West Side Cleveland Multi-Tenant Market Report
Market Overview
The West side of Cleveland offers a blend of old-world charm and modern attractions, with notable landmarks like the West Side Market, a historic public market dating back to 1912, which continues to draw food enthusiasts from near and far. This area is also known for its strong sense of community, hosting various festivals, events, and cultural celebrations throughout the year, making it a unique and lively part of Cleveland. The following report includes multi-tenant data from the West and Southwest submarkets.
Highlights
- General Retail is the largest subtype within the West submarket, accounting for around 9 million square feet.
- The Southwest submarket recorded a 12-month sales volume of $60.2 million.
West
Rents | Vacancy | Construction | Sales
The West retail submarket maintains one of the lowest vacancy rates in the market, sitting at 2.8%. Limited availability has kept demand relatively muted, resulting in an annual net absorption of 31,500 square feet. Current rents are approximately $17.75 per square foot, representing a 4.8% increase in annual rent growth, matching the market average. There is limited new development, with only 3,345 square feet currently underway.
The West retail submarket has recently experienced an investment slowdown, but there are notable highlights to consider. Over the past 12 months, total sales volume reached $36.2 million, which is more than double the prior three-year average. Many of the largest sales in the market over the past year involved freestanding net lease deals. Net lease deals, particularly in the Midwest, like Cleveland, are attractive in a high-interest-rate environment, offering cap rates above the national average.
West by the Numbers Last 12 Months
- Vacancy Rate: 2.8%
- Rent Growth: 4.8%
- Deliveries SF: 69.3K
- Sales Volume: $36.2M
Southwest
Rents | Vacancy | Construction | Sales
The vacancy rate in the Southwest retail submarket is 5.1%, just above the overall market average, with 53,900 square feet absorbed in the 12 months. Construction activity has been moderate, with less than 100,000 square feet added in the last two years, and the current pipeline has 62,781 square feet under construction. Rental rates in the Southwest Submarket average around $14.92 per square foot. Mall space commands the highest rents at just over $23.00 per square foot, slightly above the market average for malls.
There has been strong and active investment in the Southwest retail submarket in Cleveland, with notable transactions and investor interest in stable income-generating assets. Sales volume has totaled more than $400 million over the past three years. These sales account for 23% of the total sales in the Cleveland market. Transaction activity has remained strong, with $60.2 million worth of properties changing hands over the trailing 12-month period.
Southwest by the Numbers Last 12 Months
- Vacancy Rate: 5.1%
- Rent Growth: 4.4%
- Deliveries SF: 32.7K
- Sales Volume: $60.2M
