Cleveland's total non-farm employment is approximately 1 million payrolls, with a year-over-year job growth of 1.4% and a decrease in unemployment to 5.7%. Industrial sectors saw a slight contraction, particularly in trade, transportation, and utilities, losing 2,100 jobs. Positive trends in industrial real estate are noted, with increasing demand for modern warehouse space and steady rent growth, while several local businesses are expanding or refining their operations.

1. Sources: JLL Research, Bureau of Labor Statistics
Job growth/loss by sector (12-month change)
Cleveland
-2,100
-1,600
100
700
1,000
1,000
1,200
1,400
3,500
9,100
-4,000 0 4,000 8,000 12,000
Trade, Transportation & Utilities
Mining, Logging & Construction
Information
Government
Manufacturing
Financial Activities
Other Services
Professional & Business Services
Educational & Health Services
Leisure & Hospitality
Number of Jobs
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 2002 2004 2006 2008 2010 2012 2014
Peak: 1,080,614 jobs
2.2%
unemployment rate
total jobs
Industrial employment update
Metro Cleveland . May 2015
5.7%Cleveland unemployment
1.4%Cleveland 12-month job growth
5.4%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 14,300 jobs or 1.4 percent.
Meanwhile, unemployment decreased 100 basis points year-over-
year to 5.7 percent.
• Industrial employment sectors contracted slightly over the last year,
recording an annualized net loss of 1,500 jobs across the metro.
The largest job losses occurred in the trade, transportation and
utilities sector, where total employment declined by 2,100 jobs
year-over-year.
• Total U.S. nonfarm employment increased by 223,000 jobs in April,
a healthy uptick after a disappointing March where job gains totaled
just 85,000. The strong April results will help lower concerns among
economists and Wall Street of a hiring slowdown.
• U.S. unemployment decreased 10 basis points to 5.4 percent, its
lowest mark since May 2008. Wages also continued to trend in the
right direction in April, increasing 2.2 percent year-over-year.
Due in part to the effects of manufacturers’ rebuilding inventories, along with
an upward trend in consumer spending, Cleveland’s industrial leasing market
has seen improvement. The region has recorded positive absorption of
industrial space for three consecutive years. The demand picture for the next
few years has also improved, thanks to a growing local economy which
recently surpassed pre-recession manufacturing exports levels.
Demand for modern warehouse space is forecasted to increase distinctly
over the coming year as employers look to add capacity and efficiencies.
Many developers are still wary of speculative construction, so look for most of
this new stock to come online as build-to-suit projects. The average asking
rent in Cleveland has been steadily rising over the last two years and while
further gains are expected over the coming year, Cleveland will remain one of
the most affordable industrial markets in the United States.
Industrial real estate implications
Industrial employment trends (12-month change)
Cleveland
-15.0
-5.0
5.0
15.0
2011
2012
2013
2014
2015
Mining, Logging & Construction Trade,Transportation & Utilities Manufacturing Other Services

2. JLL Americas Research • Cleveland Industrial Employment Update 2
March 2013 March 2014 March 2015
Total Non-farm
Employment
1,004,800
1.0%
1,012,100
0.7%
1,027,400
1.5%
Unemployment Rate 7.6% 7.6% 6.4%
Cleveland Supersectors March 2013 March 2014 March 2015
Mining, Logging & Construction 30,400 0.0% 31,500 3.6% 29,900 -5.1%
Manufacturing 123,900 0.7% 123,600 -0.2% 124,600 0.8%
Trade, Transportation, & Utilities 177,800 0.0% 178,800 0.6% 176,700 -1.2%
Information 15,000 -2.0% 14,600 -2.7% 14,700 0.7%
Financial Activities 62,400 0.8% 64,500 3.4% 65,500 1.6%
Professional & Business Services 141,300 0.9% 144,300 2.1% 145,700 1.0%
Educational & Health Services 195,900 1.8% 195,600 -0.2% 199,100 1.8%
Leisure & Hospitality 90,300 5.7% 91,900 1.8% 101,000 9.9%
Other Services 39,200 -2.2% 39,300 0.3% 40,500 3.1%
Government 133,700 -2.0% 133,500 -0.1% 134,200 0.5%
News on the street
Cleveland businesses expanding, contracting, etc.
