plan identifies connectivity as the key to leveraging Downtown Cleveland’s momentum. By addressing the gaps in the public realm that keep pedestrians from experiencing Downtown as a continuous urban fabric, and by linking current nodes of activity with points of interest, Downtown will continue to evolve into the vibrant, walkable environment that is most attractive to businesses and their employees. The ultimate goal is to fill 3 million SF of vacant office space with jobs and to continue the growth Downtown’s population to 25,000 residents. Consistent with the Step Up Vision, DCA’s 2016 priorities are:

STEP UP DOWNTOWN

HISTORIC DOWNTOWNOhio Historic Preservation Tax Credit financing has transformed Downtown Cleveland into a vibrant neighborhood that connects the past, present and future. The continuation and improvement of this financing tool is DCA’s highest advocacy priority.

From 2008 to 2015, $157 million in Ohio Historic Preservation Tax Credits helped Downtown Cleveland:

37 PROJECTSComplete

$1.1 BILLIONin additional public and private investment

5.8 MILLION SFof commercial space to residential space

1 MILLION SFfor commercial use

166,739 SFinto retail space.

3,640 APARTMENTS

Leverage

Modernize

Add

to the market

Convert

Convert


#StateofdtCLE8

$6 BILLIONin investment (2008-2015)

GETTING TO KNOW NORTHEAST OHIO

97% Market Rate Apartment Occupancy

new apartments plannedor under construction

3,31579% POPULATION

INCREASE 2000-2015#StateofdtCLE8


16.3% Class A Office Vacancy

Acres of Recreational Waterfront

26Downtown Cleveland

are home to

41,000 Residents130,000 Jobs

5,000

& retained in 2015

jobs created

GETTING TO KNOW DOWNTOWN CLEVELAND

and surrounding neighborhoods


#StateofdtCLE10

STATE OF DOWNTOWN DEVELOPMENT & INVESTMENTDowntown Cleveland is experiencing an impressive investment cycle of over $6 billion since the launch of the HealthLine in October 2008. Strong public-private partnerships will continue to be necessary to ensure that the current pipeline of projects and the next wave of major developments are completed.

• $475 million in investment

• 30,000 SF grocery store

• 4,200 SF men’s and women’s active wear store

• 7,500 SF home furniture store

• 573 new residential units

• Conversion of 493,453 SF of commercial space into residential units

In 2016, 13 projects will be completed and an additional 16 projects in the planning stages are projected to be completed by the end of 2017. These projects represent:

In 2015,13 development projects were completed in Downtown Cleveland, representing:

COMPLETED IN 2015

29 PROJECTS PLANNED TO OPEN 2016-2018

INCREASING INVESTMENT IN DOWNTOWN CLEVELAND

20082009

20102011

20122013

20142015

20162017

2018

161412108642

4 4 42

911

1314 14

8

4

Num

ber o

f Pro

ject

s St

arte

d or

to S

tart

$3

mill

ion

or m

ore

in in

vest

men

t

YEAR

TYPES OF INVESTMENT IN DOWNTOWN

Hotel

Health

Education

Tourism/Entertainment

Infrastructure

Office

Recreation

Mixed Use

4%3%

10%

10%

11%

12%15%

36%

• Over $3.5 billion in investment• 1,500 hotel rooms• 3,315 residential units• Conversion of 1,000,000 SF of commercial space into residential units• 350,000 additional SF of office space

* see page 11 for list of 29 projects


1. NuCLEus Project

2. Standard Building

3. 925 Euclid

4. The Edge

5. Garfield Building

6. Leader Building

7. Worthington Building

8. Cleveland Athletic Club

9. Weston Citymark

10. Halle Building

11. 75 Public Square

12. Lakefront Pedestrian Bridge

13. Stuyvesant Block (City Blue Building)

14. Campus International School

15. John Hartness Brown Building

16. North Coast Harbor Apartments

PLANNED TO BE COMPLETED 2017-20181. I-90 Innerbelt Bridge (Phase 2)

