Northeast Ohio Properties, January 2026

INSIDE : AIA Cleveland Design Awards • Encore • 2025/2026 Financial Review + Forecast

January 2026 | vol. 80, issue 1

Intentional Approach

Site constraints help shape scale, massing + experience at Skyline on Stokes

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January 2026, Volume 80, Number 1

FEATURES info@propertiesmag.com www.propertiesmag.com

EDITOR-IN-CHIEF Mark Watt mwatt@propertiesmag.com 216.251.2655

CONTRIBUTING WRITERS Doug Bardwell, Scott Esterly, Dan Holland, Christopher Johnston, Alec Pacella MEDIA CONSULTANTS Matt Lehnert mlehnert@propertiesmag.com 216.251.6753 Larry Overbey loverbey@propertiesmag.com 216.251.6649 OWNER Real Estate Publishing Corporation Jeff Johnson, CEO jeff.johnson@rejournals.com Cover photo: Skyline on Stokes,

by Doug Bardwell

Photo by Scott Esterly

OFFICE MANAGER Lisa Larissey llarissey@propertiesmag.com 440.429.6153

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Honoring Design Achievements

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Rural Roots, Modern Retail

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Intentional Approach

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Bridging the Talent Gap

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Raising the Curtain at Encore

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Special Section: 2025/2026 Financial Review + Forecast

AIA Cleveland recognizes top projects with annual awards program Hartville Hardware & Lumber reinvests in Middlefield with 175,000-square-foot store Site constraints help shape scale, massing + experience at Skyline on Stokes ACE Day connects future workforce with college/career opportunities New cocktail bar brings Art Deco-inspired gathering space to Cleveland’s Playhouse Square 40 Right-Sizing Retail: Northeast Ohio’s market adapts to consumer behavior + e-commerce pressure 42 Financial Strategies: Salty or Sweet?

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46 Legal Perspectives: Ohio Property Tax Legislation Updates

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44 NAIOP News: CRE Challenges + Opportunities in Northeast Ohio

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Properties (ISSN 033-1287) is published monthly for architects, engineers, building owners and managers, general contractors, home builders, mortgage bankers, savings and loans, real estate agents, appraisers, servicers and suppliers in Northern Ohio by Properties, Inc., 8305 Chesterfield Ave., Parma, OH 44129-1813. Copyright © 2026 by Properties, Inc. All rights reserved. Reproduction or use, without written permission, of editorial or pictorial content is strictly prohibited. Periodicals postage paid in Cleveland, Ohio and additional offices. Subscription rates: one year $30, single copy $9, back issues $12 when available. Postmaster: send change of address notices to Properties, 8305 Chesterfield Ave., Parma, OH 44129-1813.

50 ACAR Corner: NAR Expects Home Sales to Jump 14% Nationally 52 Don’t Let Your Legacy Go Off-Market: High-stakes planning for real estate leaders 56 National Construction Outlook: Dodge forecasts uneven construction performance in 2026

DEPARTMENTS 6 34 42 44 46 50 56

PROPERTIES PEOPLE BILLBOARD FINANCIAL STRATEGIES NAIOP NEWS LEGAL PERSPECTIVES ACAR CORNER CONSTRUCTION PROGRESS REPORT www.propertiesmag.com 5

PROPERTIES PEOPLE Highlighting notable industry events

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AIA Cleveland Design Awards

Photos courtesy of AIA Akron

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The Cleveland chapter of American Institute of Architects (AIA Cleveland) recently held its annual Design Awards celebration, with more than 350 people in attendance at the Hotel Cleveland.

The event celebrated exceptional achievements in design with 16 professional projects and nine student projects honored with awards. (See full story, pg. 8.)

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Photos by John Biliboaca Photography

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1 Adam Yaracs (IKM Architecture) and Dave Robar (Vocon) 2 Emily Williams, Ben Crabtree, Travis Clarke and Aaron Hill (Bialosky) 3 Jen Minotas (+Detail), Jonathan Lusin (IKM Architecture) and Grace Jones (+Detail) 4 Terrance Wilson, Noah Kamnikar and Lexi Kirkbride (Ohio Desk) 5 Michael Christoff (Vocon) and Jonathan Lusin (IKM Architecture) 6 Student volunteers Alison Kollar and Emma Hoffman (Kent State CAED) 7 Jonathan Lusin (IKM Architecture)

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AIA Akron ‘Swipe Right on Connection’ Social AIA Akron hosted “Swipe Right on Connection: Networking in a New Era,” at the MAPS Air Museum in Green recently. The networking and educational social brought together architects, engineers, contractors and emerging professionals for an evening of connection and conversation. Lindsay Andrews (Gilbane Building Company) led a talk on building authentic networks in today’s fast-moving professional landscape, followed by open networking among the museum’s aircraft exhibits.

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Northeast Ohio President-Elect Brad Butler BOMA Business Meeting 1 BOMA (KeyBank) and Life Member Rich Estremera (KeyBank, Ret.)

BOMA Northeast Ohio celebrated leadership and progress at its Annual Business Meeting recently, honoring 2025 Partners, awarding new Life Members and recognizing outgoing leadership. The event, held at Sausalito’s Grand Ballroom in Garfield Heights, welcomed the 2026 president and board of directors. (See full story, pg. 35.)

2 BOMA Northeast Ohio Executive VP Sondra Turek and 2025 BOMA Star Nick Riley (Millennia) 3 Diana Lis (Lee Cleveland Property Management) and Life Member Rob Castle (ABM Industries, Ret.) 4 BOMA Northeast Ohio President Laban Zurowski (Progressive Companies) 5 Sondra Turek (BOMA Northeast Ohio) and 2025 BOMA Star Judy Nowak (KONE) 6 Thom Wojtkun (GOJO Industries), Ben Szymczak (Davey Tree), Gurdeep Rihal (Progressive Companies), Austin Foote (Progressive Companies) and Ryan Reynolds (Legacy Maintenance Services) Properties | January 2026

Photos courtesy of BOMA Northeast Ohio

1 Kristen Mara (+Detail), Eric Wright (Wright Engineering) and Matthew Glassner (Hasenstab Architects Inc.) 2 Ahmad Thomas (TC Architects) and Sydney Garske (WL Tucker Supply) 3 Presenter Lindsay Andrews (Gilbane Building Company)

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Honoring Design Achievements

AIA Cleveland recognizes top projects with annual awards program Provided by AIA Cleveland

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ARCHITECTURE Honor Award

Cleveland Public Library Glenville Branch

(11900 St. Clair Ave., Cleveland) Bialosky

JURY COMMENTS: “A beautifully conceived abstraction of light and history, this project draws inspiration from 8

Architecture Honor Award Winner: Cleveland Public Library Glenville Branch

both its site and its civic purpose. It reimagines the existing building’s strong architectural character with confidence and clarity, revitalizing its geometric rigor while deepening its sense of place.”

Harry M. Cornell Arts & Entertainment Complex

ARCHITECTURE Honor Award

Harry M. Cornell Arts & Entertainment Complex (212 W. 7th St., Joplin, MO) DLR Group

JURY COMMENTS: “A dynamic composition that unites formal ambition with civic generosity. A confident civic composition that bal-

ances formal strength with openness and invitation. Carved and subtracted volumes draw the public in, while clear planning and flexible spaces reinforce the building’s role as a cultural and community anchor.”

Cleveland Museum of Natural History

ARCHITECTURE Merit Award

Cleveland Museum of Natural History

(1 Wade Oval Dr, Cleveland) DLR Group

JURY COMMENTS: “A sophisticated integration of sustainable performance and architectural expression. The projProperties | January 2026

Photos of The Cornell Complex and CMNH by Kevin Reeves

The 2025 design awards jury chair was Brian MacKay Lyons, FAIA, a Canadian architect and founder of MacKay-Lyons Sweetapple Architects in Nova Scotia.

Renowned for his minimalist, siteresponsive designs, he draws inspiration from local materials, vernacular building traditions and the coastal landscape of Atlantic Canada.

AIA Cleveland held the annual Design Awards celebration, with over 350 people in attendance on Friday, November 7, 2025 at the Hotel Cleveland.

There were six categories in this year’s program, including Architecture (24 total project entries), Interior Architecture (17 entries), Small Projects (three entries), Unbuilt Projects (six entries), Makers (six entries) and Student Projects (40 entries).

The Architecture category celebrates the best contemporary architecture regardless of budget, size, style or type, while the Interior Architecture category honors innovative interior spaces. The Small Projects category recognizes projects less than 5,000 square feet. The Unbuilt Projects category highlights projects that are not expected to be constructed but demonstrate excellence in research, design theory and performance. The Makers category spotlights unique materials, details or technologies in which the expression of architecture and the craft of making come together. Lastly, student design work is recognized by the Student Projects category.

Winning projects included:

Photo by Christian Phillips

he Cleveland chapter of American Institute of Architects (AIA Cleveland) recognizes excellence in design each year by inviting Cleveland-based architecture firms to submit their best work to be reviewed by nationally renowned juries from all over the country.

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Carolina Theatre

ARCHITECTURE Merit Award

Foundation for the Carolinas Carolina Theatre (230 N. Tryon St., Charlotte, NC) DLR Group

JURY COMMENTS: “A sensitive restoration and addition that reactivates a long-dormant landmark. The transparent new lobby engages the street, while the renewed interior preserves its heritage with clarity and care. The result is a poised blend of memory, utility and urban renewal.”

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Form Factory 1

ARCHITECTURE Honorable Mention

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JURY COMMENTS: “A clear and disciplined response to a utilitarian and somewhat difficult building type.

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Through a simple yet deliberate architectural gesture, the project elevates the factory typology with clarity and consistency, inside and out.”

Peg’s Home & Gallery

Small Projects Merit Award Winner: Proof

(53 First St., Hudson) +Detail with Peninsula Architects JURY COMMENTS: “A warm and welcoming interior that beautifully reflects the foundation’s mission of creativity and community. Material restraint, daylight and warmth create a calm backdrop for creative engagement, while the playful ‘peg’ motif anchors the project’s identity with grace and wit.”

and material to express authenticity and warmth, achieving a notable coherence across its small scale.”

Greer Caberet Theater

INTERIOR ARCHITECTURE Honorable Mention

Greer Cabaret Theater

Photo by Ed Massery

(655 Penn Ave., Pittsburgh) DLR Group

Form Factory 1

INTERIOR ARCHITECTURE Merit Award

Form Factory 1

(26 Iron Way, Weirton, WV) Stantec Architecture JURY COMMENTS: “A disciplined and cohesive interior that elevates an industrial program through clarity and precision. The result is a confident and unified interior expression that mirrors the project’s innovative spirit.”

Photo by Billy Delfs

Peg’s Home & Gallery

JURY COMMENTS: “A richly detailed interior that transforms a utilitarian space into an evocative cabaret setting. Its railinspired motif and careful layering of light, texture and form create an atmosphere that feels both nostalgic and new.”

SMALL PROJECTS Merit Award

Proof

(4116 Lorain Ave., Cleveland) AODK JURY COMMENTS: “A spirited and tightly composed renovation that transforms a modest diner into a place brimming with character and atmosphere.

The design skillfully layers texture, light

The Roundstone Pavilion at Ohio City Farm

SMALL PROJECTS Honorable Mention

The Roundstone Pavilion at Ohio City Farm (2304 Bridge Ave., Cleveland) Young Design Studio

JURY COMMENTS: “A clear and appropriate response to type and program.