Employment statistics
Cleveland
Industry employment stratification
Cleveland
Educational &
Health Services,
199,100, 19%
Trade, Transportation
& Utilities,
176,700, 17%
Professional &
Business Services,
145,700, 14%
Government,
134,200, 13%
Manufacturing,
124,600 , 12%
Leisure & Hospitality,
101,000, 10%
Financial Activities,
65,500 , 6%
Other Services,
40,500, 4%
Mining, Logging &
Construction,
28,500, 3% Information,
14,600, 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
Cody Brooks
Research Analyst
Great Lakes Region
tel +1 513 297 2509
Cody.Brooks@am.jll.com
312 Walnut St,
Suite 3030
Cincinnati, OH 45202
www.jll.com/cincinnati
© 2015 Jones Lang LaSalle IP, Inc. All rights reserved.
All information contained herein is from sources deemed
reliable; however, no representation or warranty is made
to the accuracy thereof.
Chesapeake Energy Ι Oil & Gas Exploration & Production: Scale Down
Low prices for natural gas and related liquids are forcing Chesapeake Energy to cut into Ohio operations. The Oklahoma-based energy giant recently said that it
intends to scale back its Utica Shale drilling in the coming months as profits drop and production continues to climb. Chesapeake will lower the number of drilling rigs
in Ohio from five to two by the middle of the third quarter and will reduce the number of Ohio crews that hydraulically fracture from four to 2.5 for the rest of 2015.
Cleveland-Cuyahoga County Port Authority Ι Logistics: Expanding
The Port Authority and Spliethoff Transport BV recently negotiated a new agreement for the operation of the Cleveland-Europe Express with the addition of a second
monthly roundtrip sailing. The added service is attractive to shippers, particularly those that bring containers into the U.S. and need more frequent service. In its first
year, the Cleveland-Europe Express carried more heavy machinery and other bulk cargo than containers, which are used for consumer product
Core-Tech Ι Ceramic Fabrication: Expanding
Core-Tech, a ceramic core maker, is adding 17,000 square feet to its footprint in Mentor. Core-Tech makes precision ceramic cores for investment casting
processes in a variety of industries. Core-Tech recently bought an adjacent building to its current operations in Mentor and plans to invest more than $1.2 million in
equipment and upgrades to the facility. The company plans to hire an additional 10 people when operation begins at the new plant.
Invacare Ι Medical Equipment & Supplies Manufacturing: Capital Markets
Invacare (NYSE: IVC) of Elyria said it has raised $23 million in a sale/leaseback transaction that includes the company's headquarters. The maker of home and
long-term care medical products announced in a news release that the transaction involves five properties in Ohio and Florida. Net proceeds from the transaction
will be used “to reduce debt on the company’s revolving asset-based credit facility,” Invacare said in the release.
Nordson Food Distribution Center Ι Food Bank: Opening
Second Harvest Food Bank of North Central Ohio’s $5 million capital campaign has come to a close and the product of that labor, a new 40,000-square-foot
distribution center in Lorain, is expected to open early next month. The Nordson Corporation Foundation pledged a total of $2.1 million of the $5 million needed for
the project. The new Nordson Food Distribution Center sits on 11 acres on Baumhart Road, about 1.5 miles north of the food bank’s current facility.
W Diamond Group Ι Apparel Manufacturing: Acquisitions
The Hugo Boss men's clothing factory, which was scheduled to close in April, will remain open under new ownership. The Tiedeman Road facility is being sold to
Chicago-based W Diamond Group. The company, which has a commitment to domestic manufacturing, makes Hart Schaffner Marx suits in Chicago. About 160
employees work at the facility. All employees will be retained as part of the sale, which is scheduled to be completed by the end of April.