2. Process for the Market Assessment
ï§ Assessment to identify
opportunities through next
investment cycle (5 to 7 years) and
inform âStep Upâ plan
ï§ Primary and secondary data
sources
ï§ Stakeholder interviews â real
estate, investment & economic
development
3. Market Assessment Document
ï§ Top Global Trends in Effect in
Cleveland
ï§ Market Opportunities in this
Investment Cycle
ï§ Key Market Indicators in
Cleveland
5. Top Global Trends in Effect
ï§ Need for skilled talent is driving
businesses to compact urban centers
⊠Millennials today 36% of US workforce, 50% by 2020
ï§ Millennials & empty nest Boomers want
to live downtown
⊠40% increase in Downtown Cleveland residents
ï§ Changing workforce demographics also
include women
⊠Focus on safety, mixed-use & cultural diversity
6. Top Global Trends in Effect
ï§ Demand for Mobility Options
⊠Downtown Walk Score 87; Transit: 82; Bike 52.
ï§ Health & Wellness Opportunity for
Cleveland
⊠Both Industries and Lifestyle Preferences
ï§ Social Equity a Growing National
Concern
⊠Downtown as a common gathering place, inviting
and welcoming to all
8. Residential: Strong & Sustained
ï§ Residential is driving the current investment cycle
ï§ 800+ units added w/o increasing vacancy rate
ï§ 2,000 more units online by 2015 growing
downtown population to 15,000
ï§ Remaining tax credit eligible properties could
supply another 2,000 to 2,500 units â will be
absorbed this cycle?
ï§ Demand for resident-serving amenities
9. Office & Retail: Niche Opportunities
OFFICE
Overall 18% vacancy / $17 rates
âSuper Aâ niche:
⊠Modern formats / smaller footprints
⊠Regional retention
⊠8-9% vacancy & ~$30 leasing rates
⊠May support additional new build
Entrepreneurial niche
⊠Street level retail conversions
⊠Co-working space
RETAIL
Oversupply - contracting nationally
Consolidate in key activity centers &
pedestrian connectors
Niche opportunities
⊠General Merchandise $16.5 leakage
⊠Resident & worker-serving personal services
⊠Visitor-serving near convention center
⊠Health & fitness related
10. Visitor: Building Out
ï§ $465M investments in Convention Center &
Global Center for Health Innovation
ï§ Playhouse Square expansion &
enhancements
ï§ 1,800 new hotel rooms in progress/planned
ï§ Revenue and occupancy numbers will be
closely watched
ï§ Casino Phase II timing still TBD
12. Reasons for
Key Indicator
Recommendations
Tell the story succinctly and powerfully
ï§ Promote & Extend Residential Demand
ï§ Recruit & Retain Skilled Talent
ï§ Attract & Retain Businesses
ï§ Uncover & Promote Niche Opportunities
ï§ Report Data Specific to Downtown
13. Residential & Worker Indicators
12,000 Downtown Residents
124,000 Downtown Workers
Resident Demographics
⊠51% hold a Bachelorâs or Advanced Degree
⊠74% White Collar
⊠70& single, never married
⊠Average per capita income 64% higher than
metro average
Residential occupancy
⊠95% for last 11 quarters
Cleveland Diversity Index: 62.1
Cleveland Cost of Living Index: 101.0
Median Annual Wage for MSA $35,610
⊠~$0.5 M MSA workersâ salaries support
$1,000/mo
Transit Ridership Increases 2013:
⊠Light Rail: 4.6%
⊠Heavy Rail 5.7%
14. Commercial Indicators
⊠18% overall office vacancy
⊠Asking Lease Rates Q2 2013
$19.10
⊠37,600 net absorption 2013
⊠Regional retention of businesses
⊠âSuper Aâ ~8-9%vacancy; $30.00
s.f. asking rate
⊠Aggregate Disposable Income:
$37.7 M
Visitor Indicators
⊠Convention Center Bookings
projected 300,000
⊠Number Hotel Beds: 3,557
⊠Hotel Occupancy: 67.2%
⊠Revenue per Available Room:
$79.33
⊠Downtown Visitor Attraction: 8.5 M
to top 5 venues