That would put PSF’s asking price for the 602,000-square-foot building at $159 million. The 396-foot-tall skyscraper has 318 apartments. REJournals reported in February that PSF was seeking about $500,000 per apartment for the property located at 1600 Euclid Ave. It was out of everyone’s range.Īccording to two sources, PSF couldn’t get offers at amounts anywhere close to what the organization wanted. And it wasn’t just out of your price range. The reason is that The Lumen’s owner, the Playhouse Square Foundation (PSF), is reportedly taking the 34-story apartment tower off the market. If you were gathering up spare change in the hopes of buying The Lumen, Cleveland’s tallest residential building, you’re probably out of luck. CLICK IMAGES TO ENLARGE THEM Encore project also not in the program Its owner, the Playhouse Square Foundation, put the building up for sale but reportedly has taken it off the market (JLL). The Fidelity Hotel is currently under construction while a W Hotel is planned at the Tower at Erieview.The Lumen, downtown Cleveland’s tallest residential building, was 90 percent leased just one year after it opened for occupancy in July 2020, right in the middle of the COVID-19 pandemic. These include The Kimpton, The Drury and The 9. Examples include The Beacon, The Lumen and The City Club Apartments.ĭowntown Cleveland has also seen five office-to-hotel conversions completed since 2007. Most of these units have been absorbed, though JLL reports that overall apartment occupancy has fallen from 97% in 2007 to 91% in 2022.Īt the same time, developers have been adding new-construction multifamily buildings in downtown Detroit for the first time in decades. Overall, more than 3,934 apartment units have been delivered in downtown Cleveland since 2007. JLL says that more than 7.8 million square feet of office space has been converted to residential use since 2007, a figure that accounts for 89% of all conversion activity. What happens to converted office space? In Cleveland, according to JLL, most of it has been turned into apartments. This map, provided by JLL, shows where office conversions and demolitions have taken place throughout downtown Cleveland. According to JLL, the conversion and demolition of more than 9.7 million square feet of office space is equal to nearly seven Key Towers. JLL reported that 65% of the office removed from the downtown Cleveland market since 2007 has been Class-C space, while 35% has been Class-B.įor a nice visual, picture Cleveland’s iconic Key Tower, the tallest building in Ohio. These conversions have resulted in a 40% reduction of inventory in Cleveland’s downtown office market. The pandemic, though, gave it a push.Īccording to JLL, more than 9.7 million square feet of office space has been converted or demolished in downtown Cleveland since 2007, with 90% redeveloped and just 10% demolished. In Cleveland, at least, this trend started long before the pandemic, according to the latest research from JLL. Cities and developers are now working to turn these unloved offices into residential space, one more way to address the shortage of multifamily housing that most cities face. Across the Midwest, office users are seeking out higher-quality space, leaving older buildings largely empty. This trend isn’t limited to Cleveland, either. And as more users flock to Class-A office space, developers are increasingly targeting Cleveland’s outdated Class-B and Class-C space for conversions, turning many of them into apartments. A flight to quality: Since the start of the COVID-19 pandemic, this has been the biggest trend hitting Cleveland’s office market.
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