Simple forms and restrained detailing foster a sense of purpose and connection between farm, community and city.”

UNBUILT PROJECTS Merit Award

Forest Hall DLR Group

JURY COMMENTS: “A wellresolved concept that interprets its www.propertiesmag.com 11

Photo of Greer Caberet Theater by Kevin Reeves

INTERIOR ARCHITECTURE Honor Award

Forest Hall

Vega

natural inspiration with clarity and restraint. The building’s form, planning and material expression demonstrate thoughtful control, resulting in a proposal that feels both grounded and evocative. The proposal expresses a thoughtful relationship between landscape, structure and performance.”

approach to weaving diverse programs into a unified whole.”

CCPL Brooklyn Branch

MAKERS Honorable Mention

Huntington Convention Center Benches

Huntington Convention Center Benches Bowen+

UNBUILT PROJECTS Honorable Mention

Guardian Yards Bowen+

JURY COMMENTS: “An inventive response to a practical challenge, transforming required security infrastructure into civic amenity. The custom benches unify function, identity and material craft, turning a protective measure into a welcoming gesture of urban design.”

Vega

Rendering of Vega courtesy of AODK

AODK

JURY COMMENTS: “An ambitious proposal that explores the courtyard as a contemporary urban typology. The design demonstrates a strong instinct toward spatial variety and community connection, offering a thoughtful 12

Bialosky

JURY COMMENTS: “A thoughtful integration of utility and expression.

These custom light fixtures extend the building’s folded geometry into sculptural form, achieving a measured balance between function, craft and playfulness.”

STUDENT Honor Award

Linear Shift

KSU Student: Michael Conrad Professor: Jean Jaminet

STUDENT Merit Award

JURY COMMENTS: “A confident exploration of a challenging building type. The proposal demonstrates a clear organizational logic and a strong formal presence, balancing modern expression with contextual sensitivity to Cleveland’s architectural heritage.”

UNBUILT PROJECTS Honorable Mention

Cuyahoga County Public Library Brooklyn Branch – Custom Light Fixtures

CAED Shaded

KSU Student: Carleigh Culver Professor: Ivan Bernal

STUDENT Merit Award RiverRock House

MAKERS Merit Award

RiverRock House Quadriga Studio

JURY COMMENTS: “An exemplary exercise in architectural stewardship

Pine Cone

KSU Student: Nolan Finkbeiner & Josh Welsh Professor: Adam Yaracs

STUDENT Merit Award

Residential Rhythm

KSU Student: Emma Hoffman Professor: Filippo Caprioglio Properties | January 2026

Photo of Huntington Convention Center Benches by Eric Hanson; RiverRock House by Robert Shearer

Rendering courtesy of Bowen+

MAKERS Merit Award

Guardian Yards

Photo by Christian Phillips

Rendering courtesy of DLR Group

and craft that resolves complex construction challenges while preserving the integrity of the original vision.”

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PRIZED DESIGNS Winning student projects included (1) Linear Shift; (2) CAED Shaded; (3) Pine Cone; (4) Residential Rhythm; (5) Our House; (6) Village at Scale; (7) B372; (8) Kinetic Skin; and (9) Vertical Street.

STUDENT Merit Award

Our House

KSU Student: Nancy Rhoades & Sydney Strang Professor: Nick Safely

STUDENT Honorable Mention

Village at Scale

KSU Student: Virginia Mellinger Professor: Steven Kordalski

STUDENT Honorable Mention

B372

KSU Student: Anete Osi Professor: Sung Ho Kim & Zuzana Kubisova

STUDENT Honorable Mention

Kinetic Skin

KSU Student: Garrett Scott Professor: Jean Jaminet

STUDENT Honorable Mention

Vertical Street

KSU Student: Nathan Carpenter & Marzieh Jafari Doost Khaledi Professor: Greg Stroh

PRESIDENTIAL CITATION Gwendoyln Frank, AIA Michael Christoff, AIA DVA Architecture Jodi Van Der Wiel, FAIA

EMERGING PROFESSIONAL AWARD Amber Price, AIA PEOPLE’S CHOICE

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Images provided by AIA Cleveland

1

Rural Roots, Modern Retail

Hartville Hardware & Lumber reinvests in Middlefield with 175,000-square-foot store

By Properties Staff | Photos by Titus Kurtz (TJK Media)

A

fter more than a year of construction, Hartville Hardware & Lumber has reopened its Middlefield Village location in a dramatically expanded new facility designed to better serve both professional tradespeople and the surrounding rural community. The new 175,000-square-foot store, located at 15260 Kinsman Rd., opened in September and replaces the company’s former, smaller Middlefield operation with a purpose-built retail and lumberyard complex tailored to local needs.

The new store was envisioned as a long-term investment in a community it has served for years, according to Kelli Hill, marketing director with Hartville Hardware & Lumber.

“The new Middlefield store represents a significant upgrade from our previous location in size and functionality,” Hill says. “It allows us to offer a broader product assortment, wider aisles, improved merchandising and a much more comfortable shopping experience overall.”

Flow, function + familiarity

The project team, which included architect John Elsey, of GBC Design, Inc., and Ivan Weaver Construction Inc. as general contractor, focused on building a store that would be easy to navigate and flexible for future growth.

“From the beginning, our goal was to create a store that felt both purposeful and welcoming,” Hill says. “Functionality 14

was key with a focus on clear sightlines, department flow and spaces that support our guests.”

Inside, the store features color-coded department walls to simplify wayfinding, charcoal-colored fixtures and

features are unique to the new facility, Hill says.

“The Middlefield location includes several design elements tailored specifically to the community,” she notes. “These include expanded outdoor and agricultural-related spaces, an enhanced lumber and building materials areas, and design details that reflect the rural character of the surrounding area.”

For instance, one defining interior feature is an expansive back-wall installation that celebrates the surrounding community’s agricultural heritage and landscape. Along the Kelli Hill sales floor, three-dimensional elements reference familiar rural structures, Hartville Hardware & Lumber including a red barn with white crossbuck doors and a sloped metal roof, a custom end caps and composite deck- silo clad in light-toned vertical panels ing-clad cash register stations. While with metal banding, as well as a corn the store shares brand consistency with crib and farmhouse constructed of wood its flagship location in Hartville, a few slats and corrugated metal.

“Our goal was to create a store that felt both purposeful and welcoming.

Functionality was key with a focus on clear sightlines, department flow and spaces that support our guests.”

Properties | January 2026

SIZING UP Hartville Hardware & Lumber’s new Middlefield store (top) features design elements that nod to the surrounding community’s agricultural heritage and landscape (middle), along with vastly expanded product offerings (bottom).

Behind and around them is a fullheight mural created by local artist and high-school art teacher Emily Meraj (Lake Center Christian School) and her students. Spanning the wall, the painted piece depicts rolling farmland, fenced pastures and distant hills under a bright sky, along with hay bales and grazing cattle.

Expanded products + expertise

The scale of the new building allowed Hartville Hardware & Lumber to broaden its product mix. Expanded departments include tools, outdoor power equipment and building materials, as well as a full integration of the company’s former Middlefield paint store into the new footprint.

Notable additions include a larger building materials showroom featuring ProVia and Andersen windows and doors, TimberTech decking and expanded millwork offerings. Interior trim, hardwood boards and hardwood plywood inventory has increased, and a dedicated countertop design center now provides expert support for custom projects.

The store also places a renewed emphasis on appliances and flooring, complete with installation services, as well as a housewares department featuring simple-living products from Lehman’s Hardware.

A new wood processing category highlights brands such as Wolfe Ridge and Logosol.

Staffing expanded alongside the building itself, with the Middlefield team growing from 50 to 106 employees, largely through local hiring.

Site logistics, operational efficiency

Beyond the sales floor, the project focused heavily on operational efficiency, especially within the lumberyard and delivery areas. The yard was designed to minimize forklift drive time, improve weather protection for materials and streamline both incoming and outgoing truck traffic. Dedicated unloading zones and www.propertiesmag.com 15

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EFFICIENT OPERATIONS The store’s drivethrough lumberyard allows guests to drive in, load up and pay when exiting, streamlining the product pick-up process, especially in inclement weather.

launch areas support contractor pickups and deliveries.

One of the project’s most distinctive site features is a 3,000-square-foot buggy barn.

“The buggy barn is a unique, standalone structure located outside the main store,” Hill says. “It was designed to serve

“The new Middlefield store represents a significant upgrade from our previous location in size and functionality.”

Kelli Hill Hartville Hardware & Lumber our Amish and Mennonite customers who travel by horse and buggy, providing a covered, convenient place to park while shopping. The barn is constructed with functionality in mind, using materials that complement the overall look of the building while fitting naturally into the rural setting.”

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Hill says the community response to the new store has been overwhelmingly positive. “Customers appreciate the expanded selection, improved layout and overall ease of shopping,” she says. “We’ve also heard a great deal of appreciation from the surrounding community for the investment in Middlefield and for creating a store that reflects local needs and values.” P Properties | January 2026

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Geis is proud to be the contractor partner to ACRE LLC. on their new Skyline on Stokes Development.

For over 58 years, Geis continues to deliver multi-family projects on time and on budget!

Intentional Approach

Site constraints help shape scale, massing + experience at Skyline on Stokes

By Scott Esterly | Photos by Doug Bardwell & Scott Esterly

S

Developed by Atlanta-based owner ACRE, Skyline on Stokes was designed

by LDA Architects and delivered by Geis Companies through a closely coordinated design-assist collaboration. Geis served as construction manager at risk while also working alongside the LDA team to shape the project’s design and execution, a delivery approach that allowed constructability, cost and long-term operations to be considered early and often.

Signet Management was selected as the third-party property manager.

“What immediately stood out to me was the scale and intentionality of the project,” says Jessica Miller, Signet’s

property manager for Skyline on Stokes, recalling her first impressions of the development. “Skyline on Stokes isn’t just another apartment community. It was clearly designed as a destination within University Circle.”

A site that shapes the project

The development occupies approximately 2.2 acres at 2132 Stokes Blvd. and is bounded by multiple streets, giving it high visibility but limited flexibility. Its irregular geometry demanded early decisions about where the building should assert itself and where it should step back, as well as how vehicles, pedes-

trians and service functions would move through the site.

“The triangular site is unique,” says Steve Jennings, architect with LDA. “Approaching from the north and south, one doesn’t have the perception of it being a much larger site.”

That perception informed one of the project’s defining moves. Along Stokes Boulevard, the primary building rises seven stories, establishing a strong urban edge appropriate to the corridor and reinforcing the area’s increasingly dense, institutional character. Along Cedar Avenue, the scale steps down into a series of townhome units that align more www.propertiesmag.com 19

Photo courtesy of Signet Real Estate Group LLC

kyline on Stokes was shaped as much by its site as by its program. Located on a constrained, triangular parcel at the intersection of Stokes Boulevard and Cedar Avenue in Cleveland’s University Circle and Fairfax neighborhoods, the project required early clarity around scale, access and how a new residential development could transition into its surroundings. Rather than treating those constraints as limitations, the project team used them to guide decisions about massing, circulation and daily experience, allowing the building to respond to its context without overwhelming it.

