The document provides an overview of the Cleveland office market in Q3 2019, including recent leasing, construction, sales, and employment trends. It notes that Cleveland has gained recognition as a competitive corporate location due to its affordable costs and educated workforce. Several companies recently relocated or expanded in Cleveland, while Sherwin-Williams is considering Cleveland for a new 1 million square foot headquarters. Office demand is expected to moderate in 2020, but vacancy rates should remain stable as new construction remains limited. Flexible workplace design and coworking are emerging trends as employers cater to evolving workforce needs.

1. JLL Research
Cleveland | Q3 2019
Office Outlook
An in-depth look at the Cleveland office
market. Analysis includes leasing, sales,
construction and employment.

2. Q3 2019
Insight
Cleveland Office Outlook
Cleveland’s national recognition as a competitive corporate city has grown
significantly in the past decade. With compelling market fundamentals such
as a high quality of life, an affordable cost of doing business, and a well
educated workforce, CEO’s and their companies are now considering
Northeast Ohio as a major economic player for corporate relocations. This
quarter alone, five new companies gained a presence in Cuyahoga County
with industries ranging from fintech to digital medical devices. But as
Cleveland attracts new companies from out of state, it must also retain
current businesses to stay competitive. Recently, Sherwin-Williams
confirmed its search for a new global headquarters, which could approach
1.0 million square feet. With a 153-year history tied to the city and over 3,000
employees downtown, their decision will have a significant impact on the
local economy, and potentially, the Cleveland skyline.
Meanwhile, other local companies are also taking advantage of Cleveland’s
positive metrics. A number of businesses are in expansionary mode, hiring
new employees and rapidly growing their real estate footprints. To name a
few, companies like Swagelok, Progressive, and Park Place Technologies are
investing in their corporate offices to remain competitive in a tight labor
market. In addition, suburban companies are continually migrating
downtown with Skoda Minotti being the latest to open a new office in the
skyline. This ongoing migration alongside the reoccurring flight-to-quality
trend continues to strengthen Cleveland’s momentum and economy.
Outlook
Office demand will continue to moderate into 2020 as companies rightsize
and increase utilization rates. However, with limited construction, vacancy
rates should remain stable. Asking rents are likely to appreciate in the 2.0
percent range as landlords upgrade assets and push rents. Additionally, look
for emerging trends such as flexible workplace design and coworking to
strengthen as employers cater to an evolving workforce.
Cleveland metro is hotspot for relocating companies
20.9% 20.8% 20.8%
20.3%
2016 2017 2018 2019
Total vacancy
$16.00
$19.00
$22.00
$25.00
2016 2017 2018 2019
Average asking rents ($/s.f.) Class A
Class B
• CEO’s are now considering Northeast Ohio as a major economic
player for corporate relocations due to positive market fundamentals.
• Sherwin-Williams confirmed its search for a new headquarters and is
considering several out-of-state options in addition to Cleveland.
• Look for emerging trends such as flexible workplace design and
coworking to strengthen as employers cater to an evolving workforce.
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Fundamentals Forecast
YTD net absorption 125,544 s.f. ▲
Under construction 60,000 s.f. ▲
Total vacancy 20.3%
▼
Average asking rent (gross) $19.76 p.s.f. ▲
Concessions Declining ▼
0
90,000
180,000
270,000
360,000
2016 2017 2018 2019
Supply and demand (s.f.) Net absorption
Deliveries
Top trends