2. West Shoreway Boulevard conversion

3. East 22nd Streetscape

4. Public Square Renovations

5. Hilton Convention Center Hotel

6. Schofield Hotel

7. Southworth Building

8. Drury Plaza Hotel

9. Heritage Hall

10. Progressive Field Renovations

11. Rock and Roll Hall of Fame Plaza

12. Nuevo Mod Mex

13. Playhouse Square, Ohio Theatre

OPENING IN 20161. The Ivory on Euclid

2. Flats East Bank Phase II

3. The Creswell at Playhouse Square

4. St Vincent Charity Hospital Renovation

5. Cleveland State University, Center for Innovation in Medical Professions

6. FirstEnergy Stadium Modernization

7. Care Alliance Central Neighborhood Clinic

8. Merwin's Wharf

9. Playhouse Square, State Theatre

10. Residences at 1717

11. Heinen's Grocery Store

12. Corner Alley Downtown

13. Cleveland Rowing Foundation Rivergate Park

2015 COMPLETED PROJECTS

12

3

4

5

6

7

8

910

11

13

1

2 3

4

5

67

8

9

10

1

2 3456

78

91011

12

13

14

15

13

12

FirstEnergy Stadium

Rock+ Roll Hall of Fame & Museum

Burke Lakefront A

irport

Public Square


Flats East Bank

Quicken Loans Arena

Playhouse

Square

1112

13

16

Downtown Cleveland

#StateofdtCLE12

FLATS EAST BANKdining and entertainment venues14 20-ACRE

Canal Basin Park to be a

park on the river of recreational waterfront 26

Downtown currently home to more than

CUYAHOGA RIVERThe Flats is 2015’s largest development project which continues to grow in 2016. River-front dining, water-side boardwalks and bike paths make this neighborhood a perfect summer time hangout.

ROCK & ROLL HALL OF FAME AND MUSEUM

GREAT LAKES SCIENCE CENTER

THE GREAT LAKES’ ONLY FLOATING HEADQUARTERS

VOINOVICH PARK

ROCK N DOCKPADDLE BOAT & JET-SKI RENTAL PROVIDER

DOWNTOWN CLEVELAND’S

ONLY MARINA

NORTH COAST HARBORDCA partners with the city’s Department of Port Control to manage and program North Coast Harbor. North Coast Harbor is a quickly changing neighborhood. Construction on the Trammel Crowe & Cumberland Development’s 28-acre project began in late 2015 and will include 1,000 apartments, up to 750,000 SF of office space, Nuevo Mod Mex Restaurant and a pre-school through eighth grade school.


$1.8 BILLIONIN ECONOMIC ACTIVITY

60% INCREASE (200

8-20

14)

PORT RELATED JOBS UP 60% (2

010-

2014

)

82% INCREASEIN BULK TONNAGE SHIPPED (2

008-

2014

)

DCA partners with the Port Authority to provide Clean and Safe Ambassador Services to remove debris from the Cuyahoga River and North Coast Harbor. The Port Authority spent $8 million in 2015 to upgrade infrastructure to meet increasing demand for import and export shipping.

CUYAHOGA COUNTY PORT AUTHORITY

WATERFRONT

#StateofdtCLE14

MAJOR DEVELOPMENT PROJECTS |UNDER CONSTRUCTION

PUBLIC SQUARE

FLATS EAST BANK PHASE II

HILTON CLEVELAND DOWNTOWN

$395 million in waterfront and transit oriented development• Phase II completed in 2015• Project includes 500,000 SF EY Tower, Aloft Hotel,

more than 240 apartments and 14 Restaurants and entertainment venues

• Diversity & Inclusion Goal: 30 percent of contracts awarded to small, female- or minority-owned business enterprises (S/F/MBE)

• D & I Result: 31.8 percent, $17.4 million awarded to S/F/MBE

$272 million development • Project includes 600 hotel

rooms adjacent to the Cleveland Convention Center, 2 bars and 2 restaurants

• Diversity & Inclusion Goal: 52 percent of contracts awarded to S/F/MBE

• D & I Result: 68.1 percent, over $119 million awarded to S/F/MBE

$50 million renovation• Project includes 5 acres of park space, indoor/outdoor café, splash park/ice

skating rink, Soldiers’ & Sailors’ Monument• 3,904 SF of seating • 220 trees


MAJOR DEVELOPMENT PROJECTS | PLANNED

925 EUCLID

WESTON CITYMARK

nuCLEus

$400 million development• Project includes 200,000-300,000 SF of

office space, 500 housing units, 150,000 SF of retail space

$280 million transit oriented development• Project includes 673 apartments, 279 hotel rooms, 150,000 SF

of office space, 42,289 SF of retail space, and 80,000 SF of business incubator space.

$400 million development• 3 million SF project to be built in four phases• Project includes1,200 apartments and100,000 SF

of retail space• Phase 1 to break ground in 2016 will include the

first 352 apartments

#StateofdtCLE16

LIVEWORKPLAYHere’s what Downtown Cleveland looks like today

“I feel safer walking around the streets of Cleveland, especially at night, now that I know there are people looking out for my well-being. I look forward to seeing more of your [ambassadors] on the streets, and I will be sure to tell them thank you and to keep up the hard work.” Steve VeseyDowntown Cleveland

#StateofdtCLE16


KEEPING CLEVELAND CLEAN & SAFE

The Clean and Safe Ambassadors are more prominent than ever in 2016, preparing and maintaining Downtown Cleveland for the national spotlight of the Republican National Convention. More than 65 Downtown Cleveland Alliance Ambassadors are out and about from 7 a.m. to 12 a.m. seven days a week and can be reached at 216-621-6000.

