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Downtown Cleveland Real Estate Market Update Quarter 3 2012 Summary - Downtown Cleveland Alliance

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Downtown Cleveland Real Estate Market Update Quarter 3 2012 Summary - Downtown Cleveland Alliance Powered By Docstoc
					Q3 2012
    Downtown Cleveland Alliance is the not-for-profit organization dedicated to building a dynamic downtown. It is com-
    mitted to making downtown Cleveland the most compelling place to live, work, play and visit in the region.
    Downtown Cleveland Alliance, working hand-in-hand with downtown property owners, creates forums for communi-
    cation and involvement by a diverse group of downtown stakeholders, including local development corporations, city
    and county governments, civic and arts organizations, residents, young professionals and business stakeholders. By
    facilitating the collaboration of these groups, DCA strives to enhance the quality of life in the urban core by implement-
    ing initiatives like the Clean & Safe Program, economic development assistance, marketing & special events, advocacy
    and strategic projects.
    Funding is provided by Downtown Cleveland property owners who have jointly agreed to a special assessment to be
    used to augment services. This is not a tax, and the funding does not take the place of tax-funded initiatives. It’s an in-
    vestment made by members to enhance the growth, improvement and development of Downtown Cleveland.




    ADDRESS: 50 Public Square, Suite #825, Cleveland, OH 44113           TELEPHONE:   216-736-7799      WEBSITE:   http://www.DowntownCleveland.com




1
Q3 : 2012   EXECUTIVE SUMMARY



            DOWNTOWN CLEVELAND MARKET UPDATE—QUARTER 3 SUMMARY

            Downtown Cleveland’s development boom continued in the third quarter. Recognizing the power of a downtown ad-
            dress to attract talent, businesses across the United States are exploring relocations to or expansions in downtown
            areas. Downtown Cleveland is following this national trend. As noted by CBRE, “We also are seeing an in-migration
            of suburban tenants to Downtown in an effort to attract and retain workers.” (CBRE MarketView Third Quarter 2012).
            The marquee office announcement this quarter was Alexander Mann Solutions decision to locate its North American
            operations center in Downtown Cleveland, which will bring at least 300 jobs to the central business district.
            Downtown office occupancy rates increased to 81.4 percent in the third quarter, up from 77.4 percent in the third quar-
            ter of 2011. The downtown office market also netted an increase of 56,975 square feet, marking 6 consecutive quarters
            of positive net absorption. Since the first quarter of 2011, Downtown Cleveland has experienced 477,862 square feet of
            positive net absorption. Downtown Cleveland Class A occupancy also continues to outpace that of surrounding suburbs.
            (Source: CBRE, Marketview, Third Quarter, 2012).
            Record high demand for downtown housing continues. This marks the second consecutive quarter of 97 percent apart-
            ment occupancy, and the sixth consecutive quarter of 95 percent or greater occupancy. Downtown Cleveland Alliance
            projects over 1000 apartment units will become available over the next 24 months to meet pent up demand.
            Downtown’s travel and tourism industry is also thriving. The Horseshoe Casino has attracted over 2 million visitors
            in less than 5 months. Positively Cleveland projects that the number of annual downtown visitors will increase from 3
            million to 6 million over the next year.
            Growth in the office, residential, and tourism markets is driving increasing interest from retailers. 15 new restaurants
            have opened in 2012 with more on the way, including J. Gumbo’s and Chipotle. Cumberland Development master-
            leased 60,000 square feet of retail space at the Colonial Marketplace and Euclid Arcades, creating new opportunities
            for resident and visitor oriented retail.
            RTA also expanded the free downtown trolley service to better connect commuters, visitors, and residents with central
            business district amenities. Of special interest to businesses is the NineTwelve Trolley, which connects the NineTwelve
            District to Downtown Cleveland’s most affordable parking.
            As we move into the 4th quarter, the momentum in Downtown Cleveland continues to build. With decisions on the hori-
            zon regarding the Cuyahoga County government’s real estate, the Cleveland Municipal School District Administration
            Building, and state historic tax credits, there has never been a better time to invest in Downtown Cleveland.




            Published October 2012




                                                                                                                                       2
    INNERBELT BRIDGE CONSTRUCTION
    The Ohio Department of Transportation and the Innerbelt Project Team work
    to replace the 53-year-old Innerbelt Bridge with two new bridges and expand
    the number of lanes from eight to 10. Crews are currently working to build the
    new westbound bridge – the first of the pair. Employing as many as 500 people
    and investing nearly $300 million dollars in greater Cleveland, the first new
    bridge alone is the largest infrastructure investment in ODOT history. The
    first new bridge will open in the fall of 2013, with work immediately beginning
    on the second bridge.




