Cleveland Retail Market Report
Cleveland’s Economic Underperformance and Store Closures Impacting Retail Fundamentals
Retail struggles to recover from pandemic. Restrained employment and household growth will hamper Cleveland’s economic recovery this year. The metro will fail to regain all of the jobs lost during the coronavirus shutdown, which will weigh on household formation. As a result, retail sales are forecast to rise at a slower pace than the nation in 2021 and will likely suppress retailer demand for space. Last year, J.C. Penney and Bed Bath & Beyond were among the companies shuttering sites, which produced negative annual absorption for the first time since 2009. This year, additional retail closures including a 190,000-square-foot Macy’s in the Great Lakes Mall will outpace leasing activity and push the vacancy rate even higher.