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The State of Downtown Cleveland 2015_digital.compressed (1) (1)

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www.downtowncleveland.com 1
THE
STATEOF
DOWNTOWN
CLEVELAND2015
#StateofdtCLE www.downtowncleveland.com2 3
TABLEOFCONTENTS
BOARDOFDIRECTORS..............................4
DCAOVERVIEW.......
#StateofdtCLE www.downtowncleveland.com4 5
Doug Miller, The Richard E. Jacobs Group, Chair
Jonathan Sandvick, Sandvick Arc...
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The State of Downtown Cleveland 2015_digital.compressed (1) (1)

  1. 1. www.downtowncleveland.com 1 THE STATEOF DOWNTOWN CLEVELAND2015
  2. 2. #StateofdtCLE www.downtowncleveland.com2 3 TABLEOFCONTENTS BOARDOFDIRECTORS..............................4 DCAOVERVIEW....................................5 STEPUPDOWNTOWN&HISTORICDOWNTOWN....6-7 DOWNTOWNDASHBOARD.........................8-9 DEVELOPMENT&INVESTMENT...................10-11 WATERFRONT...................................12-13 MAJOR DEVELOPMENTS.........................14-15 CLEAN&SAFE...................................16-17 DOWNTOWNRESIDENTS&FAMILIES.............18-19 HOUSING.........................................20 OFFICEMARKET................................21-23 DOWNTOWNTALENT..............................24 HOSPITALITY.....................................25 RETAIL&AMENITIES...........................26-27 MOBILITY.....................................28-29 HOWTHISREPORTCANWORKFORYOU...........30 SOURCES........................................31 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 @DwntownCLE@DowntownCLEfacebook.com/DowntownClevelandAlliance YouTube.com/DwntwnCLE WWW.DOWNTOWNCLEVELAND.COM | 216.736.7799 #StateofdtCLE www.downtowncleveland.com2 3
  3. 3. #StateofdtCLE www.downtowncleveland.com4 5 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 DOWNTOWNCLEVELANDALLIANCE BOARDOFDIRECTORS DOWNTOWNCLEVELAND IMPROVEMENTCORPORATION BOARDOFDIRECTORS Joseph 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. CONNECTINGDOWNTOWNCLEVELAND DowntownCleveland First Energy Stadium Rock+ Roll Hall of Fame & Museum Burke Lakefront Airport 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 Alliance Noun [uh-lahy-uh ns] Detroit Shoreway Ohio City Tremont Central Midtown Asia Town andsurroundingneighborhoods
  4. 4. #StateofdtCLE www.downtowncleveland.com6 7 IT’STIME TO MAKE AMOVETheStateofDowntownClevelandthroughthelensofEconomicDevelopment “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 BrownFlynn Downtown 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: STEPUPDOWNTOWN HISTORICDOWNTOWN Ohio 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: 37PROJECTS Complete $1.1BILLIONin additional public and private investment 5.8MILLIONSFof commercial space to residential space 1MILLIONSFfor commercial use 166,739SFinto retail space. 3,640APARTMENTS Leverage Modernize Add to the market Convert Convert #StateofdtCLE www.downtowncleveland.com6 7
  5. 5. #StateofdtCLE www.downtowncleveland.com8 9 $6BILLIONininvestment(2008-2015) GETTINGTOKNOWNORTHEASTOHIO 16.3%ClassAOfficeVacancy AcresofRecreational Waterfront 2697%MarketRate ApartmentOccupancy newapartmentsplanned orunderconstruction 3,315 DowntownCleveland arehometo 41,000Residents 130,000Jobs 79%POPULATION INCREASE2000-2015 5,000 &retainedin2015 jobscreated GETTINGTOKNOWDOWNTOWNCLEVELAND andsurroundingneighborhoods #StateofdtCLE www.downtowncleveland.com8 9
  6. 6. #StateofdtCLE www.downtowncleveland.com10 11 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 PLANNEDTOBECOMPLETED2017-2018 1. 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 OPENINGIN2016 1. 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 2015COMPLETEDPROJECTS 1 2 3 4 5 6 7 8 9 10 11 13 1 2 3 4 5 6 7 8 9 10 1 2 3 456 7 8 9 1011 12 13 14 15 13 12 STATEOFDOWNTOWNDEVELOPMENT&INVESTMENT Downtown 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: COMPLETEDIN2015 29PROJECTSPLANNEDTOOPEN2016-2018 INCREASINGINVESTMENTINDOWNTOWNCLEVELAND 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 16 14 12 10 8 6 4 2 4 4 4 2 9 11 13 14 14 8 4 NumberofProjectsStartedortoStart $3millionormoreininvestment YEAR TYPESOFINVESTMENTINDOWNTOWN 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 FirstEnergy Stadium Rock+ Roll Hall of Fame & Museum Burke Lakefront Airport Public Square Cleveland State University Flats East Bank Quicken Loans Arena Playhouse Square 11 12 13 16 DowntownCleveland * see page 11 for list of 29 projects
  7. 7. #StateofdtCLE www.downtowncleveland.com12 13 $1.8BILLIONIN ECONOMIC ACTIVITY 60%INCREASE (2008-2014) PORTRELATED JOBSUP60% (2010-2014) 82%INCREASEIN BULK TONNAGE SHIPPED (2008-2014) 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. CUYAHOGACOUNTYPORTAUTHORITYFLATSEASTBANK diningand entertainment venues1420-ACRE CanalBasinParktobea parkontheriver ofrecreational waterfront26 Downtowncurrentlyhometomorethan CUYAHOGARIVERThe 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. WATERFRONT ROCK&ROLLHALLOFFAMEAND MUSEUM GREATLAKES SCIENCECENTER THEGREATLAKES’ONLY FLOATINGHEADQUARTERS VOINOVICHPARK ROCKNDOCKPADDLEBOAT&JET-SKIRENTALPROVIDER DOWNTOWNCLEVELAND’S ONLYMARINA NORTHCOASTHARBORDCA 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.