3
Q3 : 2012                                                                                                                            MAJOR INVESTMENTS & DEVELOPMENT UPDATE




EAST 5TH STREET ARCADES                                                  CUYAHOGA COUNTY PROPERTY SALE UPDATE                                 MEDICAL MART & CONVENTION CENTER




Cumberland Development President Dick Pace has master leased the         Bidding on Cuyahoga County’s 13 properties, which represents         New sod and grass is being laid atop Mall A; below is the new 750,000
60,000 square-foot historic shopping landmark, Colonial Marketplace      1.4 million square feet of real estate in downtown, closed in mid-   square feet Convention Center. Construction is scheduled to be com-
Arcade, now known as East 5th Street Arcades. Over 400 young             September. The county received 31 proposals from developers,         pleted in July 2013, two months ahead of schedule & under budget. The
professionals and downtown residents came together to share ideas on     property owners and others who seek to capture part of the dynamic   Convention Center has 17 meetings and shows scheduled for 2013, 12
what types of retail and ambience they’d patron at the East 5th Street   reinvestment and interest in Downtown Cleveland. Final selections    for 2014, nine for 2015. The Medical Mart, the first in the world, will
Arcades. Renewed investment is drawing interest from successful,         will be made and announced by the end of Q4.                         feature four floors of the world’s most advance medical technology:
local retailers.                                                                                                                              first floor - Health & Home Theme; second level - People, Patients, &
                                                                                                                                              Caregivers; third floor - Clinical Spaces; fourth floor- Healthcare IT.




                                                                                                                                                                                                                   4
MAJOR INVESTMENTS & DEVELOPMENT UPDATE




LAKEFRONT DEVELOPMENT                                                     TOWER AT ERIEVIEW                                                         TROLLEY LINES




Cleveland City Council approved legislation authorizing the city          The Tower at Erieview, a 40-floor skyscraper Downtown, is now of-         RTA introduced three new routes for its free trolleys in downtown
to enter into a one-year lease of 20-acre of the city’s lakefront with    fering $17M in tenant improvements to businesses seeking to expand        Cleveland and expanded their operating hours into evening and
Geis Cos. This allows Geis Cos. to begin pre-development work for         or relocate to this Downtown address. A new notable tenant includes       weekends. The C-Line trolley serves casino and convention visitors,
a lakefront office park. To develop the remaining 70 acres along the      London-based Alexander Mann Solutions, an international recruit-          the L-Line provides connections to lakefront destinations, and the
lakefront, Mayor Jackson announced a panel which will develop and         ment firm with clients such as Mercedes-Benz, plans to bring at least     NineTwelve Line links office workers to large parking facilities. In
review a request for proposals for a single developer or firm to lead a   300 jobs to Downtown Cleveland and its North American headquar-           partnership with Downtown Cleveland Alliance, RTA raised funds
comprehensive mixed-use plan.                                             ters. Winks, a Winking Lizard brand, opened its doors to crowds of        from local sponsors as a match in federal funding to operate the ex-
                                                                          fans in early October at the Galleria, which is connected to the iconic   panded service for three years.
                                                                          building.




5
Q3 : 2012




FLOTSAM & JETSAM
In partnership with the Port Authority of Cleveland, DCA Ambassadors now
man two custom-made boats on Cuyahoga River and in the Harbor. These
boats remove floating debris from the Cuyahoga River and downtown Lake
Erie shoreline. Debris removal is part of ongoing work to renew the river and
remove it from an EPA environmental watch list. The boats are part of the
Port’s broader mission to help restore the health of the river and serve as a
proactive environmental steward in and around Cleveland’s waterways. The
Port designed and built the aluminum vessels with a $425,160 grant from the U.S.
Environmental Protection Agency’s Great Lakes Restoration Initiative.




                                                                                   6
OFFICE MARKET UPDATE


OFFICE MARKET OVERVIEW
Increased demand for office space in the NineTwelve
District led to some of the greatest lease rate increases
in the region.
                                                                                                  2,966,698 SF
                                                                                                  AVAILABLE
Since first quarter 2011, vacancy has dropped 4.7% - from
23.3% to 18.6%
Public Square continues to have the lowest vacancy rate,
down 0.2% from last quarter – from 11.3% to 11.1%
                                                                                                  13,007,796 SF
According to Jones Lang LaSalle, small to medium sized
tenants are making up the bulk of leasing transactions.
                                                                                                  OCCUPIED




OFFICE MARKET ANNOUNCEMENTS
New Tenant Moves and Announcements:
Willis of Ohio, Inc., Osborn Engineering, Grant Thornton,
Bizdom, Cohen Fund Audit Services
General Market News:
The Hanna Annex transaction has been completed by The
K & D Group for $3.3 million. K & D will redevelop the
property as market rate apartments.




