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Market Report

Cleveland Retail Market Report

3Q 2022

Expanding Retail Operations Boost Employment;
Low Development Fosters Tight Conditions in Core

Metro job count rises as retailers expand. Total employment in the accommodations and food services sector has accounted for roughly 45 percent of the positions added in the first eight months of 2022 . Strong net absorption in the market signals that retailers have continued to grow not only their staffs, but also the space they occupy. In the second quarter, vacancy compressed 50 basis points on an annual basis. Space was predominantly absorbed by grocery stores and apparel retailers. Rising leasing activity can be attributed to retailers entering newly renter-dense areas to provide necessity goods, as multifamily additions in Cleveland outpaced the mean number of additions across major U.S. markets. As consumer spending habits begin to normalize, retailers are seeking space in these locales with high household formation, such as in Downtown where apartment inventory more than doubled in the last 12 years, corresponding to tightening retail vacancy.
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