Jobs growth among office-using employment sectors in Cleveland has been trending up in recent months, recording an annualized net gain of 3,800 jobs across the metro. Employment gains were led by the professional and business services sector, which added 4,800 jobs year-over-year.

1. Office real estate implications
Sources: JLL Research, Bureau of Labor Statistics
Job growth/loss by sector (12-month change)
Cleveland
-700
-700
-600
-400
-300
0
800
4,800
4,900
5,900
-2,000 0 2,000 4,000 6,000
Educational & Health Services
Government
Trade, Transportation & Utilities
Other Services
Information
Financial Activities
Manufacturing
Professional & Business Services
Leisure & Hospitality
Mining, Logging & Construction
Number of Jobs
Rightsizing is top of mind for many of Cleveland’s office tenants. A move
towards open floor plans with numerous breakout rooms and collaboration
spaces is also a prevailing trend. As such, the market is seeing more
relocations than renewals. And landlords are providing sizable improvement
allowances for tenants to outfit their new space. Built-to-suit activity is also on
the rise. Companies such as Eaton, American Greetings and Omnova have all
gone this route. In this case, occupiers are able to start with a blank canvas
and create an environment tailored to their individual corporate culture.
Tenants are demanding newer office product. Many are finding it difficult to
outfit aging offices with modern technology infrastructure and many older
offices do not sync with the sustainability initiatives of today’s corporates.
While tenants will pay a premium for new product, the benefits of large floor
plates, energy efficient offices and modern technology infrastructure outweigh
the rent premium in the eyes of most corporate occupiers.
Total jobs vs. unemployment rate
Cleveland
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
850,000
900,000
950,000
1,000,000
1,050,000
1,100,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Peak: 1,083,529 jobs
3.3%
unemployment rate
total jobs
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
2010
2011
2012
2013
2014
Financial Activities Professional & Business Services Information Government
Office employment trends (12-month change)
Cleveland
Office employment update
Metro Cleveland . January 2015
5.4%Cleveland unemployment
1.3%Cleveland 12-month job growth
5.6%U.S. unemployment
2.2%U.S. 12-month job growth
• According to the most recent estimates from the BLS, total non-farm
employment in Cleveland stood at ~1.0 million payrolls, representing
an annualized increase of 13,700 jobs or 1.3 percent. Meanwhile,
unemployment decreased 1.8 percentage points year-over-year to
5.4 percent.
• Jobs growth among office-using employment sectors in Cleveland has
been trending up in recent months, recording an annualized net gain of
3,800 jobs across the metro. Employment gains were led by the
professional and business services sector, which added 4,800 jobs
year-over-year.
• Total U.S. nonfarm employment increased by 252,000 jobs in December
and upward revisions were made to prior months totaling 50,000 jobs. Over
2.9 million jobs were added over 2014, making it America's best year of job
growth since 1999.
• Meanwhile, U.S. unemployment decreased 20 basis points to 5.6 percent,
its lowest rate in six years. Leading economists are now forecasting
unemployment to shrink to 5.2 percent, approximately “full employment,” by
the end of 2015.

2. JLL Americas Research • Cleveland Office Employment Update 2
November 2012 November 2013 November 2014
Total Non-farm
Employment
1,034,400
1.8%
1,035,700
0.1%
1,049,400
1.3%
Unemployment Rate 6.9% 7.2% 5.4%
Cleveland Supersectors November 2012 November 2013 November 2014
Mining, Logging & Construction 35,200 -1.4% 35,900 2.0% 41,800 16.4%
Manufacturing 124,300 1.3% 124,700 0.3% 125,500 0.6%
Trade, Transportation, & Utilities 185,400 1.9% 186,400 0.5% 185,800 -0.3%
Information 15,300 -1.3% 15,100 -1.3% 14,800 -2.0%
Financial Activities 63,000 1.0% 62,400 -1.0% 62,400 0.0%
Professional & Business Services 147,000 2.8% 147,000 0.0% 151,800 3.3%
Educational & Health Services 197,700 3.2% 198,800 0.6% 198,100 -0.4%
Leisure & Hospitality 91,700 5.2% 90,700 -1.1% 95,600 5.4%
Other Services 39,700 -1.5% 40,500 2.0% 40,100 -1.0%
Government 135,100 -0.4% 134,200 -0.7% 133,500 -0.5%
News on the street
Cleveland businesses expanding, contracting, etc.