DCA AMBASSADORS: AT YOUR SERVICE

PROVIDED 3,620 SAFETY ESCORTS

• All DCA ambassadors are equipped with smart phones to assist people with directions to a specific location or event.

• Safety ambassadors are trained to work with the homeless. They can call the on-staff social work professional to work one-on-one with homeless individuals in need.

• Ambassadors are prepared to assist motorists with flat tires, car lockouts and jump starts, as well as provide safety escorts to downtown destinations.

• Ambassadors are prepared to assist pedestrians with hospitality advice, directions and aggressive panhandlers.

IN 2015, DCA AMBASSADORS:

ASSISTED 57,701 VISITORS

ASSISTED 2300 MOTORISTS

REMOVED 7,767incidences of graffiti

COMPLETED 2,123 HOURSof power washing

REMOVED 619,684 POUNDSof trash from Downtown Cleveland

DID YOU KNOW?


#StateofdtCLE18

STATE OF DOWNTOWN: RESIDENTSDowntown’s population of 14,000 increased 79 percent between 2000 and 2016, and is projected to reach over 18,000 by the end of 2018 based on housing developments that are currently planned or under construction.

GENDER20-24

25-34

35-44

45-54

55-64

65 and over

879

1462

1066

637

278

264

1203

2411

1024

835

704

179

2000 2014680

825

441

333

237

320

1162

1639

584

428

311

292

Male Female

2000 2014 RACE OF DOWNTOWN RESIDENTS

White Alone

Black or African American

Asian Alone

Two or more races

Some other race

47.8%40.1%40.1%

47.8%

1139

1200

1422

1282

2704

1442

1806

1865

1798

3663

27%

51%

31%

40%

35%

High School

Some College or Associates Degree

Bachelor’s Degree

Graduate/Professional Degree

Total of those with Bachelor Degree and Higher

EDUCATION LEVELS OF DOWNTOWN RESIDENTS 2010 2014(AGE 25+) PERCENT CHANGE (2010-2014)

Under 5 years

5-9 years

10-14 years

15-19 years

20-24 years

25-34 years

35-44 years

45-54 years

55-64 years

65+ years

236

98

143

627

2041

3743

1231

1194

873

400

464

283

152

970

2365

4049

1607

1262

1018

473

97%

189%

6%

55%

16%

8%

31%

6%

17%

18%

AGE

Below $35,000

$35-50,000

$50-75,000

$75-100,000

$100-150,000

$150-200,000

Above $200,000

2504

565

774

436

352

48

126

3236

490

850

604

454

197

355

29%

-13%

10%

39%

29%

310%

182%

HOUSEHOLDS WITH INCOME:

AGGREGATE INCOME

AVERAGE HOUSEHOLD INCOME$231,126,584 $372,998,704 61%

$44,914 $60,297.24 34%


STATE OF DOWNTOWN: FAMILIES

With the increase of children under the age of 14 now calling Downtown Cleveland home, a great neighborhood is developing into a family-friendly community. This growth is helping Downtown Cleveland overcome the perception that Downtown is home to only young professionals and those living alone.

Emerging trends show families are choosing to stay in Downtown Cleveland. Current population data illustrates the need for developers, lenders and investors to consider larger units in residential buildings.

DEVELOPMENT OPPORTUNITIES

Campus International SchoolKindergarten through seventh grade school that earned a high performing rating from the Cleveland Transformation Alliance. Operated by Cleveland Metropolitan School District in partnership with CSU, the curriculum offers international baccalaureate classes. Soon to include a high school component, construction began in early 2016 and is scheduled to open in Fall 2017. Currently there are 535 students enrolled and a waiting list for additional students.

MC2 STEM High School A high school that earned a high performing rating from the Cleveland Transformation Alliance. Ninth grade students convene and take courses at the Great Lakes Science Center; and the tenth grade meets at the GE Lighting’s corporate headquarters in East Cleveland. Eleventh and twelfth grade courses take place at Cleveland State University. There are 405 students currently enrolled in this school.

DOWNTOWN CLEVELAND FAMILY AMENITIESCurrently Downtown Cleveland has three early learning centers highly rated by the state and five schools rated highly by the Cleveland Transformation Alliance. Quality education options in Downtown Cleveland include:

Downtown Cleveland parents and children can enjoy family programming at the Greater Cleveland Aquarium, Great Lakes Science Center, Playhouse Square and the Rock & Roll Hall of Fame and Museum, as well as all three major sports teams in Downtown Cleveland. Progressive Field, home of the Cleveland Indians, was recently named the most family friendly ballpark in Major League Baseball.