                                                                                                                                 84.3%
                                                                               81.4%
Cuyahoga County’s real estate portfolio of over 1.4 million




                                                                                                                       79.4%
                                                                     77.7%
square feet and received 31 bids in September.
Geis Companies announced plans to purchase Lakeside
Place (323 Lakeside Avenue).
Companies touring the market:*
Cuyahoga County ( 255,000 SF ); Northwestern Mutual
( 20,000 SF ); CMSD ( 70,000 SF ); Wells Fargo ( 60,000 SF );
Alexander Mann Solutions Corp. ( 50,000 SF ).                       Q3 2011 Q3 2012                                   Q3 2011 Q3 2012
*Jones Lang LaSalle                                             CBD OFFICE OCCUPANCY PERCENTAGE                   CLASS A OCCUPANCY RATE




7
Q3 : 2012                                                                                                                     OFFICE MARKET UPDATE


            QUARTERLY TRACKING
                                            2Q 2011            3Q 2011           4Q 2011           1Q 2012      2Q 2012           3Q 2012
            Net Absorption (SF)             57,428             103,964           281,078           93,521       44,914            56,975
            Vacancy                         22.9%              22.3%             19.8%             19.2%        18.9%             18.6%


            MAJOR LEASE TRANSACTIONS
            COMPANY NAME                    BUILDING                             LEASE TRANSACTION
            BrandMuscle                     1100 Superior                        42,162 SF (Attraction)
            Osborn Engineering Co.          1100 Superior                        27,033 SF (Retention)
            Willis of Ohio, Inc.            1001 Lakeside                        10,110 SF (Retention)


            The OM Group                    127 Public Square (Key Tower)        25,000 SF (Retention)
            Grant Thornton LLP              1375 E. 9th Street (One Cleveland)   20,000 SF (Retention)
            Renner Otto                     1621 Euclid (Keith Bldg)             14,000 SF (Retention)
            Ohio Business Machines          1111 Superior (Eaton Ctr)            8,000 SF (Attraction)
            Bizdom                          250 W. Huron                         7,000 SF (Retention)


            DOWNTOWN VS. SUBURBAN OFFICE SPACE OCCUPANCY
                                            CLEVELAND CBD                        CLEVELAND SUBURBS*
            Average Lease Rate $ SF/YR      $17.20                               $16.82
            Net Absorption (SF Quarterly)   56,975                               13,672
            Vacancy Rate                    18.6%                                21.8%


            MARKET COMPARISON BY CITY (CLASS A & B SPACE)
            CITY NAME                       RENTABLE SF        VACANCY RATE      NET ABSORPTION AVERAGE SF RATE SF CONSTRUCTION
            Indianapolis*                   11,449,718         17.5%             (7,023)†          $18.25       18,000
            Baltimore                       12,439,293         18.2%             13,479            $22.24       0
                                                                                                                                   † Year to Date Net Absorption
            Cleveland                       15,974,494         18.6%             56,975            $17.20       450,000
                                                                                                                                   * Includes Class C Office Space
            Columbus*                       11,360,991         17.7%             (81,206)          $17.30       331,300
                                                                                                                                   Office market data source CBRE unless otherwise
            Detroit*                        15,769,276         25.7%             135,594           $18.53       0                  noted




                                                                                                                                                                       8
HOUSING MARKET UPDATE


HOUSING MARKET OVERVIEW                                       NEW HOUSING PROJECT UPDATE
The downtown residential market continued to enjoy            DESCRIPTION                           LOCATION                          ESTIMATED UNITS            DEVELOPER
a record high occupancy rate of 97 percent even as the
market added 443 housing units. The third quarter marks       Truman Building                       1030 Euclid Avenue                26                Calabrese Racek Markos
6 consecutive quarters of 95 percent or greater occupancy.    Chester Commons                       1120 Chester Avenue               36                Calabrese Racek Markos
The rising demand for downtown housing also drove             Schofield Building                    2000 E. 9th Street                50                Calabrese Racek Markos
price per square foot up from $1.05 to $1.14. With multiple
                                                              Reserve Square                        1701 E. 12th Street               232*              K&D
buildings reporting wait lists of several hundred people
and many months, it is welcome news that over 1100 units      Hanna Annex                           2051 E. 14th Street               102               K&D
are projected to become available within the next 18-24       1717 East Ninth                       1717 E. 9th Street                223               K&D
months.                                                       Rosetta Building                      629 Euclid Avenue                 85                MRN
                                                              Avenue District                       1211 St. Clair Avenue             56†               Panzica / Zaremba / Geis
HOTEL MARKET OVERVIEW                                         The Langston                          2100-2200 Chester                 308‡              Polaris Real Estate
The increasing visitor traffic generated by new attractions
like the Horseshoe Casino and Greater Cleveland
Aquarium, in addition to attractions like the Rock & Roll
Hall of Fame & Museum and PlayhouseSquare, increased
hotel occupancy from 68 percent in September 2011 to 75       *After this addition, Reserve Square will have nearly 1,000 in total.
                                                                                                                                      1100
percent in September 2012. Positively Cleveland estimates                                                                             NEW RESIDENTIAL
                                                              †28 of the units are currently available for lease.                     UNITS AVAILABLE IN
that the number of annual visitors to Downtown Cleveland
will double to 6 million in 2013. This increase in visitor    ‡194 of the units are currently available for lease.                    THE NEXT 18 MONTHS
traffic, along with K&D’s conversion of the Embassy Suites
into market-rate apartments should propel new downtown
hotel development.




