National Investors Will Look to Secondary Markets in 2018

The Key Center is the most recognizable office property in the Cleveland market, and was recently sold for $267.5 million.

CLEVELAND—Office sales have increased steadily in the Cleveland metro area since 2010 and, driven by out-of-state investors, is now approaching prerecession levels, according to a new study by JLL. In just the last two years office investment sales here have totaled more than $550 million. And the firm believes these buyers will keep sending their money to Cleveland in 2018.

“Cap rates have steadily compressed in the principal markets, and prices have really ramped up,” Andrew Batson, Cleveland-based vice president and director of research, tells GlobeSt.com. “Generally, investors are now looking inward and chasing yields.”