EMERGING TRENDSBetween 2010 and 2014, the number of children and 35 to 40 year olds increased, reversing the previous decline.

ESTABLISHED TRENDSBetween 2000 and 2014, Millennials and Baby Boomers led the growth in Downtown Cleveland’s population.

IN POPULATION OF 35-44YEAR OLD RESIDENTS

31% INCREASE INCREASE IN CHILDREN AGES 0-5 YEARS OLD

INCREASE IN CHILDREN AGES

5-9 POPULATION OF WOMEN AGES 20-34 YEARS OLD

HAS GROWN BY 86%

IN MILLENNIALS77% INCREASE

INCREASE IN BABY BOOMERS97%

#StateofdtCLE20

6,000

5,500

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

2011 20142012 2013

4,17

1

4,17

1

4,85

7

5,19

6

4,17

1

4,19

3

4,93

6

5,19

6

4,17

1 4,63

6 5,16

2

5,45

9

4,17

1

4,70

5

5,16

2 5,56

5

100%

95%

90%

85%

80%

75%

70%

65%

60%

55%

2015

5,56

55,

543

5,78

5

5,87

0

Since 2011, Downtown Cleveland has continually added new residential units while still increasing the overall residential occupancy of the city center.

95.90% 96.20% 95%97.80% 97%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Between 2011 and the end of 2015, Downtown Cleveland added 1,700 apartments while maintaining 95-98 percent occupancy. Although rents have strengthened since the end of the recession, increasing construction costs continue to make strong public-private partnerships necessary to ensure planned projects are completed. Increasing demand for owner-occupied housing, best illustrated by the 97 percent increase among 55-64 year olds since 2000, represents a major opportunity for housing developers.

STATE OF DOWNTOWN: HOUSING

RENTAL RATESAverage Rent Per Month for a One Bedroom

Average Rent Price per SF

$786

$1.08

$1017

$1.32

2011 2015

FOR SALE UNITSAverage Sale Price per unit

Average Sale Price per SF

$249,550

$177.76

$259,287

$207.80

2011 2015

• Currently 14,000 residents

• Completion of the 3,315 housing units under construction or planned will grow the downtown population to an estimated 18,000 residents by the end of 2018.

• 1,700 units added (2011-2015)

• 5,870 total market rate apartments

• 880 condominiums and town-homes

• 969 units under construction

• 2,346 units planned for delivery (2016-2018)

DOWNTOWN HOUSING MARKET

Num

ber o

f Ren

tal U

nits

in D

ownt

own

Cle

vela

nd

DOWNTOWN CLEVELAND RENTAL UNITS AND RESIDENTIAL OCCUPANCY, 2011-2015


Downtown Cleveland has reduced office vacancy from 23.3 percent in Q1 2011 to 18.7 percent in Q4 2015. Downtown Cleveland is effectively attracting and retaining office tenants, but 3 million vacant SF remain, creating both challenges for the real estate market and opportunities for businesses seeking a downtown address that will enable them to better recruit and retain top talent.

“Our younger employees don’t want to go to a suburban office park. It’s boring as all get out there. Here they walk outside and see cool stuff and it’s fun. I wanted to be where they wanted to be.” Reg Shiverick, President of Dakota Software, Downtown Cleveland

STATE OF DOWNTOWN: OFFICE MARKET

Walkscore of Downtown Class A Office Buildings

TransitScore of Downtown Class A Office Buildings

VACANCY RATES AND LEASE RATES FOR SIMILARLY-SIZED DOWNTOWNS IN REGION

Cleveland

Detroit

Cincinnati

Columbus

Indianapolis

Pittsburgh

28

27

26

25

24

23

22

21

20

19 $20.

88

16.3%

$21.

74

7.4%

$24.

73

18.2%

$22.

40

13.2%

$19.

51

17.1%

Class

A Le

ase R

ate pe

r SF

2015

$27.

50

7.2%

20%

18%

16%

14%

12%

10%

8%

6%

4%

2%

Class

A Va

canc

y Rate

SF of office space, including 8.8 million SF of Class A space15.8 MILLION

Downtown Cleveland has

Average Asking Lease Rate$20.98

Net Absorption106,000SFQ4Vacancy16.3%

CLASS A SPACE IN 2015:

#StateofdtCLE22

The following companies relocated, expanded or recommitted to Downtown Cleveland in 2015:

Citymark Capital

Cordell & Cordell

Fox Sports Ohio

Futuri

Gabriel Partners

PIRHL

RNC Offices

Siemens

Signet Capital Advisors

Spero-Smith Investment Advisors*

TopicPulse

The Gottlieb Organization

Svetlana Schreiber & Associates L.P.A

Group 4 Imaging

Lake Effect Studios

YellowLite

Blink Signs

Rebiz

Accenture

AECOM

Alexander Mann Solutions

American Interiors, Inc.