                                                              Hanna Annex currently under construction                                       Rendering of new apartments inside
                                                                                                                                             the Hanna Annex




9
Q3 : 2012                                                                                                                 HOUSING MARKET UPDATE


      HOUSING MARKET
                                       Q3 2011              Q3 2012
      RENTAL    Total Units:           4,171                4,636*
                Occupancy:             94.6%                97.0%
                PSF rental:            $1.05                $1.14
                *220 new rental units now online

      OWNED     Total Units:           936                  936
                Num. Sold:             18                   18
                Avg. Sale Price:       $304,413             $249,132
                PSF For Sale:          $210.70              $159.83



      HOTEL OCCUPANCY
                                       SEPT 2011            SEPT 2012
      Avg. daily rate:                 $112.25              $116.53
      REV per available room:          $75.86               $86.94
      Occupancy rate:                  67.7%                74.6%




      MAJOR HOTEL PROJECT UPDATE
      DESCRIPTION                      LOCATION                        ESTIMATED UNITS      ESTIMATED COMPLETION
      Westin                           777 St. Claire Ave              481                  Q1 2014
      Aloft                            W. 10 St                        140                  Spring 2013
      Kimpton                          E 9 & Euclid Ave                120                  Begins Construction Q1 2013




                                                                       741
                                                                       NEW HOTEL UNITS
                                                                       AVAILABLE IN
                                                                       THE NEXT 18 MONTHS



                                                                                                                                             10
RETAIL MARKET UPDATE


                       ARRIVED IN 2011                      ANNOUNCED FOR 2013
                       CLE Clothing                         Lago (Flats East Bank)
                       Noodle Cat                           Ken Stewart’s (Flats East Bank)
                       Taza                                 Toby Keith’s I Love This Bar (Flats East
                       Tavo                                 Bank)
                       Bar Louie                            Dos Tequilas (Flats East Bank)
                       Pura Vida                            Flip Side (Flats East Bank)
                       Constantino’s Market (expansion)     Willeyville (Flats East Bank)
                       The Bike Rack                        Urban Farmer (Westin Hotel)
                                                            Chipotle
                                                            Society Lounge
                       2012 TO DATE
                                                            Red the Steakhouse
                       Cleveland Pickle
                                                            Barroco Grill
                       Cowell & Hubbard
                                                            J. Gumbo’s
                       Colossal Cupcakes
                       Tilted Kilt
                       El Guero Mexican Grille
                       Hodge’s
                       GoodFellar’s
                       Nova Bar & Grill
                       Brgr9
                       Charka Exotic Indian Cuisine
                       Potbelly’s Sandwich Shop
                       Black Dog Kitchen & Bar
                       Rosie & Rocco (Horseshoe Casino)
                       B Spot (Horseshoe Casino)
                       Corky & Lenny’s (Horseshoe Casino)
                       Winks Bar and Grill
                       Black Dog Kitchen




11
Q3 : 2012                                                                                                                                                                                                                                                                                                                                                                                                        TRANSPORTATION MARKET UPDATE


GREATER CLEVELAND REGIONAL TRANSIT AUTHORIT Y                                                                                                                                                  STEP-BY-STEP:
MONTHLY RIDERSHIP REPORT: JUNE 2012                                                                                                                                                            3 EASY STEPS FOR USING THE NINETWELVE TROLLEY
                                                                                                                                                                                                                                                                                                                                                                                                                                  Using the new trolley is simple.
PERFORMANCE OVERVIEW:                                                                                                                                                                                                                                                                                                                                                                                                   Service times
                                                                                                                                                                                                                                                                                                                                                                                                                                  First. Select where you would like to park.
                                                                                                                                                                                                                                                                                                                                                                                                                        Monday–Friday           6:00 a.m. – 9:00 a.m.
Ridership comparisons between 2011 and 2012 are displayed below:
                                                                                                                                                                                                                                                                                                                                                                                                                        Monday–Friday                                      3:00 p.m. – 6:00 p.m.
                                                                                                                                                                                                                                                                                                                                                                                                                         • The Municipal Parking Lot (Muny) near I-90
                                              Q3 2012      Q3 2011                  Q3 DIFFERENCE
                                                                                                                                                                                                                       Cleveland