  8. 8. #StateofdtCLE www.downtowncleveland.com14 15 MAJORDEVELOPMENTPROJECTS|PLANNEDMAJORDEVELOPMENTPROJECTS|UNDERCONSTRUCTION 925EUCLID PUBLICSQUARE FLATSEASTBANKPHASEII HILTONCLEVELANDDOWNTOWN WESTONCITYMARK nuCLEus $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 $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
  9. 9. #StateofdtCLE www.downtowncleveland.com16 17 LIVE WORK PLAYHere’swhatDowntownClevelandlooksliketoday KEEPINGCLEVELANDCLEAN&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. DCAAMBASSADORS:ATYOURSERVICE 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. IN2015,DCAAMBASSADORS: 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 DIDYOUKNOW? “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 Vesey Downtown Cleveland #StateofdtCLE www.downtowncleveland.com16 17
  10. 10. #StateofdtCLE www.downtowncleveland.com18 19 STATEOFDOWNTOWN:RESIDENTS Downtown’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. GENDER 20-24 25-34 35-44 45-54 55-64 65 and over 879 1462 1066 637 278 264 1203 2411 1024 835 704 179 2000 2014 680 825 441 333 237 320 1162 1639 584 428 311 292 Male Female 2000 2014 RACEOFDOWNTOWNRESIDENTS White Alone Black or African American Asian Alone Two or more races Some other race 47.8% 40.1%40.1% 47.8% STATEOFDOWNTOWN: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. DEVELOPMENTOPPORTUNITIES Campus International School Kindergarten 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. DOWNTOWNCLEVELANDFAMILYAMENITIES Currently Downtown Cleveland has three early learning centers highly rated by the state and five schools. 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. EMERGINGTRENDS Between 2010 and 2014, the number of children and 35 to 40 year olds increased, reversing the previous decline. ESTABLISHEDTRENDS Between 2000 and 2014, Millennials and Baby Boomers led the growth in Downtown Cleveland’s population. 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 LEVELSOFDOWNTOWNRESIDENTS 2010 2014(AGE25+) PERCENTCHANGE (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% HOUSEHOLDSWITHINCOME: AGGREGATEINCOME AVERAGEHOUSEHOLDINCOME $231,126,584 $372,998,704 61% $44,914 $60,297.24 34% INPOPULATIONOF35-44 YEAROLDRESIDENTS 31%INCREASE INCREASEIN CHILDRENAGES 0-5YEARSOLD INCREASEINCHILDRENAGES 5-9 POPULATIONOFWOMENAGES20-34YEARSOLD HASGROWNBY86% INMILLENNIALS 77%INCREASE INCREASEINBABYBOOMERS 97%
  11. 11. #StateofdtCLE www.downtowncleveland.com20 21 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. “Ouryoungeremployeesdon’twanttogotoasuburbanofficepark.It’sboringasallget outthere.Heretheywalkoutsideandseecoolstuffandit’sfun.Iwantedtobewherethey wantedtobe.” RegShiverick,President ofDakotaSoftware,DowntownCleveland STATEOFDOWNTOWN:OFFICEMARKET 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 2011 20142012 2013 4,171 4,171 4,857 5,196 4,171 4,193 4,936 5,196 4,171 4,636 5,162 5,459 4,171 4,705 5,162 5,565 100% 95% 90% 85% 80% 75% 70% 65% 60% 55% 2015 5,565 5,543 5,785 5,870 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. STATEOFDOWNTOWN:HOUSING RENTALRATES Average Rent Per Month for a One Bedroom Average Rent Price per SF $786 $1.08 $1017 $1.32 2011 2015 FORSALEUNITS Average Sale Price per unit Average Sale Price per SF $249,550 $177.76 $259,287 $207.80 2011 2015 WalkscoreofDowntown ClassAOfficeBuildings TransitScoreofDowntown ClassAOfficeBuildings VACANCYRATESANDLEASERATESFORSIMILARLY-SIZEDDOWNTOWNSINREGION 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% ClassALeaseRateperSF 2015 $27.50 7.2% 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% ClassAVacancyRate • 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) DOWNTOWNHOUSINGMARKET NumberofRentalUnitsinDowntownCleveland SF of office space, including 8.8 million SF of Class A space15.8MILLION Downtown Cleveland has Average AskingLeaseRate $20.98 NetAbsorption 106,000SF Q4Vacancy16.3% CLASSASPACEIN2015: DOWNTOWNCLEVELANDRENTALUNITSANDRESIDENTIALOCCUPANCY,2011-2015