Gas Natural Ι Natural Gas Distribution: Relocation
Gas Natural (NYSE: EGAS) recently relocated its headquarters from Mentor to downtown Cleveland. The natural gas distributor signed a 6,000-square-foot
sublease at One Cleveland Center. At the outset, Gas Natural will bring just 15 jobs downtown. But over the next few years, the company could add up to eight more
headquarters positions. The city has approved a job-creation grant of up to $36,500 for Gas Natural, which will receive the money over a three-year period.
Geis Companies Ι Commercial Real Estate: Development
The Geis Companies, developer of the Midtown Tech Park, is taking on another new development along Cleveland’s Health-Tech Corridor. Geis executives recently
unveiled plans to build a three-building, $51 million office and lab complex on the site of the former Ohio Knitting Mills building at East 55th Street and Euclid Avenue.
The project ultimately could bring 260 jobs and 320,000 square feet of new construction. The first phase totaling 80,000 square feet could be completed by 2016.
Hartland & Company Ι Financial Consultant: Acquisition
Hartland & Company, a Cleveland-based institutional and private wealth advisory firm, recently announced its acquisition of Portland, Maine-based independent
wealth adviser Plimsoll Mark Capital. The transaction was completed on December 31. Financial terms of the deal were not disclosed. Hartland advises about 70
institutions and about 250 private families and individuals on roughly $15 billion in combined assets.
K&D Group Ι Commercial Real Estate: Development
The Halle Building, a famous downtown Cleveland department store turned into an office building in the 1980s, is positioned to start its next transformation after the
K&D Group recently acquired it for $20 million. The seller of the 13-story, 400,000-square-foot building at 1228 Euclid Avenue was an affiliate of Forest City
Enterprises, which had been marketing the half-empty office building for more than a year. K&D plans to install about 240 multifamily units in the building in 2018.
Panther Premium Logistics Ι Logistics Services: Relocation
Panther Premium Logistics, a specialized freight carrier based in the Medina County community of Seville since 2004, has completed the move to its new corporate
headquarters and dispatch center in Sharon Township. The new facility, also in Medina County, has 50,000 square feet of office space and a 9,000-square-foot
service bay for applying decals and GPS units to trucks.
Summit Cleveland LP Ι Commercial Real Estate: Acquisition
Northeast Ohio's largest suburban office park changed hands recently in a $26.5 million transaction that brought new blood to the Cleveland commercial real estate
market. Summit Cleveland LP, Canadian investor group, bought Summit Office Park from Aegon, a lender that has owned the Independence properties since 2009.
The sale involved nearly 500,000 square feet of office space across four buildings in the Rockside Road submarket.
Employment statistics
Cleveland
Industry employment stratification
Cleveland
Educational &
Health Services,
198,100, 19%
Trade, Transportation
& Utilities,
185,800, 18%
Professional &
Business Services,
151,800, 14%
Government,
133,500, 13%
Manufacturing,
125,500 , 12%
Leisure & Hospitality,
95,600, 9%
Financial Activities,
62,400 , 6%
Mining, Logging &
Construction,
41,800, 4%
Other Services,
40,100, 4% Information,
14,800, 1%
Andrew Batson
Senior Research Analyst
Great Lakes Region
tel +1 216 937 4374
Andrew.Batson@am.jll.com
127 Public Square,
Suite 2410
Cleveland, OH 44114
www.jll.com/cleveland
Robert Kramp
Senior Vice President – Americas
Midwest & Great Lakes Research Director
tel +1 312 228 2470
Robert.Kramp@am.jll.com
200 East Randolph Street,
47th Floor
Chicago, IL 60601
www.us.joneslanglasalle.com/research
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