                                                                                                                                                                                                                                                                                                                                                                                                                        Frequency
                                                                                                                                                                                                                        Browns



                                                                                                                                                                                                                                                                                                                                                                                                                           is only $3.00 / day.
                                                                                                                                                                                                                        Stadium
                                                                                                                                                                                                                                                                                                                                                                                                                                  2




                  Bus                        8,305,836     8,179,843                1.54%                                                                                                                                  Lakefront                                                                                                                                                                                    Every 15 minutes
                                                                                                                                                                                                                                                                                                                                                                                                                                  • The Gateway East Garage near Quicken Loans
                                                                                                                                        Warehouse
                                                                                                                                                                                                             West 3rd
                                                                                                                                                                                                              Street       Attractions
                                                                                                                                                                                                                                    Amtrak
                                                                                                                                                                                                                                                                     (on request)
                                                                                                                                                                                                                                                                                           North
                                                                                                                                                                                                                                                                                           Coast                   Muny Lot
                                                                                                                                                                                                                                                                                                                      South
                                                                                                                                                                                                                                                                                                                      Harbor


                  Healthline                 1,172,900     1,140,300                2.86%                                               District
                                                                                                                                                        Flats
                                                                                                                                                                                                                                    Lakeside Ave                                                                                                   Lakeside Ave                                                                     Arena is just $4.00 for early bird commuters.
                                                                                                                                                                                                                                                                                                                                                                                                                        Schedule
                                                                                                                                                        East                                                                                                                                                                                            Success
                                                                                                                                                        Bank




                                                                                                                                                                                     W 6th




                                                                                                                                                                                                       W 3rd




                                                                                                                                                                                                                          Ontario




                                                                                                                                                                                                                                                 W Mall Dr



                                                                                                                                                                                                                                                                  E Mall Dr
                                                                                                                                                                                                                                                                                                                                                        Tech




                                                                                                                                                                                                                                                                                E 6th




                                                                                                                                                                                                                                                                                                   E 9th




                                                                                                                                                                                                                                                                                                                                E 12th
                  Total Bus                  9,478,736     9,320,143                1.67%                                                                                                                                                                                                                                                          East Side Æ
                                                                                                                                                                     Main Office                                                                                                                                                                        H.S.



                                                                                                                                                                                                                                                                                                                                                                                                                                  • The Cleveland Bike Rack (for bicycle
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                90
                                                                                            Flats




                                                                                                                                                                   W 9th
                                                                                            West
                                                                                            Bank
                                                                                                                                                                                                                                                                                                       St. Clair Ave
                                                                                                                                                                                                                                                                                                                                                                                                                        DEpart          arrivE    DEpart     arrivE
                                                                                                                                                                                                                                                                                                                                                                                                                        Muny Lot
                                                                                                                                                                                                                                                                                                                                                                                                                                                   $5.00 Muny or
                                                                                                                                                                                                                                                                                                                                                                                                                                    commuters) isHuron/E 6 a day, Lot $25.00 per
                                                                                                                                                                                                                                                                                                                                                                                                                                        Huron/E 6                          th             th


RAPID TRANSIT     Rail                       2,254,129     2,146,605 Flats 5.01%
                                                                  The
                                                                                                                            Settlers
                                                                                                                                                                                                                         Public Sq.
                                                                                                                                                                                                                         & Casino                                                                     Superior Ave
                                                                                                                                                                                                                                                                                                                                                                                                                        5:45 AM
                                                                                                                                                                                                                                                                                                                                                                                                                        6:00 AM
                                                                                                                                                                                                                                                                                                                                                                                                                                        5:59 AM
                                                                                                                                                                                                                                                                                                                                                                                                                                    month, to park your bike. AM
                                                                                                                                                                                                                                                                                                                                                                                                                                        6:14 AM
                                                                                                                                                                                                                                                                                                                                                                                                                                                  5:45 AM
                                                                                                                                                                                                                                                                                                                                                                                                                                                  6:00 AM
                                                                                                                                                                                                                                                                                                                                                                                                                                                             5:55 AM
                                                                                                                                                                                                                                                                                                                                                                                                                                                             6:10
                                                                                                                            Landing

                                                                                                                                                                                                                            Warehouse                                                                                                                                                                                   6:15 AM                               6:29 AM           6:15 AM        6:25 AM
PARATRANSIT       Paratransit                163,125       144,723                  12.72%




                                                                                                                                                                                                                                                                                                                                                                                                      E 18th
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                                                                                                                                                                                                                                                                                                                                                                                                                                  Second. Find your nearest trolley stop.
                                                                                                                                                                                                                                                Eu                                                                                                                  e Ave
                                                                                                                                                                                                                                                      clid
                                                                                                                                                                                                                                                                                                                                                                                                                        6:30 AM