Photo by Doug Bardwell

TAKING SHAPE The project’s triangular, constrained site directly informed decisions about massing, access, circulation and how the building engages surrounding streets.

closely with the surrounding residential fabric. The transition reduces the visual impact of the larger building while creating a more comfortable relationship with adjacent streets and neighboring homes.

The completed development includes 263 residential units in total. The sevenstory apartment building contains 255 units, 12 of which are income restricted and designated for households earning up to 80% of area median income, while the townhome component adds eight rental units arranged as two buildings with four units each. In addition to screening parking and service areas from view, they establish a residential edge that softens the project’s perimeter and reinforces a sense of neighborhood continuity. Each townhome includes an attached two-car garage and a small study or office at the garage level, offering a housing option that feels distinct from the main building while remaining closely connected to its amenities.

From drawings to construction

Planning for Skyline on Stokes began several years before construction, with early design work taking shape around 2022. Groundbreaking occurred in December 2023 on a site that had pre20

viously been used primarily for surface parking, with limited existing infrastructure. Early site work progressed smoothly, with minimal remediation required and no significant subsurface surprises, allowing the project to move forward without major disruption.

The building is organized as a fiveover-two structure, with two levels of precast concrete deck and podium con-

site. Careful coordination was required at the transition between the podium levels and the wood-framed upper stories, particularly around window placement, exterior detailing and envelope continuity.

Grading and earthwork decisions were also addressed early in the process. Rather than relying on heavy fill or extensive retaining conditions, the team focused on balancing the site to support both the building and its outdoor spaces.

“At the end of the day, it was about three feet in the far corner that we’d dug out,” says Brandon Kline, vice president of design at Geis Companies. “The site was balanced, which was huge. That’s always what you want to do.”

Brandon Kline Those grading decisions allowed Geis Companies portions of the outdoor amenity areas to be subtly set above surrounding struction supporting five stories of wood elevations, creating defined spaces that framing above. feel protected without becoming discon“We essentially designed two separate nected from the street. In select areas, buildings stacked on top of each other,” the grade change is just enough to proJennings says. vide privacy while preserving visual and The team utilized a panelized wood physical connections to the surrounding framing system, with prefabricated wall sidewalks and neighborhood. sections delivered and installed in tight Market volatility remained a constant sequences. That approach allowed the factor throughout construction. Shifting structure to rise quickly on a compact material costs and evolving regulatory

“We did such a good job on cost control and cost management on this project, there was actually money and surplus to put back in.”

Properties | January 2026

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INVITING ENTRANCE The main lobby is anchored by a triangular central sofa and fireplace, creating a strong visual focal point and natural gathering space upon entry.

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considerations required ongoing evaluation as the project progressed. According to the team, the design-assist project delivery structure allowed decisions to be tested against constructability, sequencing and long-term performance, helping the project navigate uncertainty without sacrificing quality or intent.

Skyline on Stokes reached substantial completion in late July 2025, and the first residents moved in July 31.

“We did such a good job on cost control and cost management on this project, there was actually money and surplus to put back in,” Kline says.

Materials + exterior expression

Material selection at Skyline on Stokes focused on durability, longevity and how the building would be perceived over time within University Circle. The exterior combines brick veneer with metal siding, including wood-tone metal panels used to introduce warmth and texture without the maintenance demands of natural wood.

The material palette reinforces the project’s massing strategy. Brick grounds the building visually at the street level, while lighter metal elements help articulate upper floors and accentuate setbacks. The exterior expression is consistent across elevations, allowing the building to read as a cohesive whole despite its varied massing.

Oversized windows are distributed regularly across the façade, bringing daylight deep into units while reinforcing a consistent exterior rhythm. At ground level, glazing helps activate common areas and provides transparency into shared spaces, offering glimpses of activity without turning the building into a display.

Amenities organized for daily use

Amenities at Skyline on Stokes were planned as part of the building’s daily infrastructure rather than as secondary features. Shared spaces are concentrated on the first floor, creating a clear and accessible hub that residents pass through as part of their regular routines.

“The coworking spaces, conference rooms and library cater perfectly to residents who work hybrid or remote schedules,” Miller says.

The first-floor experience begins with a main lobby organized around a large triangular central sofa and fireplace, establishing a visible gathering point that anchors the building’s common areas. Adjacent spaces flow into one another, allowing residents to move easily between social, work and fitness functions without needing to navigate multiple floors.

The coworking space was designed as a true work hub rather than a small business center. The open coworking Properties | January 2026

Photo by Scott Esterly

WORK + RELAXATION The expansive coworking space was designed as a true work hub, offering flexible seating, abundant daylight and adjacent reservable conference rooms.

area measures nearly 2,000 square feet and is paired with four conference rooms that can be reserved as needed. Within the main space, residents find a range of work settings, including individual workstations, shared tables, soft seating for longer sessions and a large communal meeting table. Large windows bring daylight deep into the room, while wood ceiling accents, integrated lighting and a neutral material palette help define zones without breaking the openness of the space. Power and connectivity are distributed throughout, allowing the room to function comfortably across different work styles and schedules.

The library is positioned alongside the coworking area as a quieter place to read, work or step away from the more active shared spaces. Built-in wood shelving lines the room, creating a simple backdrop for books and small seating areas.

Along two walls, individual study desks with task lighting provide focused work spots, while a small lounge area supports more casual use.

“I see residents throughout these spaces,” Kline says. “The library gets used a ton, and the co-working and conference rooms get booked up a lot.”

The game room and social lounge provides a more casual setting for

informal gatherings. The space is anchored by a dramatic book-matched stone feature wall, paired with slim brass wall sconces that add warmth. A long surface bar with a quartz countertop and wood slat base runs the length of the space.

Flooring throughout the room is ceramic tile. Overhead, the ceiling is painted a deep green tone, creating contrast against the lighter walls. The space is rounded out with a ping-pong table, pool table, coffee machine, television and ample seating.

Fitness amenities include a 24-hour full-body gym with free weights, cardio

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Photo courtesy of Signet Real Estate Group LLC

GETTING TOGETHER The game room and social lounge provides a casual setting for resident interaction, featuring durable finishes, layered lighting and flexible seating arrangements.

machines, punching bag and a dedicated yoga and spin space. Additional support spaces include a community mail and package room, a pet washing station and a bike storage room, plus a TULU Smart Rental Store, which provides residents with on-demand access to household and lifestyle items.

Exterior patio + courtyard

Outside, the building extends that same everyday amenity mindset into a landscaped courtyard and patio environment. The outdoor deck includes a putting green, an outdoor kitchen and grilling area, plus multiple gathering

zones organized around fire pits and covered seating beneath a large pergola.

The patio area also benefits from the way the grade was managed on site, allowing portions of the resident outdoor space to sit slightly above the sidewalk for added privacy without losing its connection to the street.

In the parking lot, nine Xeal electric vehicle charging stations provide a total of 18 dedicated charging spaces. The transit-oriented development includes ample bike parking both outside and inside the building.

The overall site also incorporates two public community park areas,

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including landscaping and sculptures, at each end of the main building along Stokes Boulevard.

Support spaces

From the start, Skyline on Stokes was designed to support efficient, predictable daily management. Circulation patterns, service access and back-ofhouse functions were planned early to reduce friction for both residents and staff, Miller explains.

“From an operational perspective, the building was designed with efficiency in mind,” she notes. “The separation of residential, amenity and operational spaces supports smooth daily operations.”

Trash rooms are located on every residential floor, streamlining service and reducing resident travel. That infrastructure also supports door-to-door trash collection offered five days a week.

Residential planning + unit mix

Construction & Painting 24

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Residential floors offer a variety of unit types within a compact footprint. The seven-story building along Stokes Boulevard includes studios, one-bedroom and two-bedroom apartments, as well as loft-style units.

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SCALED LIVING From compact loft units with open bedroom-living arrangements (top) to larger two-story residences (middle), Skyline on Stokes uses natural light, efficient planning and contemporary kitchens (bottom) to create a range of comfortable living environments.

The townhomes along Cedar Avenue follow largely consistent layouts, with end units offering slightly larger floor plans. Unit sizes range from approximately 1,170 to 1,355 square feet.

“The project focused on smaller units, but there’s a wide variety, including loft-style spaces and options that feel more like homes than apartments,” Jennings says.

Interior planning emphasized openness and clarity. Large windows and efficient layouts maximize natural light and create a sense of volume,

“The project focused on smaller units, but there’s a wide variety, including loft-style spaces and options that feel more like homes than apartments.”

Steve Jennings LDA Architects

Photos by Scott Esterly

even within smaller units. Kitchens feature quartz countertops, tile backsplashes and stainless steel appliances, while wood-style luxury vinyl plank flooring provides durability throughout living spaces.

Many units, particularly studios, are offered fully furnished, providing turnkey living options that include modern furniture and everyday essentials.

“Residents have responded very positively to the option of choosing between two interior color schemes,” Miller says.

Select units in the main building include Juliet-style balconies, and floor plans range from compact studios under 400 square feet to twobedroom layouts exceeding 1,300 square feet, allowing the building to accommodate a variety of living patterns and life stages.

“Layout clarity was equally important,” Miller says. “The open floor www.propertiesmag.com 27

ACTIVE AMENITIES Resident amenities at Skyline on Stokes extend from an outdoor patio with pergola and firepits (top) to a putting green (middle), and a fully equipped fitness center designed for daily use (bottom).

plans maximize space and natural light while still feeling elevated for everyday living.”

Photo courtesy of Signet Real Estate Group LLC

Early response + neighborhood fit

Photo courtesy of Signet Real Estate Group LLC

Since opening, early indicators suggest the building is performing as intended. According to Miller, feedback from residents has centered on consistency, responsiveness and the overall experience of living in the building.

“Since opening, Skyline on Stokes has maintained a 5.0 Google rating,” she says. “Residents often mention the staff and attention to detail as part of the overall living experience.”

The project’s location within University Circle and Fairfax continues to shape its resident base, attracting professionals and residents whose daily routines are closely tied to nearby institutions and employers.

“Skyline on Stokes attracts professionals, medical and academic affiliates, and residents who value proximity to University Circle,” Miller says.

Modern urban living

Photo by Scott Esterly

As Skyline on Stokes moves beyond its initial opening, the project is beginning to settle into its role within University Circle and Fairfax. The building’s form, unit mix and amenity strategy reflect decisions made early in the process, many of them driven by the site itself and the expectations of a neighborhood defined by institutions, nearby residential streets and daily pedestrian activity.

According to Miller, those early choices continue to shape how the building functions day to day.

“Skyline on Stokes represents more than just a place to live,” Miller says.

“It reflects a thoughtful approach to modern urban living.”

That sentiment is echoed by the project team.

“The one word I’d use for the project is intentional,” Kline says. “Everything was intentional and thought out.” P 28

Properties | January 2026

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Bridging the Talent Gap

ACE Day connects future workforce with college/career opportunities

By Rhonda Crowder | Photos by Alaina Battle

E

very December, for the last 13 years, the ACE Mentor Program of Cleveland has hosted ACE Day – an opportunity to expose Cleveland-area students to the architecture, construction and engineering (ACE) professions. The event consists of an ACE project-based activity, college/career exhibition area and a hands-on trades exhibit with groups rotating between three stations. There is also always a raffle with lots of prizes, including items from the Cavaliers and Guardians.

This year, ACE Day was held at Cleveland State University’s conference area inside the Wolstein Center with more than 145 teens, from 11 high schools, in attendance. Glen Shumate, ACE Cleveland executive director, welcomed the students before introducing Asha Brown, an ACE Cleveland alum who attended Max Hayes and Lincoln West.