3. Statistics
Note: Updates to the property set were made based on market dynamics. Historical data points included in this report reflect the updated property set.
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Cleveland Office Outlook
Q3 2019
Class
Inventory
(s.f.)
Total net
absorption
(s.f.)
YTD total net
absorption
(s.f.)
YTD total net
absorption
(% of stock)
Direct
vacancy (%)
Total
vacancy (%)
Average
direct asking
rent ($ p.s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Downtown Total 13,527,531 -123,728 -164,987 -1.2% 23.0% 24.1% $19.87 0 0
Midtown Total 973,981 -3,816 7,421 0.8% 18.5% 18.8% $20.11 0 0
Urban Total 14,501,512 -127,544 -157,566 -1.1% 22.7% 23.7% $19.88 0 0
East Total 4,155,861 55,087 107,016 2.6% 13.3% 16.2% $22.03 0 0
Northeast Total 396,316 0 2,277 0.6% 21.4% 21.4% $15.77 0 0
South Total 4,746,892 36,136 7,812 0.2% 18.6% 18.9% $18.86 0 0
Southeast Total 653,559 2,612 76,882 11.8% 5.6% 5.6% $16.97 0 0
Southwest Total 897,714 -2,100 4,504 0.5% 15.2% 15.2% $17.13 0 0
West Total 1,501,913 22,287 84,619 5.6% 11.3% 12.0% $18.79 0 60,000
Suburbs Total 12,352,255 114,022 283,110 2.3% 15.1% 16.3% $19.55 0 60,000
Cleveland Total 26,853,767 -13,522 125,544 0.5% 19.2% 20.3% $19.76 0 60,000
Downtown A 5,723,488 -1,345 -81,357 -1.4% 12.9% 13.9% $24.97 0 0
Midtown A 304,356 13,022 14,418 4.7% 10.6% 11.6% $23.07 0 0
Urban A 6,027,844 11,677 -66,939 -1.1% 12.7% 13.8% $24.89 0 0
East A 2,232,289 50,898 112,374 5.0% 12.2% 17.2% $25.31 0 0
Northeast A 0 0 0 0.0% 0.0% $0.00 0 0
South A 1,675,643 38,897 15,182 0.9% 13.6% 14.3% $22.77 0 0
Southeast A 78,000 0 0 0.0% 0.0% 0.0% $0.00 0 0
Southwest A 88,000 0 0 0.0% 16.1% 16.1% $21.50 0 0
West A 539,951 0 35,842 6.6% 7.1% 7.1% $25.60 0 60,000
Suburbs A 4,613,883 89,795 163,398 3.5% 12.0% 14.7% $24.11 0 60,000
Cleveland A 10,641,727 101,472 96,459 0.9% 12.4% 14.2% $24.58 0 60,000
Downtown B 7,804,043 -122,383 -83,630 -1.1% 30.4% 31.5% $18.30 0 0
Midtown B 669,625 -16,838 -6,997 -1.0% 22.0% 22.0% $19.47 0 0
Urban B 8,473,668 -139,221 -90,627 -1.1% 29.7% 30.7% $18.37 0 0
East B 1,923,572 4,189 -5,358 -0.3% 14.5% 15.1% $20.05 0 0
Northeast B 396,316 0 2,277 0.6% 21.4% 21.4% $15.77 0 0
South B 3,071,249 -2,761 -7,370 -0.2% 21.3% 21.4% $17.57 0 0
Southeast B 575,559 2,612 76,882 13.4% 6.3% 6.3% $16.97 0 0
Southwest B 809,714 -2,100 4,504 0.6% 15.1% 15.1% $16.62 0 0
West B 961,962 22,287 48,777 5.1% 13.6% 14.8% $16.69 0 0
Suburbs B 7,738,372 24,227 119,712 1.5% 16.9% 17.2% $17.94 0 0
Cleveland B 16,212,040 -114,994 29,085 0.2% 23.6% 24.3% $18.22 0 0

4. Q3 2019
Construction
Cleveland Office Outlook
2
1
4
This map highlights a partial list of construction projects either planned, under construction, or recently completed.
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
2
Development: Market Square
Square feet: 137,000
Tenant(s): TBD
Owner: Harbor Bay
Construction type: Spec
Construction start: TBD
4
Development: Pinecrest
Square feet: 150,000
Tenant(s): Philips, et al.
Owner: Fairmount
Construction type: Spec
Completed: Q2 2018
3
Development: Van Aken
Square feet: 64,000
Tenant(s): ABA, RMS, et al.
Owner: RMS
Construction type: Spec
Completed: Q2 2018
1
Development: Convergent East
Square feet: 60,000
Tenant(s): IMCD, et al.
Owner: Equity Trust
Construction type: Spec
Est. Completion: Q4 2019
3

5. Q3 2019
Leasing
Cleveland Office Outlook
This dashboard analyzes leasing activity ≥ 5,000 square feet over a 12-month period, ending September 30, 2019.
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Leasing activity by size
1,093,713
81
599,079
454,780
39,854
410,662
683,051
Growing Shrinking Stable
691,154
402,559
Notable leasing transactions
Submarket Size
Paychex 23000 Millcreek Blvd East New lease Stable
AML RightSource 23000 Millcreek Blvd East New lease Growing
Travelers Insurance 6150 Oak Tree Blvd South Renewal Shrinking
MIM Software 25800 Science Park Dr East Renewal Stable
Fifth Third Bank 600 Superior Ave E Downtown Renewal Shrinking
Swagelok 31500 Bainbridge Rd Southeast New lease Growing
CommutAir 25000 Country Club Blvd West Relocation Growing
Stark Enterprises 629 Euclid Ave Downtown New lease Stable
Life Line Screening 6150 Oak Tree Blvd South New lease Stable
IMCD 30005 Clemens Rd West New lease Stable
12 months at a glance
Leasing activity (s.f.)
Number of transactions
Class A leasing (s.f.)
Class C leasing (s.f.)
Urban leasing (s.f.)
Suburban leasing (s.f.)
Class B leasing (s.f.)
Tenant footprint Leasing activity by industry
14 4 63
Leasing activity by transaction type
New lease
Renewal
Tenant Address Type Footprint
50,000
43,602
28,297
26,100
38,682
35,748
31,847
31,200
28,880
28,800
34%
25%
12%
10%
10%
Professional and business services
Financial Services
Scientific and technical
Real estate
Legal Services
Public and private institutions
Other
64 15 2
0
150,000
300,000
450,000
600,000
750,000
5,000-19,999 20,000-39,999 40,000-59,999 60,000+
Total s.f. leased Number of leases#
Leasing activityby submarket (s.f.)
37%
24%
20%
11%
Downtown
East
South
West
Southeast
Northeast
Southwest
Midtown
Leasing activityby industry (s.f.)

