Construction permitting in Cleveland returned to trend in 2025, with nearly $1.5 billion in total permits issued. While 2024 was a banner year, with more than $2.8 billion in permits issued, it was buoyed by over $1.2 billion in permits pulled by the Cleveland Clinic’s Innovation Project, the effects of which will be felt throughout the market for year. Removing these projects leaves 2025 as slightly below 2023 and 2024, both of which saw closer to $1.6 billion in total permitting, but well in line with the trend. A deeper look into the numbers can tell us a few good things about the real estate market and a few things to be concerned about going into 2026.
Taken together, the data points to a market that is stabilizing, decentralizing, and entering a new phase of reinvestment decisions.
How We Analyzed Cleveland’s 2025 Building Permit Data
Cleveland publishes open source permit data. Permits are sorted into residential permits (1-4 Family Housing) or commercial permits. Our analysis aggregated permits to identify projects greater than $5 million and then proceeded to categorize them by use (Institutional and Private-Sector) and location (Downtown, University Circle, and Neighborhoods).
Good: Cleveland Construction Market Stabilizing After Pandemic Dip
Compared to Columbus and Cincinnati, Cleveland’s construction market dipped noticeably during the pandemic. Since 2023, the market has returned to the pre-2020 level. A three-year rolling average smooths out some of the vagaries of the construction market and shows a clear trend of stabilization and growth in Cleveland.
Cleveland’s trend line falls between the more consistent growth in Columbus and the nearly flat trend in Cincinnati. With the Cleveland Clinic’s investment as the primary driver, the challenge going forward will be to identify other major investments that can be made in the Cleveland market.
Bad: Money Doesn’t Go as Far as It Used To
While a return to pre-pandemic permits is a good step, it is only so meaningful. While estimates vary from source to source, all observers agree that costs in the construction sector have increased substantially over the past decade. Higher interest rates, tariffs, and labor market constraints have all pushed the price of construction higher on a dollars-per-square-foot basis, perhaps 50% or more greater today than in 2016. As such, some of the return to permitting value is the operation of inflation – while dollar spend is the same, the market is getting fewer units, fewer jobs, and fewer projects.
Good: More Investment in Cleveland Neighborhoods
More projects are taking place in the neighborhoods of Cleveland outside of Downtown and University Circle, over $500 million in major project investment. In addition to existing investment areas like Ohio City, large projects went forward in Hough, Cuddell, Clark Metro, and St. Clair Superior in 2025. This is a positive reflection of both a growing real estate market opportunity – supported by a robust local economic development incentives, targeted State resources, and critical Federal programs – and success radiating from Downtown and University Circle.
That dynamic is playing out in real time across Cleveland’s neighborhoods. Over the past year, KJK advised on the redevelopment of a historic property along Superior Avenue, where the feasibility of the project depended on aligning historic rehabilitation goals with layered federal, state, and local incentives. Rising construction costs and capital market uncertainty required early coordination among public partners and careful sequencing of approvals. By structuring the incentives alongside the financing strategy from the outset, the project was able to move forward and contribute to the broader revitalization of its surrounding neighborhood.
Bad: Downtown Cleveland Development Softens
Investment in Downtown softened in 2025. On the plus side, the largest project in Cleveland was again Downtown, the new Cleveland Clinic Global Peak Performance Center. However, there was only one large private-sector permit in 2025, the remainder were all government and non-profit driven investments: Progressive Field, Port of Cleveland, Diocese of Cleveland, Rocket Arena.
Downtown is at a critical point. With Sherwin-Williams headquarters now complete, cranes are missing from the Downtown skyline. At the same time, Bedrock has begun its development along the Riverfront with the Peak Performance Center and the resolution of the Browns’ future means development on the Lakefront has some definition and timeline. Many of the developments of the 2010s are reaching the point where they will need a refresh. New builds like the Flats East Bank, the Lumen, and the Beacon are all past or nearing 10 years old, as are many of the office conversions. The Tower at Erieview should see work begin in 2026.
Against this backdrop, Downtown reinvestment decisions are also becoming more nuanced. In 2025, KJK worked with stakeholders on the planning and repositioning of a major Downtown office asset as ownership evaluated the next phase of its lifecycle. Rather than ground-up development, the focus was on reinvestment, adaptive reuse, and aligning capital improvements with evolving demand for Downtown space. These types of projects underscore the importance of long-term planning and incentive strategy as Downtown assets compete for tenants and capital in a changing market.
The Downtown office market has similarly seen reinvestment in offices dry up at scale. Suburban offices have seen continued investment and new development – Downtown properties must reinvest to compete. While a new trophy office building may not be in the cards, investment in maintaining Class A standards is a must.
Wild Card: Brown’s Huntington Bank Field and Future Cleveland Development
The new Huntington Bank Field project will have a massive impact on the Cleveland construction market, even if it will not show up in the Cleveland data. Investments in the three downtown stadiums have been a consistent source of construction permits. The stadium itself will be a $2 billion-plus project, with significant ancillary investment. This will impact the construction and real estate market in interesting ways, creating both stress and opportunities, over the next three to five years. Any snapshot of Cleveland’s real estate and construction sector going forward will have to factor for this project.
The Bottom Line:
- Neighborhoods Are Driving Growth
Over $500M in major projects landed outside Downtown and University Circle in 2025. If you’re planning residential or mixed-use development, neighborhoods like Hough, Clark Metro, and St. Clair-Superior are emerging as prime opportunities—especially when paired with layered incentives. - Downtown Needs a Refresh
With Sherwin-Williams headquarters complete and cranes disappearing from the skyline, Downtown is at a crossroads. Developers who act now to reposition Class-A assets or explore adaptive reuse will lead the next wave. Creative financing and public-private partnerships will be essential. - Cost Pressures Require Smarter Deals
Construction costs have surged since 2016, and interest rates remain a challenge, but there are signs that things are softening. Successful projects will depend on aggressive pursuit of state and local incentives, tax credits, and innovative capital structures. - Mega-Projects Will Reshape the Market
The Huntington Bank Field development and related infrastructure will create ripple effects across Cleveland’s real estate landscape. Positioning your project to benefit from these changes—rather than compete—will be key.
Why Partner with KJK?
Understanding the data is one thing. Positioning a project to succeed in this market is another. KJK’s Economic Development team doesn’t just understand the market—we help you win in it. Our services include:
- Incentive Strategy & Execution: From tax abatements to competitive state grants, we know how to maximize available programs.
- Public-Private Partnership Expertise: We align stakeholders and unlock funding for complex projects.
- Integrated Legal & Financial Guidance: Navigate compliance while optimizing deal structure.
- Market Positioning: We advise on timing, location, and trends so your project is set up for success.
Ready to move your project forward? Let’s talk about how to make it happen.
Thinking about a real estate development project in Cleveland? KJK’s Economic Development & Incentives Team is here to help position projects for development now and in the future. Reach out to our team to help position a project for investment, attract state and local incentives for development, or help your community approach its investment decisions. Our team can provide legal, financial, and project management expertise to move projects forward.
This analysis reflects KJK’s ongoing work advising developers, institutions, and public-sector partners on complex real estate and economic development projects across Northeast Ohio. To discuss further, contact KJK Partner and Director of Economic Development & Incentives, David Ebersole (DME@kjk.com; 216.736.7235).