JLL explores some of the frequently asked questions about downtown Cleveland’s business environment and growing residential population.

1. Downtown Cleveland
Frequently asked questions

2. This slide deck explores some of the frequently asked questions about downtown Cleveland’s
business environment and growing residential population. Some of those questions are:
• What percentage of companies in the region are headquartered downtown?
• Who are the largest employers that are not headquartered downtown?
• How many people work downtown and how does that compare to historical levels?
• What percentage of downtown residents work downtown?
• What percentage of downtown residents are Millennials vs Baby Boomers vs Generation Z?
• How many people live downtown and how has that grown in recent years?
• How much more residential development can downtown support?
Introduction

3. Only 19% of the top 100 employers in
Northeast Ohio are headquartered
downtown.
Urban migration has been a prevailing trend
over the last five years. Given that 81% of
Cleveland’s largest employers are still
located in the suburbs, we believe that the
suburban-to-urban trend will continue for a
number of years to come.
Downtown vs. suburban headquarters
Downtown
headquarters
19%
Suburban
headquarters
81%
Top 100 employers in Northeast Ohio
Source: Crain’s Cleveland

4. Looking at it a different way – headcount vs
companies – the same ratio exists.
The top 100 employers in Northeast Ohio
employ 349,821 people. Only 20% of those
employees work downtown, while the rest
are in the suburbs.
Culture surveys show that an increasing
percentage of employees would prefer to
work downtown. Employees are drawn to the
amenities and urban activity. This growing
preference by employees will increasingly
weigh on companies’ future location
decisions.
Downtown vs. suburban headquarters
Work
downtown
20%
Work in the
suburbs
80%
Employees in Northeast Ohio
Source: Crain’s Cleveland

5. Largest employers with HQs outside of downtown
Company Local headquarters Employees
Minute Men 3740 Carnegie Ave, Cleveland 39,402
Progressive Insurance 6300 Wilson Mills Rd, Mayfield 9,490
GMS 3296 Columbia Rd, Richfield 8,499
FirstEnergy 76 S Main St, Akron 44308 5,085
Signet Jewelers 375 Ghent Rd, Akron 44333 3,292
Goodyear 200 Innovation Way, Akron 3,000
Howard Hanna 6000 Parkland Blvd, Mayfield 2,650
Nestle 30003 Bainbridge Rd, Solon 2,300
Lubrizol 29400 Lakeland Blvd, Wickliffe 2,300
TimkenSteel 1835 Dueber Ave SW, Canton 2,262
Parker Hannifin 6035 Parkland Blvd, Cleveland 1,990
FirstMerit III Cascade Plz, Akron 1,982
Avery Dennison 8080 Norton Pkwy, Mentor 1,886
Rockwell Automation 1 Allen-Bradley Dr, Mayfield 1,812
Eaton 1000 Eaton Blvd, Cleveland 1,771
Company Local headquarters Employees
J.M. Smucker One Strawberry Ln, Orrville 1,700
Hyland 28500 Clemens Rd, Westlake 1,566
American Greetings One American Blvd, Westlake 1,564
Westfield Insurance One Park Cir, Westfield Center 1,522
Bridgestone 10 E Firestone Blvd, Akron 1,436
Scott Fetzer Company 28800 Clemens Rd, Westlake 1,358
Safeguard Properties 7887 Safeguard Cir, Valley View 1,251
Shearer's 100 Lincoln Way, Massillon 1,225
Philips 595 Miner Rd, Highland Heights 1,000
RPM 2628 Pearl Rd, Medina 976
BWX Technologies 24703 Euclid Ave, Cleveland 950
Newell Rubbermaid 3200 Gilchrist Rd, Mogadore 926
Third Federal 7007 Broadway Ave, Cleveland 864
Saint Gobain 31500 Solon Rd, Solon 804
Vitamix 8615 Usher Rd, Cleveland 736
Source: Crain’s Cleveland

6. Approximately 98,000 employees work in
downtown Cleveland. That number has
been steadily rising over the last five years
as Cleveland’s renaissance has taken
hold.
Despite these gains, downtown
employment remains below 2008 levels,
and taking a farther look back, downtown
Cleveland has yet to recover all of the jobs
that were lost during the 2001 recession.
Historical employment in downtown Cleveland
Downtown Cleveland employment
80,000
90,000
100,000
110,000
120,000
2002 2005 2008 2011 2014 2017
Source: Census Bureau

7. Only 34% of downtown residents work
downtown, while the other 66% of downtown
residents commute to the suburbs for work.
For those that commute to the suburbs for
work, the most common areas of
employment are University Circle, Rockside
Road and Chagrin Boulevard.
Downtown residents who work in the suburbs
Work
downtown
34%
Work in the
suburbs
66%
Where downtown residents work
Source: Census Bureau

8. Millennials make up nearly half of the
downtown population. This group is the
primary driver behind the residential boom
taking place downtown.
More Generation Z’ers are also living
downtown, thanks to the growing
popularity of Cleveland State and the
explosion of student housing around
campus.
And lastly, downtown is seeing an influx of
Baby Boomers, as these empty nesters
look to downsize and move closer to
cultural attractions and entertainment
options.
Downtown residents by age
Downtown residents by age
Generation Z (0-19)
Millennials (20-36)
Generation X (37-52)
Baby Boomers (53-71)
The Silent Generation (72+)
Generations (age in 2017)
13.5%
48.0%
21.4%
13.7%
Source: ESRI