6. Q3 2019
Sales
Cleveland Office Outlook
This dashboard analyzes sales activity ≥ 30,000 square feet and ≥ $1.0M over a 12-month period, ending September 30, 2019.
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Noteable sales transactions
Size (s.f.) $ p.s.f. Sale date
1,270,204 $147 Oct-18
597,442 $92 Oct-18
387,636 $133 Feb-19
Time Equities PNC Bank 163,018 $7,550,000 $46 Feb-19
125,000 $7,500,000 $60 Nov-18
90,758 $6,500,000 $72 Oct-18
30,349 $4,570,000 $151 Oct-18
113,800 $32 Jan-19
53,351 $63 Dec-18
56,000 $52 Jul-19
$51,667,197PNC Bank
Piping Rock Associates
Hemingway Development
New Vista Asset Management $3,600,000
McKnight Property Management
Somera Road
1910 Carnegie Ave
777 Lena Dr
Glickman Real Estate
1138 W 9th St
7007 E Plesant Valley Rd Redwood Living
McSweeney Family $3,350,000
$2,900,000
GBX Group
City of Independence
17800 Royalton Rd
4100 W 150th St Silverpeak Real Estate Partners
24651 Center Ridge Rd
1111 Superior Ave
23000 Millcreek Blvd
Travel Centers of America
Foundation Software
$55,000,000Zamir Equities American Landmark Properties
200 Public Sq DRA Advisors Harbor Group International $187,000,000
Seller Sales priceBuilding address Buyer
Number of owner-user sales 6
Transactions details
Average price per square footSales volume by submarket (s.f.)
Number of sale-leasebacks 0
12 months at a glance Sales volume by building type
Total volume ($) $334,282,697
Total volume (s.f.) 3,132,757
Number of transactions 14
Number of investment sales 8
0 1,500,000 3,000,000
Downtown
Southwest
Southeast
West
South
Northeast
Midtown
East
0
1,000,000
2,000,000
$0
$75,000,000
$150,000,000
$225,000,000
Class A Class B Class C
Total volume ($) Total volume (s.f.)
$0
$30
$60
$90
$120
Class A Class B Class C

7. Q3 2019
Employment
Cleveland Office Outlook
3.7%U.S. unemployment
1.4%U.S. 12-month job growth
4.1%Cleveland unemployment
1.2%Cleveland 12-month job growth
4.1%Ohio unemployment
0.4%Ohio 12-month job growth
-0.5%
0.2%
0.9%
1.6%
2.3%
3.0%
2015 2016 2017 2018 2019
Cleveland U.S.
-1,000
-1,000
-600
-300
-200
0
1,400
2,900
4,500
7,000
-6,700 -4,700 -2,700 -700 1,300 3,300 5,300 7,300 9,300
Trade, Transportation & Utilities
Financial Activities
Leisure & Hospitality
Other Services
Information
Manufacturing
Government
Mining, Logging & Construction
Educational & Health Services
Professional & Business Services
0%
4%
8%
12%
910,000
1,010,000
1,110,000
2015 2016 2017 2018 2019
Employment Unemployment
19%
17%
16%12%
11%
10%
6%
Educational & Health Services
Trade, Transportation & Utilities
Professional & Business Services
Government
Manufacturing
Leisure & Hospitality
Financial Activities
Mining, Logging & Construction
Other Services
Information
* Represents 12-month change in employment. All charts represent the latest economic data available from the Bureau of Labor Statistics as of September 2019.
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Job growth by sector*Historical employment
Job growth*
Employment by industry Office employment*
-2,000
500
3,000
5,500
8,000
10,500
2015 2016 2017 2018 2019
Professional & Business Services Information
Government Financial Activities

8. Andrew Batson
Vice President, Research
+1 216 937 4374
andrew.batson@am.jll.com
Johnathan Miller
Research Analyst
+1 216 937 4381
johnathan.miller@am.jll.com
Contact
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
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