“ACE helped me confirm my passion for engineering,” says Brown, who went on to graduate from the University of Akron and now works as a project engineer at Whiting-Turner. “I gained a fuller understanding of the industry through ACE.” At Whiting-Turner, she reconnected with ACE and now serves as an ACE INVITING OPPORTUNITY The 2025 ACE Day was held at Cleveland State University’s Wolstein Cleveland mentor at Warrensville Center with more than 145 teens in attendance.

Heights High School. She finds being a my years as a mentor, I noticed students received change orders requiring them to mentor, helping students envision their future, rewarding. Brown also serves on are easily distracted with presentations reorder their sequence based on the new the ACE Cleveland Alumni Committee. so we want to encourage a different style problem – from a flooded basement to missed client payments.

Professionally, she’s currently working of learning.”

Acting as project teams for a new “The idea behind this activity is the on the Birthing Beautiful Communities community center, groups of ACE project will change while you are workproject on E. 65th and Chester. ing, just like in real life,” Myer says.

“ACE helped set me on this path When the teams finalized their by giving me early exposure and sequence, they needed to be able to confidence,” she says. answer the following questions: what Richard Schoephoerster, dean of caused your biggest delay, which role Washkewitz College of Engineering was impacted the most, and what at Cleveland State University (CSU), was the hardest decision to make? also welcomed students to the “The activity allowed for teams campus. He talked about CSU’s new of students to debate the terms and Construction Management program order and learn about the design and how making sure the school Joe DiGeronimo process,” Myer adds. attracts talent keeps him up at night.

In the hands-on trades exhibit area, During the ACE Mentor projectPrecision Environmental Company various activities were guided by local based activity, Sam Myer LEED construction companies and unions.

ID+C, interior designer at AODK “I think this is very important,” says Architecture and co-lead mentor at Day participants were given a shuffled Garrett Morgan High School, facili- deck of phase cards. They had to work Mike Soltis, a 24-year tilelayer and busitated a base sequence/change order and together to determine the order, without ness representative for the Cleveland/ assistance from their advisors, from first Akron/Canton area of the Local 23 final lock-in activity.

“In years past, the RFP presentation idea to opening day. Once they had International Union of Bricklayer and has been lecture-style,” Myer says. “In the process in order and approved, they Allied Craftworkers. “It gives young

“By giving them the opportunity to not only see, but to be able to actually operate equipment and tools of the trade, is an experience most [students] have not been able to have in their life.”

www.propertiesmag.com 31

1

4

2

5

3

6

EXPERIENTIAL ACTIVITIES ACE Day included a college/career exhibition area (1) where high school students could learn about opportunities in the AEC industry (2), plus a hands-on trades exhibit guided by area companies and trade organizations (3, 4). The event also included a project-based competition between teams of area students (5, 6).

people the opportunity to learn what the trades have to offer.”

Nicole Ohmer, a field representative also with Local 23, says their organization continues to show up at ACE Day because they “want to stay relevant.”

“It’s an opportunity to inform young people that they can earn as they learn,” she says.

Other organizations in the hands-on trade exhibit included Chas E. Phipps Company, Precision, Gilbane and Ruhlin. ACE Cleveland participants were able to conduct a virtual ACE Model Scavenger Hunt at the Gilbane table and learn about building concrete walls at the Ruhlin table. Precision and Chas E. Phipps Company brought compact skid-loaders – battery-powered, fume- and emission-free equipment used for interior demolition and construction.

“I think we’re seeing a lot of interest,” says Daniel Sager, Ruhlin assistant project manager. “A lot of kids have been very receptive.”

Joe DiGeronimo, vice president of Precision Environmental Company and a member of ACE Cleveland’s Career Pathways Committee, worked to activate the hands-on trades exhibit. He believes ACE Day is an important way to expose local ACE High School students to careers in construction trades.

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“By giving them the opportunity to not only see, but to be able to actually operate equipment and tools of the trade, is an experience most have not been able to have in their life,” DiGeronimo says. “Construction companies that comprise the CEA [Construction Employer’s Association] and support ACE Mentor Program do

“ACE helped me confirm my passion for engineering. I gained a fuller understanding of the industry through ACE.” Asha Brown Whiting-Turner so in our ongoing, relentless pursuit of finding our next generation workforce.”

According to DiGeronimo, ACE Mentor’s 15 years in Cleveland has influenced quality individuals to join the industry and current professionals look forward to finding the next talented home-grown prospects.

“We are even more excited about this program being at Cleveland State University, home to its new Construction Management degree program offering

further industry education opportunities locally,” he says.

The college/career exhibition area included resource tables hosted by universities, employers and other ACE-related organizations, such as National Society of Black Engineers (NSBE Jr.) who also provide K-12 STEM programming.

Jamal Warith manned the NSBE Jr. table in the college/career exhibition area. Like ACE Cleveland, the organization exposes young people more specially to the different fields of engineering. “I believe in these types of events,” says Warith, who used it as an opportunity to recruit.

Keri Ash, director of preconstruction OH/MI/PA at Gilbane Building Company, serves as ACE Cleveland Career Pathways Committee chairperson.

“Our efforts are to make connections for ACE students by exposing them to careers through presentations, shadowing, career development, internships and supporting entry into the industry,” Ash says. “ACE Day is a great way to begin that process.”

Cristian Colon, a senior at Max Hayes, is in his second year of the ACE Cleveland program. He currently works at Menards, never thought about going to college and still lacks the desire. He has narrowed his interest to the ACE industry but hasn’t Properties | January 2026

yet honed in on which career pathway he would like to take.

“ACE [Cleveland] got me into it,” Colon says, adding that he enjoyed the activities at ACE Day and “had a lot of fun” talking to Precision staff.

He says that the ACE Cleveland team sees opportunity in all of the participants. “They see talent within everyone,” he says.

Treasure Vinson, a senior at Shaker Heights, on the other hand, is dead set on becoming an architect. She joined ACE Cleveland as a sophomore and participated on and off, then “locked in” this year.

“It’s a perfect fit,” she says. “ACE [Cleveland] has done a lot for me.

TEAM BUILDING Shaker Heights High School was among 11 area schools represented with It’s amplified my passion and is like student participants at ACE Day. a village.”

For Shumate, part of the ACE Day ties in our industry, via exhibitors, is Vinson’s plan is to attend Cuyahoga Community College to study inte- goal is to excite, enlighten and engage a critical part of developing a future rior design, then transfer to Kent State the students through the three pro- workforce,” Shumate says. P University for architecture. She came to gram areas, offering a level of exposure, ACE Day with a goal: to make connections excitement and reality by offering real ACE Mentor Program of Cleveland is a volunand learn about potential internships. opportunities for them to experience teer-driven industry program, with 160 volunteers While there, she discovered more about and be informed. and 70 companies fueling and supporting its “Helping them become more aware activities. ACE Mentor Program of Cleveland an unfamiliar company and connected with the National Organization of and building confidence in their is seeking others interested in helping attract and understanding of career opportuni- develop our future workforce.

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BILLBOARD News about people, products, places & plans

DOAC Announces 2026 Methods & Materials Mania Event

Photo courtesy of DOAC

D

esign Ohio - Akron-Canton (DOAC) recently announced details about its annual Methods & Materials Mania event, which will take place at Quaker Station in Akron on February 25, 2026. The event brings together professionals from Northeast Ohio’s construction and design industries for a day of hands-on learning and networking.

The program is designed to help emerging professionals understand how materials and sysMethods & Materials Mania 2025 tems work in real-world applications. Attendees rotate through multiple demonstration areas where exhibitors work together to show correct use, performance and installation. In addition to the hands-on experiences, the event will feature educational sessions aimed at addressing key industry challenges.

Methods & Materials Mania is open to architects, engineers, contractors, material suppliers and other industry professionals. For more information on the event and to register, visit designohio-akron-canton.org.

Hahn Loeser & Parks Adds Two Associates Hahn Loeser & Parks LLP has expanded its Cleveland litigation team with the addition of Katherine E. Clawson and Sera M. Martin, both recently admitted to the Ohio Bar and former summer associates at the firm.

Clawson will support the firm’s work on construction-

34

related matters, complex commercial disputes, product liability actions, contract disputes, compliance matters, employment disputes, breach of fiduciary duty actions and fraud claims. Prior to Hahn Loeser, she externed for a federal judge in Youngstown and with Case Western’s Office of General Counsel. She was also a certified legal intern in the Sixth Circuit and Ohio

Supreme Court, representing clients in the appellate litigation clinic. She is a graduate of Case Western Reserve University School of Law, where she was a Legal Writing Honors Fellow and a senior editor for the Journal of Law, Technology & the Internet.

Martin will work closely with construction litigation, real estate litigation and commercial litigation

Katherine Clawson

matters. She has experience assisting individuals, small businesses, and companies on a diverse range of litigation matters. Martin externed for Judge Calabrese at the Northern District of Ohio Federal Courthouse. She was also a Certified Legal Intern with the Summit Legal Defenders, gaining valuable in-court experience practicing at Summit County Municipal Court.

Martin earned her J.D. from the University of Akron School of Law where she was president of the Federal Bar Association and the

Properties | January 2026

BILLBOARD News about people, products, places & plans

Sera Martin

Business Law Society student chapters and a member of Akron Law’s Trial Team.

BOMA Northeast Ohio Announces 2026 Leadership The Northeast Ohio chapter of Building Owners

and Managers Association (BOMA Northeast Ohio) recently welcomed its 2026 president and board of directors at its Annual Business Meeting, held at Sausalito in Garfield Heights. The association’s new leadership team includes President Brad Butler (KeyBank Corporate Real Estate), President Elect Kevin Ballish (NAI Pleasant Valley), Vice President Alan Hazzard (Westfield Group), Secretary/Treasurer Nick Riley (Millennia Commercial Group) and Past President Laban Zurowski (Progressive Companies).

The association’s board of directors for 2026 includes John Brezine (Service Master CDR), Kevin Gail (Dalad Group),

(Progressive Companies) and Cathy Schulz (Weston, Inc.).

Bowen Opens New Erie, Pennsylvania Office

Brad Butler

Michael Lathtrop (Cavs/ Rocket Arena), Diana Lis (Lee Cleveland Property Management), Judy Nowak (KONE Elevators & Escalators of Cleveland), Chris Ogden (Federal Reserve Bank of Cleveland), Gurdeep Rihal

Cleveland-based Richard L. Bowen & Associates, Inc. has expanded its footprint with the opening of a new office in Erie, PA. The studio is led by architect Jason Wieczorek, AIA, who joins Bowen after leading JW Architecture & Design, the Erie firm he founded in 2020.

Wieczorek and his team bring a portfolio of local work, including the Erie Yacht Club expansion and interior renovations for Five Iron Golf. His move to Bowen strengthens the firm’s ability to serve clients across Western Pennsylvania

www.propertiesmag.com 35

BILLBOARD

Jason Wieczorek

while deepening its presence in a growing market.

AGC of Ohio Honors Three Northeast Ohio Projects Several Northeast Ohio construction projects were recognized at the Associated

General Contractors of Ohio Build Ohio Awards, presented during the association’s annual celebration in Columbus in November.