                                                                                                                                                                                                                                                                                                                                                                                                                         E 21st
                                                                                                                                                      derme
                                                                                                                                                            re
                                                                                                                                                                                                                            District                          Ave                                                                                                                                                                       6:44 AM  6:30 AM 6:40 AM




                                                                                                                                                                                                                                                                                                                                                                                                                                       E 22nd
                                                                                                                                            t / Win
                                                                                                                                   Airpor                                                                                                                                                              Chester Ave




                                                                                                                                                                                                                                                                                                                                                                                                                                                E 23rd
                                                                                                                            ( 66 )




                                                                                                                                                                                                                                                                                                                                                                                                                                                         E 24th
                                                                                                                      ine
                                                                                                                 dL

                                                                                                                                                                                                                  East 4th                                                                                                                               Ch
                                                                                                                                                                                                                                                                                                                                                                                                                        6:45 AM                               6:59 AM           6:45 AM        6:55 AM




                                                                                                                                                                                                                                                                                                                                                                                                                                                                  E 25th
                                                                                                               Re                                                                                                                                                                                                                                            este
                                                                                                                                                                 West Prospect (S)                                                                                                                                                                                rA
                                                                                                                                                                                                                                                                                                                                                                    ve
                                                                                                                                                                                                                                                                                                                                                                                                                                                                    90


TROLLEYS          Trolleys (E & B Lines)*    271,966       237,559                  14.48%                              ah
                                                                                                                           o        ga River
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                                                                                                                                                                                                                                                                                                                                                                                                                        7:00 AM
                                                                                                                                                                                                                                                                                                                                                                                                                        7:15 AM   • Go to7:29 AMnearestAM
                                                                                                                                                                                                                                                                                                                                                                                                                                           the
                                                                                                                                                                                                                                                                                                                                                                                                                                                              7:14 AM           7:00 AM
                                                                                                                                                                                                                                                                                                                                                                                                                                                    7:15 trolley stop between 6:00am
                                                                                                                                                                                                                                                                                                                                                                                                                                                               7:25 AM
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               7:10 AM

                                                                                                                                                                                                                                                                                                                                                                                                                                                               7:40 are
                                                                                                                                                                                                                                                                                                                                                                                                                                    and 9:00am. Trolley stopsAM designated by a

                                                                                                               y
                                                                                                                                                                  West Prospect (N)
                                                                                                                                                                                                                                                                                                                                                                                                                        7:30 AM          7:44 AM    7:30 AM



                                                                                                            u
                                                                                                                                                                                                                                                             Huron Rd


                  Total Ridership
                                                                                                                                                                                                                                                                                                                                              Eu

                                             11,904,664    11,620,385               2.45%
                                                                                                       C
                                                                                                                                                                                                                                                                                                                                                clid
                                                                                                                                                                                                                                                                                                                                                       Ave

                                                                                                                                                                                                                                                                                                                                                                                                                        7:45 AM          7:59 AM    7:45 AM    7:55 AM
                                                                                                                                                                                                                                                                                                                                                                                                                        8:00 AM     "NineTwelve Trolley" sign.
                                                                                                                                                                                                                                                                                                                                                                                                                                         8:14 AM    8:00 AM    8:10 AM




                                                                                                                                                                                                                           Red e Line Line (6
                  *New Trolleys added 9/10/12, see below




                                                                                                                                                                                                                             Blu reen
                                                                                                                                                                                                                                                                                                                                                                                                                             Cleveland




                                                                                                                                                                                                                               Line (67) 7A)
                                                                                                                                                                                                                                                                                                                                                                                                                        8:15Stateity AM




                                                                                                                                                                                                                                G
                                                                                                                                                                                                                                                                                                                                                                                                                                                              8:29 AM           8:15 AM        8:25 AM




                                                                                                                                                                                                                                   (66)
                                                                                                                                                                                                                                                                                                                                                                                                                             U n i v e rs


                                                                                                                                                                                                                                                                                                                                                                                                                           • The NineTwelve AM 8:30 trolley will come every 15
                                                                                                                                                                                                                                                                                                                                                                      Pro                                                     Campus




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                                                                                                                                                                                                                                                   Sha
                                                                                                                                                                                                                                                                                                                                                                                                                        8:45 AM
                                                                                                                                                                                                                                                                                                           Capital University
                                                                                                                                                                                                                                                                                        ield                                                                      CSU
                                                                                                                                                                                                                                                                                                                                                                                                                                    8:59 AM    8:45 AM    8:55 AM




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                                                                                                                                                                                                                                                     n
                                                                                                                                                                                                                                                                                                                                                                                                                                                          9:10 in
                                                                                                                                                                                                                                                                                                                                                                                                                              minutes. The trolley runs AM a continuous loop
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                                                                                                                                                                                                                                                                                                                                                                Wolstein




