Population: The population in Cleveland in the 3Q of 2022 was 2,067,294. This represents a decrease in total population of 8,529 over the course of the last year. During 2021 Q3, the Cleveland population stood at 2,075,823. The number of people employed rose to 1,066,423 in 2022 Q3 from 1,057,244 over the last quarter, an increase of 9,179 or 0.87% for the period.
Median Income: The median household income for Cleveland in the 3Q of 2022 was $65,075. At this time last year, the median household income was $59,565. 2022 Q3 median income represents a quarter-over-quarter increase of 2.02% and a year-over-year increase of 9.25%. Cleveland has a median household income less than the U.S. average, which is $74,848.
Office leasing: Overall office base rent rates have decreased by $0.09/SF. They went from $17.58/SF in 2022 Q2 to $17.49/SF in this most recent quarter. Office rates grew in 2022 Q3 when compared to last year's quarter, when office base rent was $17.29/SF.
Vacancy rates remained the same at 7.70% quarter over quarter. They stood at 7.50% this time last year. The vacancy rate is expected to increase from 7.70% to 8.40% next quarter.
In the Cleveland market’s central business district (CBD) specifically, 2022 Q3 base rents stood at $20.87/SF, the same as base rents in 2022 Q2. When compared to last year’s quarter, CBD office rates decreased from $20.91.
CBD vacancy rates went from 8.71% to 8.69% quarter over quarter. The CBD vacancy rate is expected to increase to 8.88% next quarter.
For investors, the cap rate during 2022 Q3 was 7.20%, compared to the previous quarter's cap rate of 6.60%. The cap rate was 8.60% this quarter last year.
In terms of transaction volume, there were 41 sales transactions during the period. That's a decrease compared to the 53 transactions in the previous period. Last year at this time, there were 51 transactions. In terms of transaction amounts, office transactions were valued at $74,392,664 in 2022 Q3. That's a decrease compared to $112,612,912 of transaction value in the previous period. Last year at this time, office transactions were valued at $88,582,808.
Industrial leasing: For the Cleveland, OH industrial sector, we look at warehouse and distribution spaces specifically. Overall industrial base rent rates have increased by $0.13/SF. They went from $5.83 in 2022 Q2 to $5.96/SF in this most recent quarter. Warehouse and distribution rates grew in 2022 Q3 when compared to last year's quarter, when industrial base rent was $5.49/SF.
In 2022 Q3, industrial market rent rates grew in Cleveland by 2.20% versus 2022 Q2. Vacancy rates went from 4.20% to 4.10%. Next quarter, the vacancy rate is expected to drop to 3.90%.
For investors, the industrial cap rate during 2022 Q3 was 8.50%, an increase compared to the 6.30% cap rate of this quarter last year.
In terms of sales volume, industrial transactions were valued at $172,128,704 during the quarter. That's a decrease compared to $186,137,088 of transaction value in the previous quarter. Last year at this time, industrial sales transactions totaled $75,498,608.