AmTrust

Arthur J Gallagher

Asurint

Austin Capital Partners

BakerHostetler

Benesch

BOMA Greater Cleveland

Cleveland Rape Crisis Center

Everest Land Title

Favorite Brother

GCA Services Group

Hartland & Co.

Intellinet

Lowe Eklund Wakefield Co.

National General Insurance

Navy Federal Credit Union

Newman & Company, CPAs

Nurenberg Paris Heller McCarthy

Penton Media, Inc

RBC Capital Markets LLC

Roetzel & Andress LPA

Sherwin Williams*

StartMart

Taft Stettinius & Hollister

Team NEO*

Thompson Hine*

Towers Watson

W.B. Doner & Company

Welty Construction

*2015 Members of Commission 50, recognized annually for progress in creating, enhancing and sustaining their diversity and inclusion strategies.

50 OFFICE TENANTS RECOMMITTED OR RELOCATED TO DOWNTOWN CLEVELAND IN 2015

Attraction

25%

24%

23%

22%

21%

20%

19%

18%

17%

16%

23.3

%

22.9

%

22.3

%

19.9

%

19.2

%

18.9

%

18.6

%

18.3

%

20.3

%

19.7

%

19.9

%

18.2

%

18.5

%

18.7

%

18.6

%

18.4

%

18.4

%

19.7

%

18.8

%

18.7

%

2011Q1 Q2 Q3 Q4

2012Q1 Q2 Q3 Q4

2013Q1 Q2 Q3 Q4

2014Q1 Q2 Q3 Q4

2015Q1 Q2 Q3 Q4

$20.00

$19.50

$19.00

$18.50

$18.00

$17.50

$17.00

$16.50

$16.00

$15.50

Leas

e R

ates

Vaca

ncy

Rat

es

DOWNTOWN CLEVELAND LEASE RATES CLIMB, AS VACANCY DECLINES

Retention or Expansion

STATE OF DOWNTOWN: OFFICE MARKET


STATE OF DOWNTOWN: HEALTH & TECHNOLOGY

OFFICE SPOTLIGHTS: STARTMART OFFICE SPOTLIGHTS: GLOBAL CENTER FOR HEALTH INNOVATION

Health & technology are increasingly key drivers of the Downtown Cleveland office market. In 2015, Downtown built upon its status as the region’s hub for technology-related entrepreneurism with the opening of StartMart, the second largest co-working and entrepreneurial hub in the U.S. Downtown also continued to take advantage of the Global Center for Health Innovation to attract health & technology leaders like the central zone headquarters for Siemens Global.

• Opened the second largest entrepreneurship and co-working hub in the U.S., Downtown’s Historic Terminal Tower.

• Offers new resources such as “StartPods,” which create an atmosphere where startups are empowered to test, iterate, fail and scale.

• Home to over 30 companies and startups, including the FlashStarts business accelerator and We Can Code IT.

• Only facility in the world that displays the future of health and health care. The Center advances health and health care innovation, technology, education and commerce through state-of-the-art spaces, programs and virtual offerings.

• Brings together the world’s leaders in health care technology, allowing them to connect, collaborate and create.

• Downtown home of HIMSS, Cleveland Clinic, University Hospitals, GE Healthcare, Hyland Creator of OnBase, Forbo, Siemens, MetroHealth, Johnson Controls, Sisters of Charity Health System, and Cardinal Health.

TECH AND HEALTH INDUSTRIES GROW IN DOWNTOWN CLEVELAND

• Fiber optic network gives tech and data intensive businesses a competitive advantage.

• 39 downtown office buildings are lit with 40 gb/s fiber service.

• 100 gb/s fiber service, the fastest commercially available service which is 100 times faster than Google Fiber, will be available in 2016.

FIBER FEEDS DOWNTOWN CLEVELAND TECHNOLOGY INDUSTRY

#StateofdtCLE24

STATE OF DOWNTOWN: TALENT AND EMPLOYMENTDowntown Cleveland’s strong talent base and employment growth fuel the office market. The most recently available data indicates that Downtown Cleveland employers increased employment 3.4 percent from 97,157 to 100,439 between 2011 and 2014. The Greater Downtown area experienced similar growth, increasing 5.5 percent from 124,098 to 130,902 during the same time period. This trend continued in 2015, with 53 employers committing to create or retain nearly 5,000 downtown jobs.