                                                                                                                                                                                                                                                         rmer
                                                                                                                                                                                                                              Lorain Ave                                                                     Carnegie Ave                                      Convocation
                                                                                                                                                                                                                                                                                                                                                                                                                        9:00 AM




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                                                                                                                                                                                                                                                                                                                                                                                                                                    9:14 AM    9:00 AM




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                                                                                                                                                                                                                                                                                                                                                                 Center
                                                                                                                                                                                                                                                                                                                                                                                                               Stephanie Tubbs


                                                                                                                                                                                                                                                                                                                                                                                                                                    along DEpart
                                                                                                                                                                                                                                                                                                                                                                                                                              runs arrivE E. 9th Street with a turnaround at
                                                                                                                                                                                                                                                                                                                                                                                                               Jones Transit
                                                                                                                                                                                                                                                                                                                                                                                                               Center

                                                                                                                                                                                                                                                                                                                                                                                                                        DEpart                            arrivE
People are choosing to ride the Rapid downtown, and using the free trolleys or the
                                                                                                                                                                                                                                    90

                                                                                                                                                                                                                                                                                                                                                                                                                                            Prospect/Huron.
                                                                                                                                                                                                                                                                                                                                                                                                                              E. 4th and 6 2:45 PM 6 Muny LotYou can board a
                                                                                                                                                                                                                                                                                                                                                                                                                        Muny Lot    Huron/E    Huron/E
                                                                        W. 25 - Ohio City                                                                                                                         ay                                                                                                                                                               90                                                                                      th             th
                                                                        Rapid Station                                                                                                                       Freew
                                                                                                                                                                                                     Belt
                                                                                                                                                                                             Inner




HealthLine, to complete their trips. On the Red Line, average weekday ridership is up 10%                                                                                                                      the ninetwelve Line                                                                                                                                                 St. Vincent
                                                                                                                                                                                                                                                                                                                                                                                                                        2:49 PM
                                                                                                                                                                                                                                                                                                                                                                                                                        3:04 PM
                                                                                                                                                                                                                                                                                                                                                                                                                                    2:59 PM
                                                                                                                                                                                                                                                                                                                                                                                                                                    3:14 PM    3:00 of
                                                                                                                                                                                                                                                                                                                                                                                                                                                          2:59 PM
                                                                                                                                                                                                                                                                                                                                                                                                                              trolley at any onePM the numerous stops in
                                                                                                                                                                                                                                                                                                                                                                                                                                                          3:14 PM
in September.
                                                                                                                                                                                                                                                                                                                                                                                   Charity Hospital


                                                                                                                                                                                                               There is now a fast and free way to shuttle                                                                                                                                                                    either direction. PM
                                                                                                                                                                                                                                                                                                                                                                                                                        3:19 PM
                                                                                                                                                                                                                                                                                                                                                                                                                        3:34 PM
                                                                                                                                                                                                                                                                                                                                                                                                                                    3:29 PM
                                                                                                                                                                                                                                                                                                                                                                                                                                    3:44 PM
                                                                                                                                                                                                                                                                                                                                                                                                                                               3:15
                                                                                                                                                                                                                                                                                                                                                                                                                                               3:30 PM
                                                                                                                                                                                                                                                                                                                                                                                                                                                          3:29 PM
                                                                                                                                                                                                                                                                                                                                                                                                                                                          3:44 PM
                                                                                                                                                                                                               between the Municipal Parking Lot and work
September 2012: 5,219 bikes boarded, 5.8% increase from September 2011. Year To Date
                                                                                               Fa
                                                                                                    ir fi
                                                                                                         eld
                                                                                                               Av
                                                                                                                                                                                                                                                                                                                                                                                                                        3:49           PM                     3:59 PM           3:45 PM        3:59 PM
                                                                                                                                                                                                                                                                                                                                                                                                                                  Third. Enjoy a quick, easy trip…
                                                                                                                  e

                                                                                                                                                                                                               with RTA’s NineTwelve Trolley. The Trolley picks
totals 34,622 bike trips.                                                                                                                                                                                                                                                                                                                                                                                               4:04       PM    4:14 PM  4:00 PM  4:14 PM
                                                                                                                                                                                                                                                                                                                                                                 Unified
                                                                                                                                                                                                                                                                                                                                         77                   Technologies

                                                                         Tremont                                                                                                                               up every 15 minutes during the morning and                                                                                                        Center

                                                                                                                                                                                                                                                                                                                                                                                                                        4:19           PM                     4:29 PM           4:15 PM        4:29 PM
                                                                                                                                                                                                                                                             Cuyahoga
                                                                                                                                                                                                                  H
Real-Time information is available and being used by many customers. It provides the next                                                                                                                      afternoon rush periods, stops at offices along Campus                                                                                                                                                                              at the 4:44 PM
                                                                                                                                                                                                                                                                                                                                                                                                                                  …and disembark4:30 PM stop nearest to your place
                                                                                                                                                                                                                                                             Community                                                                                                                                                                Jane Addams

