2021 Q1 MARKET UPDATE - Downtown Cleveland Alliance
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2021 Q1 MARKET UPDATE Q1 MARKET UPDATE
Q 1 2 02 1
2021 is off to a strong start in Downtown Cleveland, where
we are leading the region toward life after the pandemic.
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The Wolstein Center mass vaccination site has
administered an average of over 6,000 shots per day.
This major success has paved the way for an increase in
the daytime population in the first quarter as employees
returned to the office, fans returned to Progressive
Field and other venues, and residents signed
downtown leases.
Major employers including iHeart Media, Fathom Digital
Marketing, Vecmar Computer Solutions, and more
shared plans to bring jobs from the suburbs into Downtown
Office
Cleveland. Rocket Mortgage committed to expanding
their downtown workforce with an additional 700
jobs. Sherwin-Williams shared their plans to begin
construction on their global headquarters by the end of
2021. These and other commitments to in-person work
86%
class a occupancy
helped the overall occupancy rate climb to 84.8%, up Q1 2021
3.7% from Q1 2020. The Class A office occupancy rate held
steady in Q1 of 2021.
The year began with over $770 million in development
underway or planned. The completion of Euclid Grand Housing
added 240 apartments to Euclid Avenue. Construction
began on 55 Public Square, continued on 75 Public
Square, and progressed on projects like the Towpath
Trail and the North Coast Harbor pedestrian bridge,
which will create a more complete and connected
83%
residential
occupancy
downtown urban fabric.
Q1 2021
Downtown experienced a slight expected dip in rental
occupancy in Q1 due to an increase in supply as new
housing units hit the market. In response, DCA ramped
up our Live Downtown Cleveland campaign, using Hospitality
television commercials to attract residents and bring
attention to our housing portfolio. We estimate that
there are nearly 20,000 residents and growing as new
buildings begin leasing up. 36%
hotel occupancy
Over 140 restaurants and retailers are open for Q1 2021
business downtown, and events are being added to
the calendar. The Huntington Convention Center
reopened in Q1, setting the tone for other venues to resume
welcoming guests. Hotel occupancy rose over 7% from
Q4 2020, signaling that Downtown Cleveland is entering a
new day.
Q1 MARKET UPDATE
HOUSING &
DEVELOPMENT 20,000Downtown
Residents
Q1 2021
For Sale Housing Unit Profile
Q1 2021 Q1 2020
Housing Development
PLANNED UNDER CONSTRUCTION
Properties Sold 16 17
Rental 1,643 114
Average Sale Price $270,023 $354,764
For Sale 0 27
For Sale psf $197.39 $244.86
Housing Market
Q1 2021 Q1 2020
Total Units 8,579 7,520
Occupancy 83% 86.7%
Rental Price psf $1.57 $1.58
Downtown Construction Projects
Project Investment Amount Project Investment Amount
2125 Superior Lofts $12 million Flats East Bank Phase III $2 Million
75 Public Square $40 million NCH Finger Bridge $17 million
The Avenue Townhomes $ 9 million
TOTAL TOTAL $80 million
OFFICE
Office Market Statistics
CLASS A (JLL) Q1 2020 CLASS B (CBRE) Q1 2020 OVERALL (CBRE) Q1 2020
Average Lease Rate $25.84 $25.47 $18.01 $17.91 $20.82 $19.83
Net Absorption -45,589 sq/ft -23,312 sq/ft -73,396 sq/ft 3,813 sq/ft -101,791sq/ft -19,898 sq/ft
Occupancy 86% 87.1% 84.6% 75.6% 84.8% 81.1%
Notable Lease Signings
NAME ADDRESS BUSINESS TYPE SQ. FOOTAGE
Falls Digital 50 Public Square Marketing 31,000
Ulmer and Berne 1660 W 2nd St. Legal 86,956
United States GSA 1001 Lakeside Ave Government 28,704
Q1 MARKET UPDATE
HOSPITALITY
ADVOCACY Hotel Performance Q1 2021
Q1 OCCUPANCY AVERAGE DAILY RATE REVPAR
2021 36.3% $133.60 $48.46
» Our advocacy priorities reflect our leadership in building for the 2020 40.3% $124.19 $50.06
future downtown through a strong development portfolio, a robust
office market that meets today’s needs, and the infrastructure and
amenities that attract talent.
Q1 Advocacy Highlights: How We Can Help?
» Following an extensive DCA advocacy campaign, Ohio SB 57
took effect in March. The legislation authorizes $200 million
Storefront and office businesses looking for downtown
in insurance premiums tax credits over the next two years, locations can search available by real estate by using our online
encouraging insurance companies to invest in Transformational site searcher. Do you have a vacant space that you would like
Mixed-Use Developments projects.
to be included on our site? Interested in touring or learning
» DCA joined our partners at Greater Cleveland Regional Transit
Authority in successfully advocating for increased public transit
more about a downtown location? Contact Michael Collier at
funding in the state budget. As passed, the bill allocates $74 million mcollier@downtowncleveland.com.
per year in funding for public transit, an increase from $7.3M in the
Governor’s original budget proposal. Interested in becoming a corporate or small business partner?
» In collaboration with the Cuyahoga Metropolitan Housing Contact Heather Holmes at hholmes@downtowncleveland.com
Authority, the Urban League of Greater Cleveland, and
Cleveland Neighborhood Progress, DCA successfully supported Follow Downtown’s Progress
the historic nomination of Congresswoman Marcia L. Fudge to
serve as Secretary of the U.S. Department of Housing and Tune in to our Downtown Now! webinar series every other
Urban Development.
Thursday at 3pm.
» DCA successfully supported the request for a capacity variance by
the Cleveland Cavaliers/Rocket Mortgage FieldHouse, which LinkedIn: Downtown Cleveland Alliance
increased the number of fans permitted in the arena from 300 to
2000 for the 2021 season. Twitter: @DowntownCLE
» DCA was a Gold Commuter Choice Award Winner in NOACA’s
annual competition. The award is a nod to our work promoting
Instagram: @dwntowncle
sustainable commuting among staff and the downtown workforce.
Support the UniteCLE Fund
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