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Area. ON and Neiehborhood Analysis. Continued Unlike overall market trends, vacancy in the Downtown Cleveland submarket is stabilizing after significant fluctuations since the onset of the pandemic. According to Costar, net absorption outpaced deliveries in the first three quarters of 2023, pushing vacancy down more than 1% since late 2022. Vacancy in the submarket is still well above the overall market, however, with vacancy in Downtown Cleveland at 13.0%compared to the market average of 8.8%. Vacancy will likely remain above the market level through the forecast as an increase in construction starts will result in another wave of deliveries hitting the market in 2025. Although construction activity is at a multi-year low in Downtown Cleveland, around 1,300 units are underway in Downtown, representing 8.7% of existing inventory compared to the market average of just 2.1 %. There have been six newer hotels developed in downtown Cleveland in the past decade. In 2014, there were 4,000 hotel rooms downtown with 900 additional rooms opened before the Republican National Convention in 2016, increasing Downtown's total number of hotel rooms to more than 4,800. New hotels opened in 2016 include the 600 room Hilton lintel, the Kimpton Schofield and Drury Plaza Hotels. Hotels in the planning stages include a 175 room boutique hotel new the Rock and Roll I -hall of Fame and a 279 room hotel in the former Huntington Building. There were 4,530 total hotel rooms in 19 hotels with an average RevPAR of $101.44 before the pandemic, by the fourth quarter of 2023 occupancy was up from about 25% in 2020 to 74% with an ADR of $182 and a RevPAR of $107.82. The industry expects these statistics to keep improving. The $80 million Renaissance Hotel renovation rebranded and reopened as I lotel Cleveland in 2024. Sherwin Williams has announced that their headquarters will remain in Cleveland, bring approximately 2,500 newjobs to the downtown arca. The Cleveland Clinic is a major employer in the area and there is some spin off economic development as a result of the clinic and partnerships with Case Western Reserve University and University I lospitals. The Medical Mart, Convention Center and a new Casino were all developed in the past decade. This combined with the successful East 4th Street entertainment district has brought new residents to downtown in the past decade. New development at Playhouse Square and East 41h Street have benefitted from the Health Line as well. The Midtown Tech Park, on Euclid Avenue, is a recent spec building which is home to JumpStnrl, Inc., a venture capital firm and now Cleveland Heart Lab. The opening of the Opportunity Corridor has brought new development to the Cedar and East 105th area including Innovation Square. Downtown Cleveland has made the shift from an industrial city to a thriving economy based on the healthcare industry, advanced manufacturing and biotech companies. Downtown Cleveland has made the shift from an industrial city to a thriving economy based on the healthcare industry, advanced manufacturing and biotech companies. The outlook for the city is good. P. RRAMAN & CO., INC. - Real fiat le APpreis its & Cbnsulling www. cpbco.utm