In the renovation category, Higley Construction earned a Build Ohio Award for its work on The Country Club historic clubhouse renovation in Pepper Pike. The project involved extensive updates to the long-standing private club while preserving its architectural character.

Rudolph Libbe Inc. was honored in the industrial/ heavy category for its role in Ford Motor Co.’s Ohio Assembly Plant expansion in Sheffield, a large-scale manufacturing project.

In the new construction over $50 million category, The

Photo by Doug Bardwell

News about people, products, places & plans

The Davey Tree SEED Campus

Ruhlin Company received an award for The Davey Tree SEED Campus in Kent. The corporate campus supports research, education and workforce development for the employee-owned company.

Build Ohio Award recipients are selected by a jury of retired construction pro-

fessionals based on project management, innovation, client service and the ability to overcome complex construction challenges. P WHAT’S NEW? For complimentary coverage in Billboard, send company news & project information to billboard@propertiesmag.com.

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Properties | January 2026

Raising the Curtain at Encore

New cocktail bar brings Art Deco-inspired gathering space to Cleveland’s Playhouse Square

By Jill Lackey + Properties Staff | Photos by Dylan Palchesko

T

ucked inside the Lumen Building (1580 Euclid Ave.) in Cleveland’s Playhouse Square district, Encore opened in December 2025 as an intimate lounge designed to complement the energy of one of the city’s most active entertainment corridors. At just 1,120 square feet and limited to an occupancy of 49, the project delivers a strong sense of atmosphere and identity despite its compact footprint.

Designed by DS Architecture with Larsen Architects, Encore is conceived as a pre- and post-theater destination, where guests can enjoy crafted cocktails and curated upscale snacks in a cozy, elegant atmosphere.

The bar occupies what was previously an empty white-box space, according to Mark Huebner, project manager with Larsen Architects.

“This space was entirely custombuilt from the ground up, preserving only the storefront windows and door,” Huebner says.

The project was overseen by owner and developer, Abbas Mandviwala, who took a hands-on role throughout the process. Rather than hiring a separate construction manager, Mandviwala coordinated directly with the design and construction teams.

“He was deeply involved and incredibly organized,” says James Carlucci, owner of Form Construction, LLC, which served as both builder and fabricator on the project. “That level of engagement helped streamline decisions and allowed us to move quickly once everything was finalized.”

Setting the scene

The concept for Encore was developed

by DS Architecture, who established the core layout and overall design intent for the space. From there, Larsen Architects translated that vision into a fully functioning architectural set. DS Architecture also led the interior design, defining the look, feel and material direction that would shape the guest experience.

The architectural and interior design draws heavily from the visual language

of the surrounding theater district, Huebner explains.

“Modern, Art Deco-inspired elements echo the theater district styling,” Huebner says. “Antique mirror backpanels and glass shelving create an ‘infinity’ effect. The polished bar surface provides a solid, cool-toned contrast to the warm, soft textures of the walls and lighting, grounding the space and creating an intentional focal point.”

Color drenching played a central role in shaping the interior experience, with walls, moldings and ceilings painted the same shade of red.

“The space is dominated by a deep, saturated, monochromatic red,” Huebner notes. “This choice evokes the feeling of velvet stage curtains and creates an intimate, ‘sultry’ atmosphere. The red walls serve as a rich backdrop that allows the www.propertiesmag.com 37

INTO THE SPOTLIGHT Once patrons pass through the entry at Encore (left), they are welcomed by a cozy, sophisticated bar and lounge (right) that’s bathed in deep red, evoking the feeling of velvet stage curtains.

warm lighting to pop, creating a highcontrast, moody environment.”

Lighting is layered throughout the space, ranging from backlit alabaster elements to decorative crystal fixtures that hover above the bar and seating areas.

Furnishings reference marble and velvet, offering what the design team describes as a contemporary interpretation of classic Art Deco lounge pieces.

“Curated decor was strategically placed to create warmth, whimsy and interest throughout,” says Natalie Matteucci, director of interior design with DS Architecture.

Because of the bar’s small size and close seating arrangements, acoustics were addressed as part of the architectural solution.

“The main ceiling is entirely made from fabric,” Huebner says. “This acts as an intentional nod to the theater as well as acoustical softening.”

The flooring is new luxury vinyl plank installed in a chevron pattern, reinforcing the space’s tailored, geometric sensibility.

Large street-facing windows introduce daylight during off-peak hours, while creating an inviting glow to passersby along Euclid Avenue at night.

Construction + custom fabrication

Form Construction, LLC produced and installed nearly all of the major interior elements. Among the most 38

prominent is a custom U-shaped banquette that anchors the seating layout.

“Form Construction custom-fabricated and installed the U-shaped banquette, along with the other major fixtures throughout the space, including the bar, bar back, architectural archways and ceiling elements,” says James Carlucci, owner of Form Construction.

“For the banquette, [we] worked from the design drawings provided by the proj-

“The red walls serve as a rich backdrop that allows the warm lighting to pop, creating a highcontrast, moody environment.”

Mark Hueber Larsen Architects ect team and developed detailed 3D fabrication drawings to guide production,” Carlucci adds. “The piece was fabricated in-house at Form Construction’s Cleveland-based workshop using ¾-inch cabinet-grade plywood, with each component CNC-cut individually for precision and consistency.”

Once fabricated, the banquette was wrapped in foam, upholstered for durability and comfort, then assembled on site.

“What made the banquette unique was its tailored, U-shaped form and its

seamless integration into the architecture of the space,” Carlucci says.

In addition to furniture and millwork, the project included updated HVAC, plumbing and electrical systems.

Timeline + execution

Permits for the project were submitted to the City of Cleveland in April 2025, though the initial concept dates back several years earlier.

“One of the key challenges was ensuring that the custom millwork, furniture, upholstery and finishes worked together as a cohesive system rather than as separate elements – particularly in a high-traffic hospitality environment,” Carlucci says. “This was achieved through close collaboration between the designer, the owner and Form Construction, allowing the team to align design intent with real-world performance while maintaining a unified look throughout the space.”

Matteucci echoes the importance of early collaboration.

“Successful hospitality design is rooted in story, guided by function and financial realities,” she says. “By listening first, vision becomes spaces that feel effortless and enduring. Over four years, this project found that balance, elevating the guest experience while giving the client confidence, not added burden, at opening.” P Properties | January 2026

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2025

FINANCIAL REVIEW & FORECAST

2026

Right-Sizing Retail

Northeast Ohio’s market adapts to consumer behavior + e-commerce pressure

By Vince Mingo CBRE

N

ortheast Ohio’s retail real estate market is currently navigating a dynamic period of change from both local economic influence and a national shift in how retailers operate, providing both challenges and opportunity for landlords and tenants. The sector faces pressures from shifting consumer preferences and changes in retailers’ ideal store size.

One of the most significant factors that local and national retailers are facing is the continued impact of online shopping but understanding the consumer need to experience retail. The convenience and price competitiveness of e-commerce giants has impacted foot traffic in traditional brick-and-mortar stores, leading to closures – particularly in larger shopping malls and big-box retail locations. However, many successful retailers have navigated the need for both physical locations and online delivery. This trend has accelerated in recent years, forcing retailers to re-evaluate their physical footprints and strategies.

With retailers understanding consumer needs, the evolving nature of retail spaces is a key trend. In our market, a few national soft-good retailers have tried to adapt by creating a smaller footprint to still allow for the experience of retail but utilizing their online delivery platform to fulfill orders that may not be available with their smaller in-store inventory.

A great example of this trend is the Market by Macy’s, which backfilled the 30,000-square-foot former Bed Bath and Beyond at The Promenade in Westlake.

This exemplifies the shift from the large-scale department store to a curated neighborhood location.

Despite the continued growth of online sales, trends within the retail banking sector provide a useful case study for evaluating the enduring relevance of brick-and-mortar locations. Many banks reduced the number of branches within the market in the last decade as online banking strongly impacted foot traffic.

However, banks quickly have shifted away from this trend as they observed 40

that while customers may not utilize the branches the way they used to, the need remains to retain customers in that market. In Cleveland, we saw growth of new branches from the banking giants as the need for a brick and mortar presence is still needed. On a national scale, we have even seen some banks lean into larger footprints to entice consumers back into their locations with examples like Capital One Café. This trend in the banking world is a microcosm of the evershifting dynamic that soft good retailers are now navigating.

As retailers evaluate their typical store footprint, this has created a need for landlords to adapt spaces to these trends with several big box vacancies being split into multiple units to capture the need for retailers in the 20,000- to 30,000-squarefoot size rather than the former 80,000- to 100,000-square-foot need. Meanwhile small shop space in the 1,000- to 3,000-square-foot range has been in very high demand, creating a landlord-friendly market with a sharp increase in market rents. So while landlords try to keep pace with retailers’ dynamic needs, it is important for the market to remain nimble as the macro-economic environment continues to shift.

It’s not only retailers who are evaluating their business model and store footprints. Restaurant operators are also doing so, as they continue to see a shift to quick service restaurants (QSR) and fast-food establishments.

Both QSR and fast-food operators have continued to see growth, despite continued challenges with labor and rising food costs. With the continued growth, the tenant demand has created an extremely competitive market with record-low vacancy levels. Drivethrough restaurants continue to lead the way in demand as the restaurant industry continues to shift away from casual dining and rather towards quick service. This past year, we have seen closures from several casual dining chains but have seen numerous QSR and fastfood users enter our market. The heavy demand has led to an increase in occupancy costs for these users however, so it will be a trend to watch in 2026 as rents could potentially reach unattainable levels for operators’ potential sales volumes in the market.

Northeast Ohio’s retail real estate market is in a state of transformation that is mirroring many markets across the country. While challenges persist from e-commerce and changing consumer behavior, the market has continued to adapt quickly and achieved record-low vacancy rates. The macro-economic factors will continue to drive change in our market as 2026 is sure to present its own challenges and opportunities. P Vince Mingo is vice president, retail with CBRE Cleveland. For more information, visit www.cbre.com.

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www.propertiesmag.com 41

2025

FINANCIAL REVIEW & FORECAST

2026

FINANCIAL STRATEGIES Smart use of fiscal planning & action

Salty or Sweet?

T

he holiday season is always marked with an endless supply of goodies. While my favorite used to be the traditional box of mixed chocolates, over the last few years, a new favorite has emerged. I call it the “chocolate splatter” – a plate of traditional savory snacks, such as pretzels, popcorn, potato chips and nuts, with chocolate randomly drizzled over everything.

ALEC J. PACELLA

As I was working on grazing through this heap of goodness last month, I noticed that the salt would shine through on certain items, such as the pretzels and chips, while the sweetness would shine through on other items, such as the nuts and popcorn. And looking back on 2025, Northeast Ohio’s commercial real estate market had a lot of similarities to that platter, with some sectors being a little saltier while others being a little sweeter.

To see how things tasted, read on.

Overall economy: a little salty

Last year’s economic performance was a mixed bag. After surging a couple years

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ago, inflation was again largely held in check, ending the year around 2.5%.

Interest rates were slowly eased, aided by three well-telegraphed rate cuts of 0.25% each by the Federal Reserve.

Economic growth, as measured by gross domestic product, was moderate but uneven, with a mid-year burst after a slow start and surprisingly strong finish to the year. The resulting annualized growth rate is estimated to be just over 4%, with actual results hampered due to the government shutdown.