9. Downtown Cleveland’s residential
population – currently at 15,000 – has
grown exponentially in recent years.
Downtown Cleveland has added 5,000
new residents since 2010, and it could add
another 5,000 residents by 2020 if the
current pipeline of residential projects are
completed.
Downtowns across the Midwest are
seeing population growth. This is a very
common trend. However, Cleveland’s
population growth has far outpaced its
peers in the Midwest. This growth has
propelled Cleveland to have the second
largest downtown population among its
peer group.
Cleveland’s population growth vs peer markets
* Sorted by downtown population
Market
Metro
population
2017
Downtown
population
2017 *
% of metro
population
living
downtown
Downtown
population
growth
(2010-2017)
Downtown
area
(square miles)
Minneapolis 3,551,036 24,835 0.7% 13.5% 2.0
Cleveland 2,071,101 15,000 0.7% 52.0% 1.9
Indianapolis 2,038,559 13,654 0.7% 19.8% 2.5
Charlotte 2,499,116 13,185 0.5% 15.4% 2.0
Milwaukee 1,574,825 9,831 0.6% 7.5% 1.2
St. Louis 2,848,573 9,560 0.3% 36.6% 1.5
Columbus 2,071,338 8,300 0.4% 38.5% 1.9
Baltimore 2,841,753 7,890 0.3% 9.2% 1.0
Nashville 1,890,745 7,529 0.4% 20.4% 1.9
Cincinnati 2,202,268 6,554 0.3% 13.7% 1.0
Pittsburgh 2,378,076 5,068 0.2% 39.7% 0.8
Detroit 4,329,087 4,931 0.1% 2.6% 1.1
Louisville 1,296,400 4,482 0.3% 9.9% 1.2
Grand Rapids 1,058,079 3,999 0.4% 13.6% 1.1
Averages 2,332,211 9,630 0.4% 20.9% 1.5
Cleveland's peer markets
Source: ESRI

10. Comparing the downtown figures for
Cleveland’s peer group against the figures
for the largest metros in the U.S. reveals
some interesting similarities:
• First, average population growth for both
groups is comparable – 18% for the
largest metros and 21% for the peer
group.
• Second, the percent of the metro
population living downtown is similar for
both groups – 0.5% for the largest
metros and 0.4% for the peer group.
• Third, the average downtown area for
both groups is comparable – 2.0 square
miles for the largest metros and 1.5
square miles for the peer group.
Midwest downtowns vs major markets
* New York was excluded as an outlier
Market
Metro
population
2017
Downtown
population
2017
% of metro
population
living
downtown
Downtown
population
growth
(2010-2017)
Downtown
area
(square miles)
New York 20,153,634 1,375,664 6.8% 5.0% 17.6
Los Angeles 13,310,447 54,427 0.4% 22.5% 4.7
Chicago 9,680,659 107,037 1.1% 10.0% 3.3
Dallas 7,233,323 8,296 0.1% 36.5% 1.6
Houston 6,772,470 15,635 0.2% 8.8% 1.8
Philadelphia 6,162,249 43,092 0.7% 8.6% 1.6
Washington DC 6,131,977 22,751 0.4% 11.3% 0.9
Miami 6,066,387 53,421 0.9% 57.2% 2.2
Atlanta 5,806,085 16,142 0.3% 10.9% 2.2
Boston 4,794,447 44,278 0.9% 9.4% 1.6
San Francisco 4,679,166 17,352 0.4% 23.5% 0.9
Phoenix 4,661,537 6,598 0.1% 20.7% 1.2
Detroit 4,329,087 4,931 0.1% 2.6% 1.1
Seattle 3,798,902 48,690 1.3% 20.6% 2.1
Minneapolis 3,551,036 24,835 0.7% 13.5% 2.0
Averages * 6,212,698 33,392 0.5% 18.3% 2.0
Largest U.S. metros
Source: ESRI

11. How much more residential development can
downtown Cleveland support? This is a tough
question to answer, but there are three data points
that suggest Cleveland can absorb most of the
3,000 units that are in the pipeline.
• First, downtown Cleveland has absorbed 2,500
apartment units since 2010 and occupancy
remains at 95%, suggesting there is continued
pent-up demand.
• Second, the primary cause for migration out of
downtown Cleveland is the lack of for-sale
housing. Additional for-sale housing could help
stem those losses and lead to in-migration.
• Third, Minneapolis, which is a comparably sized
Midwestern metro to Cleveland, has a population
of nearly 25,000.
Residential development - how much is too much?
0%
20%
40%
60%
80%
100%
3,000
3,750
4,500
5,250
6,000
6,750
7,500
2010 2011 2012 2013 2014 2015 2016 2017
Number of rental units Residential occupancy
Source: Downtown Cleveland Alliance

12. Have more questions about downtown Cleveland?
Contact:
Andrew Batson
Vice President, Research
+1 216 937 4374
andrew.batson@am.jll.com
Johnathan Miller
Research Analyst
+1 216 937 4381
johnathan.miller@am.jll.com
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