Population: The population in Cleveland in the 2Q of 2022 was 2,072,858. This represents a decrease in total population of 7,623 over the course of the last year. During 2021 Q2, the Cleveland population stood at 2,080,481. The number of people employed rose to 1,061,071 in 2022 Q2 from 1,048,625 over the last quarter, an increase of 12,446 or 1.19% for the period.
Median Income: The median household income for Cleveland in the 2Q of 2022 was $63,199. At this time last year, the median household income was $57,978. 2022 Q2 median income represents a quarter-over-quarter increase of 1.98% and a year-over-year increase of 9.01%. Cleveland has a median household income lower than the U.S. average, which is $72,996.
Office leasing: Overall office base rent rates have decreased by $0.35/SF. They went from $17.74/SF in 2022 Q1 to $17.39/SF in this most recent quarter. Office rates grew in 2022 Q2 when compared to last year’s quarter, when the average office base rent was $16.92/SF.
Vacancy rates also went from 7.80% to 8.20%. They stood at 7.60% this time last year. The overall vacancy rate is not expected to change next quarter.
In the Cleveland market’s central business district (CBD) specifically, 2022 Q2 base rents stood at $21.01/SF, an increase from $20.99/SF in 2022 Q1. When compared to last year’s quarter, CBD office rates decreased from $21.62.
CBD vacancy rates went from 9.72% to 9.97%. The CBD vacancy rate is expected to decrease to 9.95% next quarter.
For investors, the cap rate during 2022 Q2 was 6.20%, compared to the previous quarter’s cap rate of 6.10%. The cap rate was 9.6% this quarter last year.
In terms of transaction volume, there were 40 sales transactions during the period. That’s a decrease compared to the 49 transactions in the previous period. Last year at this time, there were 53 transactions. In terms of transaction amounts, office transactions were valued at $94,108,712 in 2022 Q2. That’s an increase compared to $53,751,828 of transaction value in the previous period. Last year at this time, office transactions were valued at $14,150,840.
Industrial leasing: For the Cleveland, OH industrial sector, we look at warehouse and distribution spaces specifically. Overall industrial base rent rates have increased by $0.10/SF. They went from $5.55 in 2022 Q1 to $5.65/SF in this most recent quarter. Warehouse and distribution rates grew in 2022 Q2 when compared to last year’s quarter, when industrial base rent was $5.28/SF.
In 2022 Q2, the industrial market grew in Cleveland by 1.80% versus 2022 Q1. Vacancy rates did not change from Q1 2022 to Q2 2022. Next quarter, the vacancy rate is expected to decrease from 4.20% to 4.10%.
For investors, the industrial cap rate during 2022 Q2 was 8.39%, compared to the previous quarter’s cap rate of 8.5%. The cap rate was 6.80% this quarter last year.
In terms of sales volume, industrial transactions were valued at $122,196,952 during the quarter. That’s an increase compared to $91,583,848 of transaction value in the previous quarter. Last year at this time, industrial sales transactions totaled $120,145,728.
All data aggregated in this report is provided by CoStar Realty Information Inc. CoStar is a provider of information, analytics and marketing services to the commercial property industry in the United States, Canada, the United Kingdom, France, Germany, and Spain.