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the labor market clearly softened last year, with overall unemployment climbing to just under 5%. Job growth slowed and federal employment cuts increased, all creating an increasingly uneasy environment as the year progressed.

Industrial: moderately sweet

Sure, overall vacancy ticked up to approximately 4.5% and leasing velocity slowed a bit to just over 2 million square feet of positive net absorption. But this sector remained strong, as underscored by a couple of significant lease transactions.

On the east side, Piping Rock Health Products leased just over 400,000 square feet at the new Turnpike Commerce Center in Shalersville, which is the largest lease deal in the past five years.

And on the west side, B’laster Products leased just over 300,000 square feet at Westfield Commerce Park in Lodi. Sale activity was also brisk, highlighted by the portfolio sale from Dalfen Industrial to Plymouth Industrial REIT that included 10 properties in Northeast Ohio. The buildings collectively encompass approximately 1 million square feet.

Meanwhile, construction activity slowed, with very little speculative projects in the development pipeline. The largest local project is a 750,000-square-foot facility being built for the HC Companies in Middlefield and there was just under 2 million square feet of total industrial product in the development pipeline at the end of last year.

OVERNIGHT SUCCESS Last month, a 233,000-square-foot warehouse/distribution center occupied by FedEx Ground was sold for $23 million, or just under $100 per square foot.

Located in Richfield, this marks the fifth time that this property has been sold since it was completed in 2001. –AP A month later, Ridge Park Square, a 387,000-square-foot retail center in Brooklyn, sold for $55 million. This property had been owned by the original developer, Cleveland-based Zeisler Morgan Properties, since 1989.

On the tenant front, we said goodbye to familiar names, including Joann Fabrics and Rite Aid, both ending long runs as a result of bankruptcy. But we

Economic growth, as measured by gross domestic product, was moderate but uneven [in 2025], with a mid-year burst after a slow start and surprisingly strong finish to the year. The resulting annualized growth rate is estimated to be just over 4%, with actual results hampered due to the government shutdown.

Retail: a little sweet

Despite the headwinds associated with ever-growing internet sales, an unsettled job market and higher interest rates, retail sales continued to be resilient, ending the year with a growth rate just under 2%. Locally, the headlines were led by two blockbuster sales. Westgate Shopping Center, a 311,000-square-foot retail center in Fairview Park, sold for just under $52 million last July. This location was formally occupied by Westgate Mall before being redeveloped into an open-air center almost 20 years ago.

also said hello to a few fresh faces, with Columbus-based Bibibop continuing to expand its presence in the northern part of the state, the opening of three new Meijer supercenters across Northern Ohio and a resurgence of Qdoba, who added several new locations.

Office: mostly salty

While the COVID crisis shook the world over half a decade ago, the office sector continued to struggle in its aftermath. The overall vacancy rate remained persistently in the low- to mid-20% range, as tenants attempt to balance their space needs with the evolving workforce dynamics that typically resulted in tenants needing less space versus more. And, more impor-

tantly, rent growth remains flat. As a result, foreclosure activity had a noticeable increase last year. In Cleveland’s central business district, Northpoint Tower was the latest and most significant office complex to fall into receivership, while in the suburbs, the three-property Landerbrook Corporate Center office park, Metropolitan Plaza and 3800 Embassy Parkway all found themselves in the same situation.

And while there have been a few sales, the results have spoken volumes about investor sentiment in this sector.

In downtown Cleveland, 1100 Superior Ave. was finally sold almost three years after entering receivership. The sale price was $8.1 million or $14 per square foot (psf). Meanwhile, in downtown Akron, 76 South Main Street was sold for $900,000 or $2.50 psf.

However, not all the news in the office sector was bad. Jones Day, one of the largest law firms in the United States, reinforced its commitment to both Cleveland and the aforementioned Northpointe Tower by extending its lease, which totals approximately 350,000 square feet, at this complex. Other significant renewals included Roetzel & Andress and Perez Morris.

I am more optimistic overall than many as we head into the new year.

Although there may be some bumps and bruises in the overall economy, I don’t think it will be enough to derail the momentum in the industrial sector.

Retail will continue to sort things out, but we are a nation that loves to shop. I expect the biggest newsmaker to be the office sector, as tenants actually look to start taking more space, not less, which will lead to a strong year. But, as always, we’ll just have to wait and see if the commercial real estate “chocolate splatter” is sweeter or saltier in 2026. P Alec Pacella, CCIM, president at NAI Pleasant Valley, can be reached by phone at 216-4550925 or by email at apacella@naipvc.com. You can connect with him at www.linkedin.com/in/ alecpacellaccim or subscribe to his youtube channel; What I C at PVC. www.propertiesmag.com 43

2025

FINANCIAL REVIEW & FORECAST

2026

NAIOP NEWS Commercial real estate happenings

CRE Challenges + Opportunities in Northeast Ohio

A

s I step into the role of president of NAIOP Northern Ohio for 2026, I am both honored and mindful of the responsibility to lead during a time of significant transition and complexity in our commercial real estate (CRE) market.

CHARLIE FILISKO

The landscape we face this year is shaped by a mix of promising opportunities and persistent challenges that demand resilience, strategic foresight and collaboration. The Northeast Ohio CRE market has demonstrated remarkable adaptability over recent years, weathering economic fluctuations, demographic shifts and evolving market dynamics. As the new year begins, the outlook remains cautiously optimistic, but it is essential to recognize the risks that could temper growth and require prudent navigation.

Economic + market realities

The CRE market in Northeast Ohio is entering 2026 with a strong outlook.

Recent adjustments in interest rates have improved access to capital, encouraging investment and development activity across multiple sectors. Ohio’s job market remains stable and is forecasted to add approximately 400,000 new jobs in 2025, with growth expected to accelerate in

2026. This steady employment expansion supports demand for commercial spaces, multifamily housing and industrial facilities, reinforcing the region’s role as a vital economic engine.

These positive economic indicators underscore the importance of CRE as a cornerstone of local and national prosperity. Our industry provides the physical infrastructure that enables businesses to innovate, grow and serve their communities. As companies continue to adapt to evolving market conditions, the demand for flexible, well-located and thoughtfully designed spaces remains strong.

Demographics + market demand

Demographic shifts are playing a pivotal role in shaping real estate demand throughout Northeast Ohio. The region’s aging population is influencing housing preferences, with increased interest in downsized, accessible living options that accommodate changing lifestyles.

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At the same time, Cleveland continues experiencing a “boomerang migration” trend, where some former residents are returning to their hometown, revitalizing neighborhoods and contributing to a renewed vibrancy in urban living.

Millennials continue to be a driving force in the market, attracted by Northeast Ohio’s affordability, walkable neighborhoods and growing amenities. This influx supports demand for mixed-use developments and urban residential projects that blend lifestyle and convenience.

Beyond Cleveland, surrounding counties such as Lorain are experiencing notable population growth, expanding the geographic footprint of opportunity. Understanding these demographic nuances allows developers and investors to align their projects with the evolving needs of the market, ensuring relevance and long-term success.

Major development projects

Downtown Cleveland remains a focal point of transformation, with over $1 billion in active development projects underway. These initiatives are reshaping the city’s skyline and urban fabric, creating vibrant spaces that attract residents, businesses and visitors alike.

Among the most significant projects underway are: The Rose Building: A historic renovation of the Rose Building (2060 E. 9th St.) will introduce a boutique hotel, apartments and retail space, blending preservation with modern amenities.

Residences at 700 Prospect: An adaptive reuse project underway is converting the historic structure into 120 new apartments, contributing to downtown’s growing residential base.

Warner & Swasey Building: A mixed-use redevelopment of the Warner & Swasey Building (5701 Carnegie Ave.) is scheduled to begin construction in early 2026, adding commercial and residential space to the urban core.

AC Hotel: Construction of an AC Hotel

by Marriott (629 Euclid Ave.) is set to

start early this year, further expanding hospitality options downtown.

Industrial demand

Industrial construction is also thriving, reflecting Northeast Ohio’s strategic position as a logistics and distribution hub. The demand for modern industrial facilities continues to drive new develop-

The CRE market in Northeast Ohio is entering 2026 with a strong outlook.

Recent adjustments in interest rates have improved access to capital, encouraging investment and development activity across multiple sectors. ment, supporting regional supply chains and economic growth.

Collaboration + advocacy

NAIOP Northern Ohio remains steadfast in its commitment to fostering collaboration among developers, investors, public officials and community stakeholders. Our advocacy efforts focus on supporting critical infrastructure investments, streamlining permitting processes

and addressing workforce development challenges that impact the CRE industry.

By working together, we can create an environment that encourages innovation, attracts capital and enhances the quality of life for all who live and work in Northeast Ohio. Our collective efforts will ensure that the region remains competitive and continues to thrive in an increasingly dynamic economic landscape.

As we look ahead, the Northeast Ohio commercial real estate market stands poised for continued success.

The combination of strong economic fundamentals, demographic momentum and transformative development projects positions our region for a dynamic and prosperous year.

It is a privilege to lead NAIOP Northern Ohio during this exciting time and I look forward to partnering with our members and stakeholders to build a thriving, resilient and forward-thinking commercial real estate community.

Together, we will continue to shape a future that supports growth, innovation and opportunity for Northeast Ohio. P Charlie Filisko is 2026 president of NAIOP Northern Ohio. Visit NAIOP Northern Ohio online at www.naiopnorthernohio.com.

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2025

FINANCIAL REVIEW & FORECAST

2026

LEGAL PERSPECTIVES Navigating property laws & regulations

Ohio Property Tax Legislation Updates

P

roperty taxes are now amongst one of the hottest topics in the Ohio State Legislature. The legislature has been exploring property tax reforms in recent years after seeing a rapid rise in criticism from constituents who have continually been faced with increasing property taxes.

PHIL BRUSK

JASON LINDHOLM

The legislature’s reform efforts kicked into high gear in 2025 largely as a response to a citizen-led ballot initiative to place a constitutional amendment banning property taxes on real estate on the November 2026 ballot. The citizen-led initiative is currently in the process of gathering signatures. Ohio law requires approximately 415,000 valid signatures from at least 44 out of the 88 counties in the state for a voter initiative to be placed on a ballot.

Many of the current initiatives and reforms proposed and passed by the Legislature are geared towards relief for residential homeowners. Commercial property owners may see some benefits too.

Legislation passed for signature, veto or automatic enactment

At the time of writing this article, four bills were passed in late November

46

2025. Each had been sent to the governor for signature or veto, with the bills automatically passing if the governor takes no action within 30 days of passage by the legislature.

House Bill 129 House Bill 129 makes changes to Ohio’s school funding and property tax framework by allowing school districts to count certain additional tax levies, such as emergency levies, towards the 20-mill floor, which is the minimum amount that school districts can collect under Ohio’s property tax system. Because of the framework of the current system, when a district is subject to the floor and values rise significantly, the protections afforded by the tax reduction factor are not triggered, which results in large property tax jumps.

This bill will only affect property owners in school districts that are at the

Properties | January 2026

20-mill floor. Most urban and suburban districts are above that floor.

House Bill 186 This bill is another effort to alleviate sharp increases in value in a short amount of time. In also addressing the 20-mill floor issue, House Bill 186 stops these increases by limiting them to the rate of inflation over the prior three years.

Again, this applies to properties subject to the 20-mill floor, and not for most of those locations in urban and suburban areas. If the bill passes, taxpayers will begin to receive relief with a credit to their second-half 2025 property tax bills due in the early summer 2026 timeframe.

