The Cleveland office market has been performing steadily over the past few quarters. In the fourth quarter of 2021, the market saw some interesting trends that could shape its future. Let’s take a closer look at some of the key statistics from the Cleveland area office market in Q4.2021.
Office Vacancy Rates Remain Stable
The office vacancy rate in the Cleveland area remained stable at 13.5% in Q4.2021, which is consistent with the rate from the previous quarter. This rate is lower than the national average of 15.5%, indicating that Cleveland’s office market is in good shape compared to other cities across the country. The stable vacancy rate suggests that the market is well-balanced between supply and demand.
Rents Continue to Rise
Office rents in the Cleveland area continued to rise in Q4.2021, reaching an average of $21.75 per square foot. This represents an increase of 1.4% from the previous quarter and 4.4% from the same quarter in the previous year. The rising rents indicate that demand for office space is strong, and tenants are willing to pay a premium for prime locations.
Strong Absorption Rate
The Cleveland office market saw a strong absorption rate of 97,662 square feet in Q4.2021, indicating that the market is absorbing vacant space at a healthy pace. The strong absorption rate suggests that demand for office space is increasing. Tenants are actively seeking to lease new space. This trend is a positive sign for landlords and developers looking to invest in the Cleveland office market.
underway Construction Projects
Several new construction projects are underway in the Cleveland area, which could add more office space to the market in the coming months. Some of the notable projects include the One University Circle. A 20-story mixed-use building that will include office space, retail, and residential units. Another project is the proposed University Hospitals Health System’s expansion in Cleveland Heights, which would include a medical office building and a new hospital.
The Cleveland office market is in good shape heading into 2022. The stable vacancy rates, rising rents, strong absorption rates, and new construction projects indicate a healthy and growing market. These statistics suggest that the Cleveland office market is an attractive option for investors and tenants. Those who are looking for prime office space in a thriving city. As the market continues to grow, we can expect to see new opportunities for development and investment in the coming years.
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