Businesses that locate in Downtown Cleveland give themselves a leg up over their peers in recruiting top talent. In a report published in conjunction with Cushman & Wakefield Real Estate and the George Washington University School of Business, Smart Growth America surveyed 500 business executives and concluded that talent recruitment and retention is a key consideration of businesses deciding to locate in a downtown. The Cleveland area ranks 8th in the United States, tied with Miami and Seattle, in the growth of college educated 25-34 year olds. Downtown experienced a 136 percent increase in the number of residents who hold a four year or advanced degree between 2000 and 2014. Moreover, Downtown’s close proximity to multiple higher education facilities helps connect downtown businesses with top talent.

LARGEST PRIVATE EMPLOYERS IN DOWNTOWN CLEVELAND

DOWNTOWN HIGHER EDUCATION FUNNELS TALENT INTO WORKFORCE

• 17,730 students enrolled at Cleveland State University

• Top 20 Online MBA Program, according to US News & World Report

• 10 percent increase in the number of engineering majors, 2008-2014

• 5,503 students enrolled at downtown campus of Tri-C

• Hospitality and Management Center trains chefs and hospitality staff

• Ranks 1st in Ohio and 25th in the nation in conferring associate degrees

KeyCorp

Sherwin-Williams

Rock Gaming

Medical Mutual Of Ohio

Ernst & Young LLP

Healthspan

Ohio Savings Bank

St Vincent Charity Medical Center

Huntington National Bank

JPMorgan Chase & Co

4,812

3,430

2,080

1,800

1,178

1,103

841

837

785

736

CLEVELAND STATE UNIVERSITY CUYAHOGA COMMUNITY COLLEGE


REPUBLICAN NATIONAL CONVENTION

STATE OF DOWNTOWN: HOSPITALITYDowntown Cleveland is growing as a tourist and entertainment destination. The hotel market will add an additional 900 rooms in 2016,

bringing the total number of downtown hotel rooms to 4,853.

TO DOWNTOWN CLEVELAND50,000 VISITORSTHE REPUBLICAN NATIONAL CONVENTION WILL BRING

15,000 MEDIA PERSONNEL COVERING THE CONVENTIONUTILIZE THE 225,000 SF STATE OF THE ART CLEVELAND CONVENTION CENTER AS THE CONVENTION’S MEDIA CENTER

Cleveland is well-known for its professional sports and as the home of the 2016 RNC. Less well-known is Cleveland’s dynamic arts scene. In 2015, Cuyahoga County voters renewed a tax on tobacco sales, a revenue source that helps place Cleveland ahead of cities like Boston, Chicago, Miami, Philadelphia and Portland in per capita public funding for the arts.

ARTS & CULTURE

• Attracts over 1 million visitors per year• 10,000 seats + 10 performance spaces = 2nd largest performing arts center in U.S.• 32,000 Key Bank Broadway Series season ticket holders is the largest subscription base in the

U.S.• One of only 5 cities to offer Broadway Series shows for 3 weeks• Home to the Cleveland Play House, the 2015 Tony Award Winner for Best Regional Theater

Playhouse Square

Music & Film

SPORTS & GAMING

• Cleveland Browns, Cavaliers and Indians attract over 3 million annual visitors to their walkable downtown venues

• Hosting the 2015 NCAA Men’s Basketball Sweet 16 pumped $5 million into the local economy

• American Hockey League Lake Erie Monsters affiliated with the National Hockey League’s Columbus Blue Jackets

• JACK Casino: 13.2 million visitors and nearly 100,000 hotel rooms booked (2012-2015)

• Cleveland International Film Festival, recognized by USA Today as the 2nd best film festival in the U.S., attracts over 100,000 annual visitors

• Jacobs Pavilion @ Nautica named one of top 7 outdoor concert venues in U.S.

• Rock and Roll Hall of Fame & Museum brings $107 million in annual economic impact

#StateofdtCLE26

STATE OF DOWNTOWN: RETAIL & AMENITIES2015 MAJOR DOWNTOWN RETAIL WINS

The 5th Street Arcades offers unique,

authentically Cleveland shopping and

dining experiences. Dating back to 1898,

the 5th Street Arcades is now home to

more than 40 retailers, including men’s

and women’s apparel, a pet supply shop

and several ethnic eateries.

GEIGERSGeiger’s, a locally owned 83-year-old

retailer of men’s and women’s clothing,

active-wear and footwear, opened at

the end of 2015. The store has several

locations in the region and this is their first

Downtown Cleveland store, capitalizing

on the growth of Downtown’s residential

population.

