No doubt, Downtown Cleveland is among the most vibrant and growing metropolises in the Greater Lakes region. This comes with myriads of opportunities for local business owners to thrive and expand their ventures. In 2023, the district saw several new skyscrapers adding to the alluring downtown skyline and myriads of storefront projects breaking ground. Numerous companies announced expansion plans, with more newcomers setting base. More impressively, the year ended with the metro recording one of the fastest recovery rates in the Great Lakes region. Here is a summary of the 2023 Downtown Cleveland Economic Development Report. We highlighted excellent strides across the city’s corporate and social landscape. 

Downtown Cleveland Post-Covid recovery

Ranked position three, Downtown Cleveland recorded one of the most impressive post-pandemic recovery rates in the Great Lakes region. According to a Center City District report, the city sits at the apex of the nation’s top 26 metro areas. In 2023, visitor foot traffic activity surpassed 90% of pre-pandemic levels and is expected to breach the pre-pandemic levels in 2024. 

Warm and vibrant public spaces

By design, Downtown’s public spaces provide a vibrant and warm environment to support socio-economic activities. Currently, the city is implementing several programs geared at improving its outdoor amenities for public use. In 2023, the metro implemented 28 programs for 155 days to maintain a vibrant and fun atmosphere in all four seasons. These initiatives injected life into 13 public areas.

A thriving retail strategy

A flourishing storefront scene is pivotal to the economic progress of any city. A recent report reveals that 70% of Downtown’s expenditure is attributed to visitor traffic, emphasizing the need for vibrant retail offerings to gather for a growing residential community. Consequently, Downtown welcomed 33 New Storefront Openings in 2023 alone. These stores are diverse and offer a mix of products from apparel and hobby stores to home goods, hardware, and general services. At the beginning of 2023, the city, together with Streetsense, developed a Downtown Retail Strategy tailored to suit emerging market dynamics and requirements. The diagnostic segment of the strategy predicts a growing retail sector in the mid-term despite the 20-25% vacancy in retail spaces. 

Notable investments made in Downtown

As of December 2023, over $1.4 billion worth of investments had been completed in Downtown. Most of these investments are spread over the Public Square and include noteworthy companies including the K&D Group. They finalized The Residences at 55, contributing 202 rental units to Downtown’s housing inventory, and Sherwin-Williams, with their new global headquarters set to accommodate over 3,500 employees by the close of 2024. There are also several projects near completion, including the renovation of the former Renaissance Hotel, now renamed Hotel Cleveland, and the Fidelity Hotel. These projects have greatly elevated the city’s real estate sector, with CBRE crowning Downtown Cleveland as the top city in the nation for its office space conversions into residential units.

Office space development

The city realized the highest return-to-office rates, reaching 64% as of August 2023. For the third year, employers favored Class A spaces with amenities, albeit often with smaller office sizes. This preference was noticeable throughout both Q3 and Q4 of 2023. Downtown areas experienced a positive net absorption in the office market for the first time in five quarters, with the overall office occupancy rate maintaining around 82.7%.

Rising demand for Downtown housing

With a rising population of 26,000 residents by 2032, Downtown Cleveland enjoys a stable demand for housing. As of Dec 2023, 91% of downtown apartments were occupied. Several residential housing projects are running, including the Bell and Ten60 Bolivar, slated to debut at the end of 2024. Another noteworthy project is the City Club Apartments, dubbed the newest infill development on a former surface parking lot. Collectively, these projects bring to the market an additional 850 units.

Visitor numbers

Downtown’s visitor numbers will reach the pre-pandemic levels in 2024. The City hosts several significant events this year, including the NCAA Women’s Final Four, a total solar eclipse, the MAC Basketball Tournament, and the Pan American Games. The recently renovated Huntington Convention Center has greatly enhanced Downtown’s ability to host large-scale events, further establishing the metro as a premier destination. It is also worth noting Cleveland Hopkins International Airport recorded rising passenger volume in 2023, reaching 9.9 million passengers. 

Contact Brenden Kelley Law for strategic advice and local insights

With over 21,000 people calling Downtown Cleveland home, there is no doubt the metro stands as one of the most extensive neighborhoods in the region, experiencing a 22% increase over the past decade. This upward trend is projected to persist, with Cleveland ranking among the top 5 growing cities drawing in visitors post-pandemic. While the office, residential, and retail sectors display significant potential, the most reliable gauge of downtown’s path is the robust portfolio of current and forthcoming investments. Discover how your business can thrive in Cleveland’s growing economy. Contact Brenden Kelley Law for strategic advice and local insights.