An in-depth look at the Akron office market. Analysis includes leasing, sales, construction and employment.

1. Akron | Winter 2019
Office Outlook
An in-depth look at the Akron office market.
Analysis includes leasing, sales, construction
and employment.

2. © 2018 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.
-200,000
0
200,000
400,000
2014 2015 2016 2017 2018
Supply and demand (s.f.) Net absorption
Deliveries
Momentum builds at East End, developments
downtown promise of a true live-work-play district
23.5% 24.7%
22.6%
19.7%
16.6%
2014 2015 2016 2017 2018
Total vacancy
$10.00
$14.00
$18.00
$22.00
2014 2015 2016 2017 2018
Average asking rents ($/s.f.) Class A
Class B
Fundamentals Forecast
Inventory 8.4 m.s.f.▶
Total vacancy 16.6%▶
Speculative construction 42,000 s.f.▼
Average asking rent $17.97 p.s.f.▶
Average sales price $79 p.s.f.▲
Insight
Akron Office Outlook
Winter 2019
Akron’s office market saw an outbreak of activity in the second half of 2018
with some of the region’s largest employers completing real estate
transactions. Myers Industries, after briefly considering a move to downtown
Cleveland, decided to remain in Akron and pursue a sale-leaseback of its
133,404-square-foot headquarters. Before that, SummaCare left its long-time
home at 10 North Main for 65,000 square feet in the East End redevelopment.
Subsequently, Akron Public Schools purchased 10 North Main for $9.1 million
with plans to consolidate its administrative offices there. Lastly, Babcock and
Wilcox announced it will move its headquarters in the summer of 2019 to the
East End redevelopment, leasing as much as 175,000 square feet.
Things are also heating up in the region’s software industry thanks to several
of public-private initiatives. Cybersecurity firm Tuffin completed a relocation
and expansion into 13,500 square feet at 3700 Embassy Parkway in Fairlawn. A
second cyber security firm, Binary Defense Systems, purchased a 10,400-
square-foot building at 600 Alpha Parkway in Stow. And finally, in downtown
Akron, a major renovation is currently underway at Bounce, a 300,000-square-
foot innovation hub serving the entrepreneurial and innovation community.
Outlook
Office demand will continue to trend upward in 2019 as an improving
economy produces additional job growth. Overall though, absorption levels
will be somewhat muted as rightsizing remains a common theme among
corporate users. The development pipeline is limited, which should help
vacancy levels decline over the coming year. Further augmenting the decline
in vacancy will be the conversion of underperforming and functionally
obsolete office buildings downtown to residential and hotel use. Look for
interest in downtown office space to increase in the coming years as
investments in infrastructure and a number of mixed-use developments
create more of a live-work-play environment that millennials desire.
• Akron’s largest employers were on the move in 2018, shaking up the
office market and creating new opportunities for others.
• Vacancy is projected to decline modestly in 2019 while rents hold in their
current range. Limited new construction is planned across the metro.
• Look for interest downtown to accelerate as infrastructure investments
and mixed-use developments create a live-work-play environment.
Top trends

3. © 2018 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.
Akron Office Outlook
Winter 2019
Statistics
JLL tracks office buildings ≥10,000 square feet excluding government, medical and owner-occupied properties. Recently leased space with pending occupancy is considered occupied.
.
Class
Inventory
(s.f.)
Total
vacancy
(s.f.)
Total
vacancy
(%)
Average
asking rent
($ p.s.f.)
Downtown Totals 3,354,533 608,083 18.1% $16.50
Fairlawn Totals 1,750,376 204,018 11.7% $18.17
Green Totals 439,498 48,726 11.1% $18.97
Hudson/Stow Totals 626,876 91,847 14.7% $20.11
Richfield Totals 649,636 125,120 19.3% $19.91
Suburban Akron Totals 1,615,743 324,556 20.1% $19.09
Suburbs Totals 5,082,129 794,267 15.6% $19.10
Totals Totals 8,436,662 1,402,350 16.6% $17.97
Downtown A 1,535,164 157,829 10.3% $20.15
Fairlawn A 603,614 74,180 12.3% $18.80
Green A 0 0 0.0% $0.00
Hudson/Stow A 38,240 19,120 50.0% $24.00
Richfield A 460,346 106,465 23.1% $20.41
Suburban Akron A 513,091 168,447 32.8% $21.44
Suburbs A 1,615,291 368,212 22.8% $20.74
Totals A 3,150,455 526,041 16.7% $20.56
Downtown B 1,819,369 450,254 24.7% $15.22
Fairlawn B 1,146,762 129,838 11.3% $17.82
Green B 439,498 48,726 11.1% $18.97
Hudson/Stow B 588,636 72,727 12.4% $19.09
Richfield B 189,290 18,655 9.9% $17.11
Suburban Akron B 1,102,652 156,109 14.2% $16.55
Suburbs B 3,466,838 426,055 12.3% $17.67
Totals B 5,286,207 876,309 16.6% $16.41

4. © 2018 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.
Akron Office Outlook
Winter 2019
Construction
This map highlights a partial list of construction projects either planned, under construction, or recently completed.
1
2
3
2
Address: 4059 Kinross Lakes
Square feet: 115,500
Tenant: National Interstate
Owner: National Interstate
Construction type: Owner-user
Completion: Q2 2018
4
Address: 375 Ghent Road
Square feet: 86,000
Tenant(s): Signet Jewelers
Owner: Cedarwood
Construction type: Expansion
Completion: Q1 2018
1
Address: 3750 Timberlake
Square feet: 47,500
Tenant: GMS
Owner: GMS
Construction type: Owner-user
Completion: Q3 2018
4
3
Address: 3600 Embassy Parkway
Square feet: 42,600
Tenant(s): None
Owner: Dellagnese
Construction type: Spec
Completion: Q1 2019