HEINEN’S FINE FOODSHeinen’s Fine Foods, a locally

owned 87-year-old grocer with

locations in Greater Cleveland

and Chicago, opened their first

Downtown Cleveland store in

early 2015. The 30,000 SF store

employs 100 people. Owners

recently reported that the

prepared foods are some of their

most popular products.

5TH STREET ARCADES

METRO HOMEMetro Home, a local

contemporary furniture gallery

that has successfully served

the North Eastern Ohio area

throughout the last 40 years,

put down roots in Downtown’s

NineTwelve District in 2015. The

store is located in the Residences

at 1717.


36 NEW RETAILERS OPENED IN 2015

• 41,082 residents in Downtown’s retail trade area

• 35.5 percent of residents aged 20-34

• 30.7 percent hold four year or advanced college degree

• $884,311,256 aggregate income

• 23 percent increase in aggregate income, 2011-2014

• $47,048 average household income

• 19 percent increase in average household income, 2011-2014

The aggregate spending power surrounding Downtown Cleveland continues to increase as the population of the area grows. Since 2011, the spending power of Downtown’s retail trade area has increased by more than $100 million.

Parker Hannifin Downtown YMCA

Ruth’s Chris Steakhouse

Play by Color Nation

Insomnia Cookies

Buffalo Wild Wings

Mabel’s BBQ

Coastal Taco

Bloom Bakery

Yours Truly

The Burnham at Hilton Cleveland Downtown Hotel

The Lobby Bar at Hilton Cleveland Downtown Hotel

The Noshery at Hilton Cleveland Downtown Hotel

Bar 32 at Hilton Cleveland Downtown Hotel

Parker's Downtown at The Schofield Hotel

NATIONAL BRANDS IN DOWNTOWN CLEVELANDCVS Pharmacy

Victoria’s Secret

Starbucks

Dunkin’ Donuts

Brooks Brothers

Chipotle

Potbelly

Bath and Body Works

Subway

Jimmy Johns

Buffalo Wild Wings

Pizza Hut

Payless Shoes

Sherwin-Williams

American Greetings

DOWNTOWN RETAIL OPENING IN 2016Heinen’s Fine Foods

Rising Star

NutriFit

Geiger’s

CLE Pets

Bombay Chaat

Punch Bowl Social

FWD Day & Nightclub

Big Bang Dueling Piano Bar

Crop Rocks

Crop Sticks

Alley Cat Oyster Bar

Bold Food & Drink

Beerhead

Flip Side

Pizza Fire

10PM Studio

Helio Terra

Blue Edge

Metro Home

Edible Arrangements

Restore Cold Pressed

Blazin Bistro

We Bleed Ohio

Pizza 216

Rocket Fizz

Culture

L’Amour Du Noir

Vibe, A Wellness Studio

Santorini Greek Traverna

Barrio Gateway

Johnnyville Woods

Cleveland Fray

Happy Hour Collection

A Kitchen and Bar

Equal Exchange Coffee

STATE OF DOWNTOWN: RETAIL & AMENITIES

DOWNTOWN’S RETAIL TRADE AREA DEMOGRAPHICS

#StateofdtCLE28

STATE OF DOWNTOWN: MOBILITYDowntown Cleveland residents, office workers and visitors have more transportation options than those in other areas of the state. With easy access to two airports and an Amtrak station, Downtown Cleveland is perfectly situated for business travel. Cleveland is the only city in Ohio to boast light rail service and was the nation’s first to directly connect its airport to Downtown by rail.

The Greater Cleveland Regional Transit Authority (RTA) makes it easy for daily commuters to get downtown, servicing the area with multiple bus routes, four rapid transit lines, and two bus-rapid-transit systems.

WALKABLE DOWNTOWN• 94 and 89: Average Walkscore and Transit Score of Downtown Cleveland Class A office buildings• 89 and 84: Average Walkscore and Transit Score of Downtown Cleveland apartment buildings• 15: number of bars or restaurants within a 5 minute walk of downtown apartments & office buildings

• #1 Bus-Rapid Transit in North America, the HealthLine which connects Downtown Cleveland to the Cleveland Clinic and University Circle

• Cleveland State Line, new bus-rapid transit line connecting western neighborhoods and suburbs to Downtown Cleveland, in-creased ridership by 32% (2010-2015)

• “Free with a Smile” Downtown Trolleys arrive at stops every 10 minutes, 7 days a week (7am-11pm, M-F; 11am-11pm weekends)

DOWNTOWN CLEVELAND’S PUBLIC TRANSIT

2015 RTA Ridership

Downtown Trolley: 1,530,698

Overall: 47,025,879

HealthLine: 4,461,433

According to RTA’s 2013 On-Board Survey, young professionals ages 18-34 represent:

of Total RTA Ridership52% of HealthLine

Ridership57% of Downtown Trolley Ridership62%

Between 2010 and 2015:

RTA’s Overall Ridership grew by

HealthLine Ridership grew by

Downtown Trolley Ridership grew by

Cleveland State Line Ridership grew by


Downtown Cleveland Bike Rack offers the only full service station with lockers, shower facilities, secure storage and bike repair services in

Downtown. In 2016, 250 Downtown Bike Share Stations will launch under CycleHop-SoBi.