                                                                                               90                                                                                                                                                             College                                                                                                                                                   4:34       PM    4:44 PM
                                                                                                                                                                                                                                                                                                                                                                                                                                       Vocational
                                                                                                                                                                                                                                                                                                                                                                                                                                      High School
                                                                                                                                                                                                                                                            Metro
                                                                                                                                                                                                               E. 9th Street to the Gateway District, and is                                                                                                                                                            4:49       PM    4:59 PM 4:45 PM  4:59 PM
three buses or trains coming to the customer’s stop. www.riderta.com/nextconnect/                                                                                                                              free to ride. Signs identify the stops along the                                                                                                                                                         5:04      of employment in the NineTwelve District.
                                                                                                                                                                                                                                                                                                                                                                                                                                   PM    5:14 PM 5:00 PM  5:14 PM
                                                                                                                                                                                                                                                                                                                                                                                                                        5:19           PM                     5:29 PM           5:15 PM        5:29 PM
Trolley ridership for Q3 2012 compares E-Line and B-Line with Q3 2011. Not included                                                                                                                            route, which is serviced by RTA Trolleys.
                                                                                                                                                                                                                                                                                                                                                                                                                        5:34
                                                                                                                                                                                                                                                                                                                                                                                                                                                              parked, simply
                                                                                                                                                                                                                                                                                                                                                                                                                                  • To return to where you5:44 PM
                                                                                                                                                                                                                                                                                                                                                                                                                                   PM    5:44 PM  5:30 PM
in this comparison are the new trolley routes, which went into service 9/10/12 and have                                                                                                                                                                                                                                                                                                                                 5:49       PM    5:59 PM  5:45 PM   5:59 PM
                                                                                                                                                                                                                                                                                                                                                                                                                        6:04                                Trolley at one of
                                                                                                                                                                                                                                                                                                                                                                                                                                    board the NineTwelve 6:14 PM
                                                                                                                                                                                                                                                                                                                                                                                                                                   PM    6:14 PM  6:00 PM
carried approximately 7,000 customers in September. The new trolley lines are the C-Line,
                                                                                                                                                                                                                                                                                                                                                                                                                                    the designated stops between 3:00pm and
L-Line and NineTwelve Line. All trolleys are ‘free with a smile’.
                                                                                                                                                                                                                                                                                                                                                                                                                                    6:00pm. Disembark at the trolley stop nearest
                                                                                                                                                                                                                                                                                                                                                                                                                                    where you parked, walk to your car or bicycle,
                                                                                                                                                                                                                                                                                                                                                                                                                                    and quickly slip out of downtown.

                                                                                                                                                                                                                                                                                                                                                                                                                                  It's that easy!




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         12
Cover photo:
© 2012 Aerial Aspect Photography

				
DOCUMENT INFO
Description: Downtown Cleveland Real Estate Market Update Quarter 3 2012 Summary - Downtown Cleveland Alliance. Downtown Cleveland’s development boom continued in the third quarter. Recognizing the power of a downtown address to attract talent, businesses across the United States are exploring relocations to or expansions in downtown areas. Downtown Cleveland is following this national trend. As noted by CBRE, “We also are seeing an in-migration of suburban tenants to Downtown in an effort to attract and retain workers.” (CBRE MarketView Third Quarter 2012). The marquee office announcement this quarter was Alexander Mann Solutions decision to locate its North American operations center in Downtown Cleveland, which will bring at least 300 jobs to the central business district. Downtown office occupancy rates increased to 81.4 percent in the third quarter, up from 77.4 percent in the third quar-ter of 2011. The downtown office market also netted an increase of 56,975 square feet, marking 6 consecutive quarters of positive net absorption. Since the first quarter of 2011, Downtown Cleveland has experienced 477,862 square feet of positive net absorption. Downtown Cleveland Class A occupancy also continues to outpace that of surrounding suburbs. (Source: CBRE, Marketview, Third Quarter, 2012). Record high demand for downtown housing continues. This marks the second consecutive quarter of 97 percent apart-ment occupancy, and the sixth consecutive quarter of 95 percent or greater occupancy. Downtown Cleveland Alliance projects over 1000 apartment units will become available over the next 24 months to meet pent up demand. Downtown’s travel and tourism industry is also thriving. The Horseshoe Casino has attracted over 2 million visitors in less than 5 months. Positively Cleveland projects that the number of annual downtown visitors will increase from 3 million to 6 million over the next year. Growth in the office, residential, and tourism markets is driving increasing interest fr