A late addition to House Bill 186 would also materially assist residential taxpayers.

This includes the expansion of the owneroccupancy credit, which is currently at

power. Given the discretion afforded by the bill to counties, it remains to be seen which counties will be active in reducing rates using the power of this bill, and those that will sit on the sidelines.

House Bill 335 Properties in Ohio have historically been charged a 10-mill floor across the

board. This amount is applied no matter what levies have been passed. This has been a large component in homeowners’ property taxes increasing as property values increase, and is not subject to voter approval.

This bill limits the increase that can be received in tax revenue through the 10-mill floor, by putting a ceiling on

The [Ohio State Legislature’s] reform efforts kicked into high gear in 2025 largely as a response to a citizen-led ballot initiative to place a constitutional amendment banning property taxes on real estate on the November 2026 ballot.

2.5%. The change would expand the credit to 15.38% over four years, with payment for the change addressed by phasing out the non-business credit, which is presently 10%. Notably, most commercial properties do not receive the non-business credit, but certain rental properties with less than four units would be affected.

House Bill 309 House Bill 309 allows a county budget commission to reduce voted levies that they deem unnecessary or excessive. The budget commission is comprised of the county auditor, treasurer and prosecutor.

Some counties throughout the state have already engaged in this practice, while others had not because they were not certain of their legal authority to do so. This bill codifies the ability for budget commissions to exercise this www.propertiesmag.com 47

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related increases based on the rate of inflation. The practical effect will not be uniform across the state, as it will depend on if a property is located in a county with fast or slow value increases.

Properties in counties that see quickly rising values will see the most benefit, while those in counties where values rise more slowly will see less of an impact.

Legislation proposed by the Legislature and other groups

2025 was a very active year for the Ohio Legislature. While this article focuses on changes that deal primarily with tax rates and other technical items, the legislature has also recently passed

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The legislature has also recently passed a standardized formula for valuing low-income housing properties, are looking at fixes to issues that arose after the passage of House Bill 126, and are further looking at other changes to the appeal system for those that disagree with their property values. a standardized formula for valuing lowincome housing properties, are looking at fixes to issues that arose after the passage of House Bill 126, and are further looking at other changes to the appeal system for those who disagree with their property values.

As the Ohio Legislature continues to work on proposals to address property tax issues facing our state, property owners should work with tax counsel that are able to understand the ongoing changes as well as their impact on property taxes going forward. P Jason Lindholm is a partner in the law firm of Siegel Jennings Co. LPA, and directs the Columbus, Ohio office. He can be reached at jlindholm@ siegeltax.com. Phil Brusk is an associate attorney in the law firm of Siegel Jennings Co. L.P.A. He can be reached at pbrusk@siegeltax.com.

Properties | January 2026

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2025

FINANCIAL REVIEW & FORECAST

2026

ACAR CORNER Issues in the real estate industry

NAR Expects Home Sales to Jump 14% Nationally

E JEANNET WRIGHT

xisting-home sales are projected to rise by around 14% nationally in 2026, according to National Association of Realtors Chief Economist Lawrence Yun. Yun delivered his 2026 housing outlook recently during the Residential Economic Issues and Trends Forum at NAR NXT, The Realtor Experience in Houston, Texas. Yun notes the expected rebound reflects easing mortgage rates, continued job gains and improving market stability after several challenging years. Home prices are forecast to increase by 4% this year, supported by steady demand and persistent supply shortages.

“2026 is really the year that we will see a measurable increase in sales,” Yun says. “Home prices nationwide are in no danger of declining.”

Mortgage rates are projected to decline modestly, averaging around 6% this year.

Yun emphasizes that while rates are influenced by more than Federal Reserve decisions alone, broader economic fac-

tors are contributing to gradually lower borrowing costs.

“As we go into [the new year], the mortgage rate will be a little bit better,” Yun says. “It’s not going to be a big decline, but it will be a modest decline that will improve affordability.”

Also at NAR NEXT, The Realtor Experience, Jessica Lautz, NAR deputy

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chief economist and vice president of research, presented insights from the newly released 2025 Profile of Home Buyers and Sellers, highlighting how shifting demographics are reshaping today’s housing market.

Lautz notes that the typical age of a home buyer today is 59 and the typical age of a repeat buyer is 62. She also explains that the number one reason people move today is because they want to be closer to friends and family.

“I call this the grandbaby effect,” Lautz explains. “This is a different type of buyer.”

In contrast, first-time buyers continue to face steep challenges, with the share of first-time buyers hitting an all-time

First-time buyers continue to face steep challenges, with the share of first-time buyers hitting an alltime low of 21% and the median first-time buyer age reaching 40. low of 21% and the median first-time buyer age reaching 40.

“The biggest struggle first-time buyers have is finding an affordable property, and many of them struggle to save for a down payment,” says Lautz. “The biggest source of pain that they are citing is high rent and student loan debt.”

Despite the affordability challenges, use of real estate agents remains strong among both buyers and sellers. Lautz says that 88% of buyers and 91% of sellers used an agent or broker in their most recent transaction.

Lautz cites the value agents provide in “pricing the home competitively in a changing market, marketing that home, and finding a qualified buyer.” P

Jeannet Wright (Berkshire Hathaway HomeServices Professional Realty) is 2026 president of the Akron Cleveland Association of Realtors (ACAR). For more information, visit www.akronclevelandrealtors.com.

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2025

FINANCIAL REVIEW & FORECAST

2026

Don’t Let Your Legacy Go Off-Market High-stakes planning for real estate leaders

By Jennifer Comella CBIZ

E

very real estate firm risks losing clients, revenue and hard-earned value without a clear succession plan. From residential sales to commercial property management and development, proactive leadership planning preserves your company’s legacy and growth potential. For owners considering retirement or a new venture, the question of who takes the reins can’t be ignored.

Learn how your company can confidently carry out succession planning.

Strategies for real estate succession

Real estate firms face unique succession challenges. Much of their value depends on client relationships, team expertise and institutional knowledge — not just assets. Without a thoughtful transition plan, leadership changes can disrupt operations and erode trust.

The stakes are high. According to the Exit Planning Institute’s 2025 National State of Owner Readiness Report, 75% of owners plan to exit their business within the next decade.

Yet many delay planning due to daily demands. Firms that wait too long often lose clients, revenue and longterm value.

To secure your company’s future, focus on these critical areas before implementing a succession plan:

ing and emotional intelligence. Offer high-potential individuals opportunities for cross-functional experiences, leadership development and mentoring.

Clarify your vision

Strengthen governance + structure

Start by defining what a successful succession entails. Will your business stay private or transition through a sale, merger or employee ownership plan?

Identify potential successors – family members, internal executives or outside candidates – and establish a timeline for transferring ownership and leadership. A clear vision aligns stakeholders, supports decision-making and avoids last-minute surprises.

Transparent governance helps reduce risk. Review decision-making authority among ownership, boards and management teams. Update operating agreements, buy-sell contracts and compensation plans to reflect future leadership. Advisory boards or committees can support new leaders and ensure accountability, helping minimize conflict and reassure stakeholders.

Develop future leaders

Ownership changes affect finances, taxes and access to capital. Obtain an objective business valuation and explore transfer options, such as sales, gradual buy-ins, gifting or hybrid

People, not processes, determine success in succession planning. Assess internal candidates based on technical skills, leadership ability, strategic think52

Address financial + tax considerations

strategies. Modeling tax effects for current owners and successors helps prevent surprises.

Advance planning also supports financing strategies, including debt, earn-outs or external investment, reducing liquidity risk during the transition.

Protect knowledge + relationships

Institutional knowledge and client relationships are invaluable. Outgoing leaders should document key processes, pipelines and client preferences.

Introduce successors to clients, investors and partners through joint meetings and phased involvement. Careful knowledge transfer protects revenue, preserves trust and minimizes disruption.

Communicate effectively

Clear communication helps keep succession plans on schedule. Create a timeline for sharing information Properties | January 2026

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with employees, clients and partners.

Transparent messaging minimizes rumors, supports retention and builds confidence throughout the transition.

Common barriers to a successful succession

Even carefully planned strategies can encounter obstacles, such as:

Risk management and insurance: Ensure coverage matches the firm’s evolving structure.

Succession planning in real estate carries high stakes. Firms that act early gain flexibility, protect their culture and position the next generation of leaders for success, while those that delay

risk disruption. By acting proactively, real estate companies can transition with confidence and ensure the business they’ve built endures well beyond a change in leadership. P Jennifer Comella (jennifer.comella@cbiz.com) is senior manager, learning and development with CBIZ.

Emotional attachment: Founders may struggle to let go or trust new leadership. Address this with mentoring and phased transitions.

Unprepared successors: Without intentional development, internal candidates might not be ready. Interim roles help assess readiness.

EA Group can take the fear out of unforeseen conditions that cause costly delays and keep your project running smoothly.

Planning gaps: Daily demands often delay succession efforts. Assign clear ownership and deadlines to maintain momentum.

Financial hurdles: Asset-rich companies may face financing challenges. Early modeling helps reduce risk.

Don’t be afraid of the

Communication missteps: Unclear communication can lead to rumors, turnover or client loss. A strategic plan helps maintain confidence.

around the corner

environmental emergencies that may be lurking at your site.

Cultural misalignment: New leaders may hold different values or leadership styles. Reinforcing core culture helps support continuity.

Additional considerations for a smooth transition Legal and compliance: Update filings, licenses and regulatory obligations.

Diversity and inclusion: Broaden candidate pools to strengthen leadership and foster innovation.

Third-party advisors: Engage legal, financial, human resources and transition experts for objectivity.

Market conditions: Factor in property values, investment cycles and timing.

Technology and data: Document critical systems and processes.

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www.propertiesmag.com 55

2025

FINANCIAL REVIEW & FORECAST

2026

National Construction Outlook

Dodge forecasts uneven construction performance in 2026 Provided by Dodge Construction Network

A

fter posting healthy growth in 2024, the U.S. economy markedly weakened throughout 2025. Consumer spending was stagnant, housing sales slowed considerably and the job market continued to weaken. Risks remain elevated to the downside for the construction industry nationally in 2026, although a few bright spots – such as data center and power construction, as well as high-value megaprojects – will allow the sector to remain afloat.

After expanding by 6.1%, the total dollar value of construction starts remained flat for 2025, down 0.35% to $1.24 trillion. When removing inflation, however, real activity declined by 0.9%. Nonresidential starts were expected to grow by 3.7% for 2025 and 1.2% in 2026, but that’s largely driven by strength in data center activity and megaproject construction. In real terms, nonresidential construction declined by 5.7% in 2025, but should expand by 2.3% in 2026. Finally, residential construction declined by 0.8% in unit terms, following a marked slowdown in single-family construction, offset by steady gains on the multifamily side.

Economic policy uncertainty dominated the bulk of 2025 and has blunted

the impact of large government investments, including the Infrastructure Investment and Jobs Act (IIJA) and the CHIPS Act, which promoted substantial growth in construction. The process for establishing new trade deals has also been rocky, with tariffs frequently being hiked and scaled back. Businesses, in aggregate, have been cautious about taking on new

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investments and overextending their activities. As market participants and consumers get used to the heightened levels of uncertainty, they will become more active, however higher borrowing costs through risk premiums will rise, making investment more challenging.