  12. 12. #StateofdtCLE www.downtowncleveland.com22 23 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. 50OFFICETENANTSRECOMMITTEDORRELOCATEDTODOWNTOWNCLEVELANDIN2015 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% 2011 Q1 Q2 Q3 Q4 2012 Q1 Q2 Q3 Q4 2013 Q1 Q2 Q3 Q4 2014 Q1 Q2 Q3 Q4 2015 Q1 Q2 Q3 Q4 $20.00 $19.50 $19.00 $18.50 $18.00 $17.50 $17.00 $16.50 $16.00 $15.50 LeaseRates VacancyRates DOWNTOWNCLEVELANDLEASERATESCLIMB,ASVACANCYDECLINES STATEOFDOWNTOWN:HEALTH&TECHNOLOGY OFFICESPOTLIGHTS:STARTMART OFFICESPOTLIGHTS:GLOBALCENTERFORHEALTHINNOVATION 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. RetentionorExpansion STATEOFDOWNTOWN:OFFICEMARKET • 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. TECHANDHEALTHINDUSTRIESGROWINDOWNTOWNCLEVELAND • 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. FIBERFEEDSDOWNTOWNCLEVELANDTECHNOLOGYINDUSTRY
  13. 13. #StateofdtCLE www.downtowncleveland.com24 25 STATEOFDOWNTOWN:TALENTANDEMPLOYMENT Downtown Cleveland’s strong talent base and employment growth fuel the office market. The most recently available data indicates that Downtown Cleveland employers increased employment 9.7 percent from 91,583 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. REPUBLICANNATIONALCONVENTION STATEOFDOWNTOWN:HOSPITALITY LARGESTPRIVATEEMPLOYERSINDOWNTOWNCLEVELAND DOWNTOWNHIGHEREDUCATIONFUNNELSTALENTINTOWORKFORCE • 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 Downtown 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. TODOWNTOWNCLEVELAND 50,000VISITORS THEREPUBLICANNATIONALCONVENTIONWILLBRING 15,000MEDIAPERSONNELCOVERINGTHECONVENTION UTILIZETHE225,000SFSTATEOFTHEARTCLEVELAND CONVENTIONCENTERASTHECONVENTION’SMEDIACENTER 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 PlayhouseSquare 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 CLEVELANDSTATEUNIVERSITY CUYAHOGACOMMUNITYCOLLEGE
  14. 14. #StateofdtCLE www.downtowncleveland.com26 27 STATEOFDOWNTOWN:RETAIL&AMENITIES 2015MAJORDOWNTOWNRETAILWINS 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. GEIGERS Geiger’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’SFINEFOODS Heinen’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. 5THSTREETARCADES METROHOME Metro 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. 36NEWRETAILERSOPENEDIN2015 • 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 NATIONALBRANDSINDOWNTOWNCLEVELAND CVS 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 DOWNTOWNRETAILOPENINGIN2016 Heinen’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 STATEOFDOWNTOWN:RETAIL&AMENITIES DOWNTOWN’SRETAILTRADEAREADEMOGRAPHICS
  15. 15. #StateofdtCLE www.downtowncleveland.com28 29 STATEOFDOWNTOWN:MOBILITY Downtown 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. WALKABLEDOWNTOWN • 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) DOWNTOWNCLEVELAND’SPUBLICTRANSIT 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. DOWNTOWNBICYCLING DOWNTOWNAIRSERVICE Daily 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. 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 STATEOFDOWNTOWN:MOBILITY
  16. 16. #StateofdtCLE www.downtowncleveland.com30 31 4WAYS THISREPORT CANWORK FORYOU 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.MakeaMove Making good public policy requires good information about the most up to date trends, developments and growth opportunities. 3.GuideGoodGovernment Enhance your reporting, researching and recruiting with the story of Downtown Cleveland. 4.TelltheStoryStart 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.GrowCommerce 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:
  17. 17. #StateofdtCLE32 KeyBank National Association Ohio Savings Bank, A Division of New York Community Bank The Millennia Companies The Club at Key Center DCAMEMBERS AMBASSADORLEVEL AmTrust Financial Bluebridge Networks, LLC Cleveland Cavaliers Cleveland Clinic Medical Mutual National General Insurance OMNI Media PNC St. Vincent Charity Medical Center PRESIDENTIALLEVEL 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 ASSOCIATELEVEL BakerHostetler Cleveland State University 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 EXECUTIVELEVEL STATEOFDOWNTOWNCLEVELAND SPONSOREDBY 1010EUCLIDAVENUE|CLEVELAND,OHIO 216.736.7799

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