jll downtown cleveland full circle report 2017
TRANSCRIPT
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Full circle: ClevelandAn in-depth look at how residential demand, corporate
growth, and development activity sparked the
resurgence of downtown Cleveland
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Cleveland’s resurgence gains national attention2016 was an exceptional year for Cleveland. In October, Forbes Magazine declared Cleveland, “America’s hottest city”, and
the title was fitting. In June, the Cleveland Cavaliers won the NBA Championship, in July, the city hosted the Republican
National Convention, and in October, the Cleveland Indians kept the magic alive with an appearance in the World Series.
The national spotlight these local accomplishments drew provided Cleveland with an opportunity to change its narrative.
Audiences across the nation had an opportunity to learn about downtown Cleveland’s resurgence, driven by residential
demand, corporate growth, and $6.6 billion in development activity.
The media’s expansive coverage of the region during this time focused on more than just excellence in athletics, highlighting
Cleveland’s burgeoning food scene, its thriving arts community, its affordability, and many other positive developments
transforming downtown Cleveland. These influential factors have allowed Cleveland to draw America’s youngest and
brightest away from economic hubs, such as; New York, Boston, and Silicon Valley.
Cleveland’s comeback story was cemented in 2016 under the national spotlight. Now as we enter 2017, look for downtown
Cleveland’s resurgence to continue with greater intensity and magnitude.
Downtown Cleveland
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Downtown Cleveland by the numbers
48%Percent Millennials
98,000Total employment
70 Office tenants
2016 Business attraction and retention
108# of investment projects (2012-planned)
$6.6BTotal investment
67%Private investment
2.9Square miles
14,000Residential population
79%Population growth since 2000
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Downtown Cleveland
0
550,000
1,100,000
1,650,000
2,200,000
-
4,000
8,000
12,000
16,000
2000 2010 2017
Population growth
Downtown Cleveland has seen rapid
population growth despite stagnation at
the metro level.
2.1M 2.1M 2.1M
7.8K
9.9K
14.0K
Demographics
15%
48%
20%
14%
Millennials make up nearly half of the
downtown population, a significant factor
driving business attraction and retention.
Generation Z (0-19)
Millennials (20-36)
Generation X (37-52)
Baby Boomers (53-71)
The Silent Generation (72+)
-
2,250
4,500
6,750
9,000
2000 2010 2017
Residential development
Unlocking pent-up demand: Developers have
added more than 4,000 residential units
downtown since 2000, and yet, occupancy
remains above 90%.
4.3K
6.6K
8.6K
People
Downtown population Metro population Downtown housing units
2017 downtown population by age
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Largest employers
The largest private employers in downtown
Cleveland span a broad range of industries,
illustrating the diversification of the region’s
economy.
KeyCorp
Sherwin-Williams
Rock Gaming
Medical Mutual
Ernst & Young
4,810
3,430
2,080
1,800
1,170
Healthspan
Ohio Savings Bank
St. Vincent Medical Center
Huntington Bank
JPMorgan Chase
1,100
840
830
780
730
Business attraction and retentionIn 2016, downtown business attraction and
retention efforts secured commitments from
more than 70 office tenants. Below are the
companies that made the largest office
commitments in 2016.
American Heart Association
BrightEdge
CapitalWorks
CoStar
Alexander Mann
HWH
Hyatt Legal Plan
Kelley & Ferraro
Maloney + Novotny
McDonald Hopkins
Morgan Stanley
OnShift
Plante Moran
Quicken
Schneider Smeltz
Taft
TransDigm
Ziegler Metzger
Retention or expansion (920,000+ s.f.)
Attraction (180,000+ s.f.)
Employment by industry
Professional and business services
Hospitality, leisure and retail
Government
Construction, manufacturing and transportation
Downtown employment by industry
Information
Education and healthcare
Other
Downtown Cleveland has a thriving 21st
century economy with significant employment
in the business and technology industries.
36%
17%17%
7%
7%
6%
10%
Business
IBM (Explorys)
New York Life
Siegfried Group
Downtown Cleveland
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53%
17%
30%
Investment by project status
Investment activity surged during the past five
years, and the pipeline for additional
investment remains strong.
Completed (2012-16)
Under construction
Planned
$3.5B
$1.1B
$2.0B
64
22
22
Status Investment
# of
projects
Investment by funding typeWhile public funding has been instrumental in
kick starting a number of developments, private
funding has driven much of the investment
activity downtown.
67%
33%
Private investment dollars
Public investment dollars
$0.0
$0.7
$1.4
$2.1
Education,infrastructure,
public use
Entertainment,retail
Hotel Office Residential
Investment by property type
Residential development has received the largest
share of investment, driven by strong demand
and a tight apartment market.
28
projects
40
projects
19
projects
15
projects
24
projects
($B)
Investment
Downtown Cleveland
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9 Ritz-Carlton Renovation
10 Standard Building Apartments
11 The Edge
12 The Garfield
13 The Milton
14 Whitlatch Building
15 Worthington Yards Apartments
1 H5/ByteGrid Data Center
2 Campus International School
3 Cleveland Athletic Club
4 College of Engineering
5 Federal Building Renovations
6 Global X Redevelopment
7 Lakefront Development
8 Residences at Leader
1 75 Public Square Apartments
2 925 Euclid Avenue
3 City Blue Apartments
4 Domain at Cleveland
5 Halle Residential Conversion
6 Jacobs Waterfront District
7 John Hartness Brown Building
8 May Company Building
9 nuCLEus
10 Old River Rd Redevelopment
11 Terminal Tower
12 The Beacon
13 The Q (Phase 2 Renovations)
14 Tower at Erieview Conversion
15 Weston Development
11 Public Square Renovation
12 Quicken Loans Expansion
13 Renaissance Renovation
14 Residences at 1717
15 Settler's Point
16 St Vincent Renovation
17 The Creswell
18 The Ivory
19 The Q (Phase 1 Renovations)
20 YMCA
1 Center for Medical Professions
2 Drury Plaza
3 First Energy Stadium Renovation
4 Flats East Bank (Phase 2)
5 Hilton
6 Innerbelt Bridge
7 Kimpton
8 Park/Southworth Buildings
9 Playhouse Square Streetscape
10 Progressive Field Renovations
Investment map
Significant projects under construction
Significant projects completed in 2015-16
Notable proposed projects
Completed in 2015-16 Under construction Proposed
Downtown Cleveland
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Contact
Andrew Batson
Director, Research
+1 216 937 4374
www.jll.com/research
www.jll.com/cleveland
© 2017 Jones Lang LaSalle IP, Inc. All rights reserved.
Noah Bill
Research Analyst
+1 216 937 4381 [email protected]