Yardi Matrix: Reinventing Cleveland

By Laura Calugar

Cleveland rent evolution, click to enlarge

Cleveland has been one of the slowest-growing metros in recent years, but while its real estate fundamentals continue to lag the rest of the country, there are signs of emerging opportunities.

Employment growth has been steady for the past six years as a more diverse workforce has emerged and the region has gradually severed ties to its industrial past. Consistent job gains in health services and education have bolstered the employment market, while formerly traditional sectors, such as construction and manufacturing, lost positions. The metro continues to develop its biomedical and innovation centers, and in December, top cancer center University Hospitals broke ground on its Rainbow Center for Women & Children, located within Cleveland’s Health-Tech Corridor.

Rent growth across the metro remains slow but steady, and strong gains were made in certain downtown and lakeside areas. New construction is also concentrated in Downtown Cleveland, as well as four other core submarkets. Construction jobs may return to the metro, as completions are expected to increase 400% in 2017 compared to 2016. Given the relatively soft real estate fundamentals, the metro remains affordable, and may provide investors with unique growth opportunities as the region continues to reinvent itself.

Read the full Yardi Matrix report.