Cleveland Retail Market Report
Cleveland’s Retail Sector Commences Recovery as Investors Scour Market for High-Yielding Assets
Return of positive absorption tied to single-tenant demand. Cleveland’s retail sector demonstrated its first signs of recovery in the second quarter of 2021 as 200,000 square feet of space was absorbed. While far from a historical performance, the re-emergence of positive leasing momentum was a welcome occurrence for a metro where vacant stock increased by 1.7 million square feet during the prior 12 months. Encouraging conditions were relatively widespread from April through June as 11 of 16 submarkets recorded positive absorption amid an overall improvement in single-tenant demand. Highlighting the list of recent lease executions was Marc’s commitment to a 54,000-square-foot former Kmart in Brunswick and discount department store Ross signing on for 31,000 square feet in Beachwood. Additionally, Lowe’s inked a renewal for 122,000 square feet in Mentor, which limited the volume of space that returned to the market.