DOWNTOWN BICYCLING

DOWNTOWN AIR SERVICEDaily Cleveland-Cincinnati air service launched in 2015 at Burke Lakefront Airport (Ultimate Air Shuttle) Service may be expanded in 2016 to include New York and Chicago.

STATE OF DOWNTOWN: MOBILITY

#StateofdtCLE30

4 WAYS THIS REPORT

CAN WORK FOR YOU

The State of Downtown Cleveland is the most

comprehensive single source of information

about Downtown Cleveland. This report

is designed to update business leaders,

commercial real estate professionals, policy

makers, investors and journalists as they seek

information about Downtown Cleveland.

Access the tools and information you

need to relocate or expand your

business in Downtown.

1. Make a Move

Making good public policy requires

good information about the most up

to date trends, developments and

growth opportunities.

3. Guide Good Government

Enhance your reporting, researching

and recruiting with the story

of Downtown Cleveland.

4. Tell the StoryStart your next enterprise in

Downtown Cleveland to gain access

to the fastest growing educated workforce in Northeast Ohio, high

speed fiber connections and more.

2. Grow Commerce


Campus District Inc.

CBRE Cleveland Office MarketView

City of Cleveland, Department of Economic Development

Cleveland Transformation Alliance

Cleveland State University, Center for Population Dynamics

Colliers International Cleveland Office Research & Forecast Report

Commission on Economic Inclusion | Project Owners Current Building Projects Reports

Crain’s Cleveland Business Book of Lists

Cuyahoga Community College

Downtown Cleveland Alliance 2015 Retail Survey

Downtown Cleveland Alliance Quarterly Market Updates 2011-2015

Destination Cleveland

Fortune Magazine

Greater Cleveland Partnership

Greater Cleveland Regional Transit Authority

Historic Warehouse District

Historic Gateway District

International Downtown Association, Defining Downtown

JobsOhio

Jones Lang LaSalle Cleveland Office Insight

Newmark Grubb Knight Frank Cleveland Office Market Report

Ohio Department of Job & Family Services, Labor Market Review

Ohio Department of Job & Family Services, Step Up to Quality

Rock & Roll Hall of Fame and Museum

Smart Growth America

TeamNEO

U.S. Census 2000 & 2010

U.S. Census 2010-2014 American Community Survey 5 year estimate

U.S. Census On The Map Application: LEHD Origin- Destination Employment Statistics

USA Today

Walkscore.com

Xceligent

Sources:

#StateofdtCLE32

KeyBank National Association

Ohio Savings Bank, A Division of New York Community Bank

The Millennia Companies

The Club at Key Center

DCA MEMBERSAMBASSADOR LEVEL

AmTrust Financial

Bluebridge Networks, LLC

Cleveland Cavaliers

Cleveland Clinic

Medical Mutual

National General Insurance

OMNI Media

PNC

St. Vincent Charity Medical Center

PRESIDENTIAL LEVEL

Benesch, Friedlander, Coplan & Aronoff, LLP

Calfee, Halter & Griswold LLP

CBRE

Cleveland Indians

Cohen & Company

Cresco Real Estate

Fay Sharpe, LLP

First National Bank of Pennsylvania

Greater Cleveland Partnership

Hanna Commercial Real Estate

Hughie’s

ideastream

Kimpton (The Schofield Hotel)

Lolly the Trolley

Mansour, Gavin, Gerlack & Manos Co., LPA

McCarthy, Lebit, Crystal & Liffman Co., LPA

Oswald Companies

United Way of Greater Cleveland

ASSOCIATE LEVEL

BakerHostetler


Dollar Bank

Dwellworks, LLC

FirstMerit Convention Center of Cleveland

Jones Day

Reminger Co., LPA

Rock and Roll Hall of Fame and Museum

RSM US LLP

EXECUTIVE LEVEL

STATE OF DOWNTOWN CLEVELANDSPONSORED BY

1010 EUCLID AVENUE | CLEVELAND, OHIO216.736.7799

Date post:	15-Feb-2017
Category:	Documents
Upload:	lamnhi
View:	216 times
Download:	0 times

THE STATE OF DOWNTOWN CLEVELAND 2015

Documents