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Market Report

Cleveland Office Market Report

4Q 2023

Office-to-Apartment Conversions Aid CBD Vacancy,
While Suburbs Register the Majority of Demand

Upward pressure on vacancy slowed by redevelopment. Entering the third quarter, Cleveland was home to the lowest office vacancy among major Midwest markets at 12.1 percent. Sub-1 percent inventory growth for 14 consecutive years, and many successful office-to-residential conversions, continue to steer traditional office-using firms to existing spaces. The metro is a leader in office redevelopment, with nearly 2,700 apartments currently planned to be created from adaptive reuse. As obsolete office space continues to be taken off the market and new supply remains limited, vacancy pressure will ease long-term, particularly as companies solidify their long-term office requirements. Sherwin-Williams has already reinforced the company’s dedication to maintain an in-person workforce in Cleveland, as the firm decided to move forward with a new global headquarters that is slated to deliver downtown next year.
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