Greater Downtown Vision Updates
Downtown Economy
*Metrics are quarterly unless otherwise noted.
Spending
$60.6M
Total Downtown Spending
Analysis
Spending in Q3 estimated around $60.6M. Top spending categories include Leisure, Recreation, & Entertainment; Accommodations; and Nightlife. These spending metrics are consistent with the market dynamics identified in our Retail Strategy, which recognizes that downtown’s retail success depends not only attracting visitors, but also on better serving residents, workers, and visitors.
Why we report it
Spending data gives us a measurable view of downtown's economic activity and consumer demand. By analyzing the spending data, we're able to identify trends in consumer behavior and understand which spending categories are driving activity. These insights help inform business attraction and retention efforts, identify market opportunities, and guide investments that strengthen downtown Cleveland's growth.
How we source
We use Datafy to measure downtown visitation and consumer spending, using location and transaction data to estimate visitor activity, spending levels, spending by business category, and where downtown visitors come from. Datafy is FCC certified and primarily sources spending data from point-of-sale transactions with major credit card companies.
Employment
Downtown Job Density
43 Jobs/Acre
Downtown Employment
82K+ Jobs
Analysis
According to IDA’s standards of an established downtown, our job density needs to reach 51. At 51 jobs per acre, downtown Cleveland will have a high density of workers and generate the highest assessed land values.
Downtown Cleveland represents 2.9% of the City’s overall land mass, 30% of the City’s jobs, and brings in 60% of income tax revenue, and 25% of the City’s property tax revenue.
Why we report it
Tracking job density gives us a consistent way to measure downtown’s role as a center of employment and to monitor how development, office occupancy, business growth, and land use are shaping the downtown economy over time. Job density is calculated by the total number of jobs in a specific area divided by the land area.
Downtown is a critical economic engine for Cleveland and the region, generating significant economic activity, supporting jobs and businesses, and contributing to economic growth that extends well beyond the downtown district.
How we source
We source employment data from the U.S. Census Bureau, providing reliable demographic, economic, and population data for downtown Cleveland and the surrounding market. The most recently published results are from the Bureau’s 2023 report, and our input of a custom shapefile of our downtown boundary.
We report the Census Bureau’s number of Primary Jobs, which includes private and public-sector jobs. This counts one job per worker. If an individual worker has more than one job, it counts the highest paying job for that individual.
Office
Total Downtown Office Space (ft²): 14M ft²
Office Lease Rate: $20.38
Office Occupancy: 74.4%
Class A Occupancy: 79.9%
Q3 Net Absorption: 56K ft²
Analysis
Downtown Cleveland's office market is experiencing a broader occupancy challenge, but its Class A buildings are performing competitively with peer downtowns. At 79.9%, Cleveland's Class A occupancy is the highest among the peer markets analyzed (Milwaukee, Pittsburgh, and Indianapolis), despite having a smaller Class A inventory than Indianapolis and Pittsburgh.
The gap between Cleveland's overall occupancy and its Class A occupancy suggests that vacancy is concentrated disproportionately in older office inventory. This reinforces the importance of strategies that support the repositioning, reuse, and redevelopment of aging office space while continuing to attract businesses to the market's strongest assets. As new to market tenants look for lesser square footage than in previous years, the flight to quality and flexible office space will continue to be a trend to watch.
Why we report it
Analyzing downtown office metrics allows us to identify market trends, measure progress against peer cities, and understand where opportunities exist for business attraction, retention, and reinvestment. Reporting metrics strengthens broker engagement and partnership in knowing the market. Keeping these conversations consistent reveals new tenants to the market, allowing for joint attraction efforts and new leases signed.
Office occupancy is also directly connected to the broader measures of downtown success: job density drives daytime population and foot traffic. Both job and residential density tell a more complete story of downtown's economic vitality and help us measure whether our investments in safety, connectivity, and activation are translating into sustained growth.
How we source
We source our office market data from CBRE’s quarterly office reports and supplement it with ongoing conversations with brokers at major brokerage firms active in the downtown market. This combination of quantitative data and on-the-ground market intelligence helps us understand vacancy, demand, leasing activity, and emerging trends across downtown. This market knowledge is critical to the Retail Strategy implementation of attracting and retaining businesses. It allows us to: Know the Market; Curate the Mix; Tell the Story; Clear the Path; and Activate the Network.