Store closings make the headlines. But the reality of the U.S. retail market today? It’s performing well, with retailers that maintain both online and brick-and-mortar presences drawing steady business. An example of this? Cleveland.
Cleveland’s retail real estate market is a strong one today, according to Marcus & Millichap’s third quarter Cleveland Retail Market Report.
According to Marcus & Millichap, strong employment gains and steady leasing activity are boosting the Cleveland-area retail sector.
“Despite pockets of store closures, the Cleveland retail market is holding firm,” said Grant Fitzgerald, vice president and regional manager with Marcus & Millichap, in a statement released with the company’s report.
The report highlights a retail sector buoyed by solid economic fundamentals. Through July 2025, Cleveland added more than 12,000 jobs, ranking eighth among major U.S. metropolitan areas for job growth.
And in even better news? Those gains have been broad-based, with job growth taking place in such key sectors as manufacturing, health care, office-using industries and retail trade.
Retail leasing on the rise in Cleveland
Retail leasing in Cleveland climbed nearly 20% through July, according to Marcus & Millichap’s report. That uptick in leasing has pushed single-tenant vacancy down to 4.1%, placing Cleveland among just five major U.S. markets to see such a significant decline.
The strongest performance has come in suburban corridors. Medina and Portage counties, two of the Cleveland area’s more affluent suburban markets, saw retail vacancy drop to about 3%.
More retail growth is on the way, too. Marcus & Millichap estimates that more than 1 million square feet of new move-ins will hit the Cleveland market during the second half of 2025, a sign that the market’s momentum may extend well into next year.
Rents climb as supply tightens
With leasing accelerating and vacancy shrinking, rent growth has surged. Cleveland now ranks first among major U.S. metropolitan areas in year-over-year single-tenant rent growth, with the average asking rent climbing to $13.33 per square foot for local retail properties as of June.
Investment activity rising, too
Marcus & Millichap reported rising interest among investors in retail properties located in both downtown Cleveland and its suburban submarkets. Net-leased assets built after 2000 are performing especially well, attracting buyers looking for stable cash flow and newer construction with limited maintenance costs.
Power centers, including those anchored by grocery stores, big-box retailers and entertainment venues, are also seeing strong investor activity.
An optimistic outlook
While some national retailers continue to right-size their footprints, Cleveland’s underlying fundamentals appear steady. The combination of strong employment, diversified economic growth and rising investor confidence positions the region as one of the Midwest’s more resilient retail markets heading into 2026.
Marcus & Millichap’s analysis suggests that the city’s retail landscape is benefitting from a “flight to quality” dynamic, too, in which both tenants and investors are searching for well-located, newer or renovated properties that can deliver long-term stability.
“The market’s fundamentals remain strong, with a healthy balance between demand and supply,” Fitzgerald said in a statement. “As employment growth continues and consumers remain active, we expect leasing momentum to carry through the end of the year.”