5. © 2018 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.
Leasing
Akron Office Outlook
Winter 2019
This dashboard analyzes office leasing activity in the Akron market over a 12-month period ending November 30, 2018
Leasing activity by size
488,334
32
148,675
157,703
181,956
68,446
419,888
Growing Shrinking Stable
322,625
165,709
Notable leasing transactions
Submarket Size
Babcock & Wilcox Company 1144-1200 E Market St Suburban Akron
Signet Jewelers 375 Ghent Rd Fairlawn
Cisco Systems 4125 Highlander Pkwy Richfield
Ninth District Court 121 S Main St Akron CBD
ACRT 4500 Courthouse Blvd Hudson/Stow
Tufin 3700 Embassy Pkwy Fairlawn
Hopebridge 490 White Pond Dr Suburban Akron
CESO 175 Montrose W Ave Fairlawn
Communicare Health 388 S Main St Akron CBD
Summa Health 242 Portage Trail Suburban Akron
10,538 New Lease Stable
9,855 New Lease Stable
12,650 New Lease Stable
10,550 New Lease Growing
19,120 New Lease Stable
13,500 New Lease Growing
52,195 Renewal Shrinking
22,000 New Lease Stable
166,834 New Lease Stable
89,000 Expansion Growing
Leasing activity by transaction type
New lease
Renewal
Tenant Address Type Footprint
Tenant footprint Leasing activity by industry
9 2 21
Class C leasing (s.f.)
Urban leasing (s.f.)
Suburban leasing (s.f.)
12 months at a glance
Leasing activity (s.f.)
Number of transactions
Class A leasing (s.f.)
Class B leasing (s.f.)
53%
28%
15%
Scientific and technical
Professional and business services
Public and private institutions
Public and private institutions
Financial Services
Other
15 8 5 1 3
0
20,000
40,000
60,000
80,000
<5,000 5,000-9,999 10,000-19,999 20,000-49,999 ≥50,000
Total s.f. leased Number of leases#
Leasing activity by submarket (s.f.)
44%
27%
14%
11%
Suburban Akron
Fairlawn
Akron CBD
Richfield
Hudson/Stow
Leasing activity by industry(s.f.)

6. © 2018 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.
20%
17%
15%13%
11%
10%
Trade, transportation and Utilities
Educational and Health Services
Professional and Business Services
Government
Manufacturing
Leisure and Hospitality
Financial Activities
Mining, Logging and construction
Other Services
Information
3.7%U.S. unemployment
1.7%U.S. 12-month job growth
4.4%Akron unemployment
1.7%Akron 12-month job growth
4.6%Ohio unemployment
1.9%Ohio 12-month job growth
-1.0%
-0.3%
0.4%
1.1%
1.8%
2.5%
3.2%
2014 2015 2016 2017 2018
Akron U.S.
3,000
2,500
1,700
600
300
200
100
0
-800
-1,500
-2,900 -1,900 -900 100 1,100 2,100 3,100 4,100
Educational & Health Services
Trade, Transportation & Utilities
Leisure & Hospitality
Manufacturing
Mining and Logging
Financial Activities
Other Services
Information
Professional & Business Services
Federal Government
-3.0
-1.0
1.0
3.0
5.0
2014 2015 2016 2017 2018
Professional & Business Services Information
Government Financial Activities
0%
4%
8%
12%
295
315
335
355
2014 2015 2016 2017 2018
Employment (000s) Unemployment
Employment
Akron Office Outlook
Winter 2019
*Represents 12-month change in employment. All charts represent the latest economic data available from the Bureau of Labor Statistics as of November 2018
Job growth by sector*Historical employment
Job growth*
Employment by industry Office employment*

7. © 2018 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.
Andrew Batson
Vice President, Research
+1 216 937 4374
andrew.batson@am.jll.com
About JLL
JLL (NYSE: JLL) is a leading professional services firm that
specializes in real estate and investment management. A
Fortune 500 company, JLL helps real estate owners,
occupiers and investors achieve their business ambitions.
In 2017, JLL had revenue of $7.9 billion and fee revenue of
$6.7 billion; managed 4.6 billion square feet; and
completed investment sales, acquisitions and finance
transactions of approximately $170 billion. At the end of
2017, JLL had nearly 300 corporate offices, operations in
over 80 countries and a global workforce of 82,000. As of
December 31, 2017, LaSalle had $58.1 billion of real estate
assets under management. JLL is the brand name, and a
registered trademark, of Jones Lang LaSalle Incorporated.
For further information, visit www.jll.com.
About JLL Research
JLL’s research team delivers intelligence, analysis and
insight through market-leading reports and services that
illuminate today’s commercial real estate dynamics and
identify tomorrow’s challenges and opportunities. Our
more than 400 global research professionals track and
analyze economic and property trends and forecast
future conditions in over 60 countries, producing
unrivalled local and global perspectives. Our research and
expertise, fueled by real-time information and innovative
thinking around the world, creates a competitive
advantage for our clients and drives successful strategies
and optimal real estate decisions.
Contact
Johnathan Miller
Research Associate
+1 216 937 4381
johnathan.miller@am.jll.com