JLL’s New Skyline Report Shows Cleveland Tenants Willing to Pay Premium
JLL’s 2018 skyline report shows Cleveland tenants are willing to pay premium for amenities, brand visibility and recruiting efforts.
Cleveland, Sept. 27, 2018 – In the seventh annual Cleveland Skyline Review, JLL examines the dynamics of the Downtown Cleveland office market and address the top trends impacting both tenants and investors. This report also identifies the pricing and availability of space in Downtown Cleveland’s largest multi- tenant office buildings.
This report shows that flight to quality is a dominating trend in Cleveland with tenants displaying willingness to pay premium for Class A building for amenities, brand visibility and recruiting efforts. Adaptive reuse of 18 functionally obsolete buildings to residential and hotel use has taken more than 4.5 million square feet of office space off the market, dramatically reducing vacancies. Additionally, landlords are investing significant dollars in building upgrades to attract blue chip tenants and appeal to the millennial workforce.
More than a dozen companies have relocated to downtown, bringing 2,000+ jobs to the city and absorbing 500,000 square feet of office space along the way.
The Mayor of Cleveland, Frank Jackson, elaborates: “With a focus on innovation and technology, Cleveland is becoming a location of choice for established businesses, entrepreneurs and their employees. Downtown Cleveland is transforming into a vibrant 24/7 hub of activity with new development, new amenities, new businesses and new residents.”
Higher yields, relatively low barriers to entry and positive underlying market fundamentals have boosted investment sales dramatically with significant interest from out-of-state buyers.
For more information on JLL’s Cleveland office, please visit www.us.jll.com/en/locations/midwest.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 90,000 as of December 31, 2018. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.