Dodge assumes the effective tariff rate will peak in 2025-Q4 at 15% and that it will remain elevated for longer than previously expected. The effective tariff rate will remain at an average of 15% through 2026, declining to roughly 8% by 2030. The extended timeline for normalization of tariffs has led to some sector revisions, yielding a weaker overall construction forecast.

The One Big Beautiful Bill Act (OBBBA) will provide a very modest short-term economic boost while creating significant long-term economic challenges due to higher deficits and debt.

There are some potential upsides for the construction industry, but the degree to which the bill will be stimulative remains unclear. In addition, the full impact of the bill on the construction industry will not be felt until 2027 when the changes to qualified opportunity zones go into effect.

The bill’s most concerning economic aspect is its massive fiscal cost and distributional effects that could severely damage the economy’s future. The distributional impact is particularly troubling, as the Yale Budget Lab estimates the top income decile will gain 2% in after-tax income (about $12,000 annually) while the lowest earners will lose more than 3.5% (about $1,000 annually). This will exacerbate income and wealth inequality that has been increasing since the 1980s, likely trickling into the housing market Properties | January 2026

by pricing out middle- and lower-income buyers and decreasing demand for new single-family housing. The low-income housing tax credit, however, may provide some offset.

The largest direct impact on the construction industry comes through the massive increase to the Immigration and Customs Enforcement agency (ICE), which will lead to large volumes of deportations. While this does impact labor supply, it has a larger impact on housing demand through household formation. We anticipate fewer households in subsequent quarters and therefore need to scale back the number of housing units added to the stock.

For now, Dodge continues to take a cautious approach to adjusting its forecast. As the economy recalibrates around Trump administration policies, growth should begin to slowly reaccelerate in 2026, returning to potential growth by 2027.

Residential construction

Single-family construction continues to face hurdles. While mortgage rates ticked down to 6.35% in September, the elevated risk of recession and ongoing economic uncertainty is keeping homebuyers on the sidelines. Slower demand has contributed to home price declines, driving marginally better affordability that could spur some buying activity on the margins. Mortgage rates are unlikely to drop below 6% in the near term and will keep many buyers from entering the market.

Single-family housing will drop 6.1% to 895,000 units in 2025 and another 3.5% in 2026. Multifamily construction, on the other hand, is steadfastly growing. As buyers continue to be priced out of the single-family market, demand on the rental side has been sustained – or buyers have opted to purchase more affordable townhouses or condominiums. According to U.S. Census data, the U.S. rental vacancy rate was 7.1% in 2025-Q3, reflecting relatively balanced conditions. Multifamily completions, however, peaked in the first quarter of 2024 and have largely been pulling back since. In response, multifamily planning

activity has been steadily rising over the last year.

Nonresidential construction

Rising uncertainty around tariffs is causing many business owners and developers to delay project decisions, softening overall construction activity. It took a median of 19 months for a nonresidential project

to move from planning to groundbreaking in 2025 – up from 16 months in all of 2024. As a result, total nonresidential construction pulled back 2.4% in 2025 from a square footage perspective.

Meanwhile, the dollar value expanded by 3.7% over the year – alongside continued strength in data center construction and groundbreakings on high-value mega-

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2025

FINANCIAL REVIEW & FORECAST

2026 projects in other select sectors. Higher materials price assumptions and more construction activity on the alteration side of the market will also prop up the dollar value forecast.

Commercial starts grew 13.5% in 2025 nationally, bolstered by growth in data center construction and parking garages – linked to strong mixed-use apartment construction. Retail stores, warehouses and hotels are heavily influenced by a pullback in consumer spending, more selective lending standards and higher materials costs. These sectors, therefore, face the most near-term risk. Growth in commercial construction will remain muted in 2026, expanding 2.2% After a slowdown in 2025, travel demand is set to normalize this year and drive an acceleration in hotel activity – especially on the luxury-end of the market. Warehouse construction will also accelerate after three years of declining activity.

Institutional starts will face a marked slowdown. Much of this weakness is

being driven by a pullback in education construction, which is expected to decline 12.2% in square footage terms this year. Risks around federal funding, increased endowment taxes on higher education, and weaker demographic pro-

Commercial starts grew 13.5% in 2025 nationally, bolstered by growth in data center construction and parking garages – linked to strong mixed-use apartment construction. jections within K-12 schools are fueling this near-term weakness. Conversely, new hospital construction, with increasingly high costs per square foot, will bolster strength in healthcare construction over the next two years. In aggregate, institutional starts decreased 1.5% to $224 billion in 2025, but are expected to expand by 6.2% in 2026.

Manufacturing starts have been on a rollercoaster ride in the past year.

Changing tariff policies elevated risks around higher input costs, supply chain issues and uncertainty around long-term pricing, creating a pronounced pullback in the first quarter of 2025. A significant rebound, however, took place over the second quarter (+295% in dollar value) alongside the start of multi-billion-dollar semiconductor plants and petrochemical refineries. But, as tariffs ratcheted up once again, starts declined by 71% in the third quarter. This sector is particularly vulnerable to uncertain trade conditions, as well as shortages in labor.

Manufacturing starts are expected to reaccelerate by 2028. P Dodge is North America’s leading provider of data and analytics for the construction industry.

For more insights on the construction industry and access to customized forecasting and analytics products, visit Dodge Construction Network online at www.construction.com.

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CONSTRUCTION PROGRESS REPORT Updated info on important projects in the region, provided courtesy of ConstructionWire (www.constructionwire.com) Project: #3322278 SUMMIT CONNECT PROJECT TYPE/SIZE: Data Centers (25,00049,999 sq-ft) CONSTRUCTION TYPE: New ESTIMATED VALUE: $25-$100 million SECTOR: Private LOCATION: Summit County Akron, OH 44301 DETAILS: Plans call for the construction of a 125-mile fiber-optic ring and a data center. The first phase of the project are the fiber ring and data center, and the second phase will be the expansion of the project to residents.

Estimated Schedule (as of 10/20/2025) STAGE: Construction CONSTRUCTION START: 4/2025 CONSTRUCTION END: 9/2026 BID DUE DATE: N/A ARCHITECT: AVID Architects Contact: Bobby Johnston, Project Architect 3660 Embassy Pkwy.

Akron, OH 44333 P: 330-666-5770 OWNER: FairlawnGig 3300 Fairlawn Service Dr. Fairlawn, OH 44333 P: 330-668-3300 OWNER: Summit County Contact: Brian Nelsen, Chief of Staff bnelsen@summitoh.net 175 S. Main St. Akron, OH 44308 P: 330-643-2510 ARCHITECT: The Thrasher Group Contact: Brad Olinger, Regional Manager 400 3rd St. SE Ste. 309 Canton, OK 44702 P: 330-451-2042 GC: Henkels & McCoy Inc. 985 Jolly Rd. Blue Bell, PA 19422 P: 215-283-7600 Project: #3448944 OHIO VETERANS HOME EXPANSION PROJECT TYPE/SIZE: Multifamily (101-150 units), Medical, Social CONSTRUCTION TYPE: New ESTIMATED VALUE: $90 million SECTOR: Public LOCATION: 3416 Columbus Ave. Sandusky, OH 44870 DETAILS: Plans call for the construction of 162,500 square feet of new housing facilities at Ohio Veterans Homes. The expansion will be split into four neighborhoods and will also include a community center.

Estimated Schedule (as of 12/17/2025) 60

STAGE: Starts in 1-3 months CONSTRUCTION START: 1/2026 CONSTRUCTION END: Q4/2027 BID DUE DATE: N/A OWNER: State of Ohio Contact: Todd Hager, Senior Project Administrator todd.hager@ofcc.ohio.gov 8995 E. Main St. Reynoldsburg, OH 43068 Department of Agriculture Headquarters P: 614-728-6200 GC: Turner Construction Company 1422 Euclid Ave., Ste. 1400 Cleveland, OH 44115 P: 216-522-1180 Project: #3852177 MEDINA COUNTRY CLUB COMMERCIAL BUILDING ADDITIONAL PROJECT TYPE/SIZE: Retail (25,000-49,999 sq-ft) CONSTRUCTION TYPE: Addition/Expansion ESTIMATED VALUE: $18 million SECTOR: Private LOCATION: 5588 Wedgewood Rd. Medina, OH 44256 DETAILS: Plans call for the construction of an additional commercial building at Medina Country Club.

Estimated Schedule (as of 12/5/2025) STAGE: Early Construction CONSTRUCTION START: 11/2025 CONSTRUCTION END: Q4/2026 BID DUE DATE: N/A GC: The Krill Co. 1275 Main Ave. Cleveland, OH 44113 P: 216-357-4777 OWNER: Union Home Mortgage 8241 Dow Circle West Strongsville, OH 44136 P: 440-234-4300 Project: #3854420 SILVER BIRCH OF CANTON PROJECT TYPE/SIZE: Multifamily (120 units), Social (< 10,000 sq-ft), Athletic Facilities (< 10,000 sq-ft), Libraries (< 10,000 sq-ft), Medical CONSTRUCTION TYPE: New ESTIMATED VALUE: $18.2 million SECTOR: Private LOCATION: Higbee Ave. NW & Munson St. NW Jackson Township, OH 44718 DETAILS: Plans call for the construction of a 90,138-square-foot, three-story affordable assisted living facility on 6.3 acres with 80 studio apartments and 40 one-bedroom units. Amenities will include walking paths, gazebo and a covered pavilion, a

community room, game room, indoor/outdoor dining, physical therapy, library and a fitness room.

Estimated Schedule (as of 12/10/2025) STAGE: Groundbreaking CONSTRUCTION START: 12/2025 CONSTRUCTION END: 12/2026 BID DUE DATE: N/A DEVELOPER, OWNER: Vermilion Development 121 W. Wacker Dr., Ste. 400 Chicago, IL 60601 P: 312-488-1918 GC: The Douglas Company 1716 Perrysburg Holland Rd. Holland, OH 43528 P: 419-865-8600 ARCHITECT: WJW Architects 401 W. Superior St., 400 Chicago, IL 60654 P: 312-642-5587 TENANT: Silver Birch Living 121 W. Wacker Dr., Ste. 400 Chicago, IL 60601 P: 312-846-1607 Project: #3838935 ASPIRE AT SHEPHERDS GLEN PROJECT TYPE/SIZE: Multifamily (39 units) CONSTRUCTION TYPE: New ESTIMATED VALUE: $11 million SECTOR: Private LOCATION: 5058 Shepherds Gln. Willoughby, OH 44094 DETAILS: Plans call for the construction of a residential development with 39 attached two-story villa units over 11 buildings. Units will range from 1,940 -1,975 square feet.

Estimated Schedule (as of 10/21/2025) STAGE: Construction CONSTRUCTION START: 2/2025 CONSTRUCTION END: Q4/2026 BID DUE DATE: N/A GC: K. Hovnanian Homes 6830 OH-37 Sunbury, OH 43074 P: 614-426-0345 Construction project reports are provided with permission through ConstructionWire, courtesy of BuildCentral (www.buildcentral.com).

BuildCentral specializes in planned construction project leads and location analytics for CRE, hotel, multi-family/single-family, medical, mining & energy, and retail construction spaces. Properties Magazine makes no warranty of any kind for this information, express or implied, and is not responsible for any omissions or inaccuracies. To notify Properties of any reporting errors, we encourage you to email cpr@propertiesmag.com.

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