CLEVELAND—Office sales have increased steadily in the Cleveland metro area since 2010 and, driven by out-of-state investors, is now approaching prerecession levels, according to a new study by JLL. In just the last two years office investment sales here have totaled more than $550 million. And the firm believes these buyers will keep sending their money to Cleveland in 2018.
“Cap rates have steadily compressed in the principal markets, and prices have really ramped up,” Andrew Batson, Cleveland-based vice president and director of research, tells GlobeSt.com. “Generally, investors are now looking inward and chasing yields.”
And Cleveland, like many older cities in the Midwest, has seen the fortunes of its CBD greatly improve. Millennials and empty nesters have flocked to luxury apartments in and near the downtown, and that has led many companies to lease space in the CBD. In addition, developers have converted much of the downtown's office space into apartments, further tightening the market.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
