Downtown Akron’s Development Momentum: Strategic Conversions Drive Urban Growth

Written by:

Steve Marcinuk

Date:

23 Dec 2025

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Downtown Akron is in the midst of a development surge, with 700 to 800 residential units in various stages of planning and construction across six major projects. City leaders are aiming to add 1,200 new downtown housing units by 2030, a target that, if met, would significantly reshape the urban core.

Christopher Hardesty, Executive Director of the Downtown Akron Development Corporation, is leading these efforts with a focus on adaptive reuse – converting historic commercial buildings into modern residential and mixed-use spaces. This strategy is central to Akron’s approach, leveraging the city’s architectural legacy while addressing contemporary housing needs.

The Economics of Adaptive Reuse

The financial foundation of Akron’s own town development relies on Ohio’s historic tax credit program, which is essential for most adaptive reuse projects. “We get about 40% of the capital stack from those sources,” Hardesty says, referring to state and federal historic tax credits. However, these credits do not translate directly into cash. “Usually $5 million means about $4.25 or $4 million, around 80 to 85% of the total tax credit, because the company buying it wants a cash advantage,” he explains. Developers must syndicate these credits to institutional buyers, reducing their immediate value.

The typical capital stack for a downtown project also includes brownfield grants for environmental remediation, tax abatement programs, and traditional construction loans. Even with these sources, funding gaps are common. “We have a $40 million project, and we’re maybe sitting at $38.5 million or $38 million of financed project, and then we have to go back and look at what more we can do,” Hardesty adds.

This multi-layered approach to financing is necessary to make adaptive reuse projects feasible, especially as construction costs and interest rates remain elevated.

Market Demand and Pricing Strategy

Downtown Akron’s residential market is stabilizing at rents averaging $2 to $2.20 per square foot. Most apartments are priced between $1,000 and $2,000 per month, depending on size and layout. Studios and one-bedroom units are in the highest demand, while two-bedroom apartments attract fewer renters.

“We do really well here with one bedrooms and studios. We do less well with two bedrooms. It’s just the demographic we’re working with,” Hardesty observes. The strongest demand comes from two groups: young professionals seeking urban amenities and empty nesters looking for walkable downtown living.

While older residents with established incomes can afford market-rate units, younger professionals often find current rent levels challenging. “Some affordable components are coming into the market that will be more attractive to those younger folks that are maybe fresh out of college,” Hardesty says, highlighting the need for more accessible options.

This demographic mix presents both opportunities and hurdles for developers. Meeting the needs of younger renters while maintaining project viability will be a central test for the next wave of downtown housing.

The Retail Challenge

Attracting and sustaining retail businesses remains one of downtown Akron’s most significant hurdles. The departure of major office employers has sharply reduced daytime foot traffic, making it difficult to support a thriving retail corridor.

We’ve lost a lot of office employees in the last couple of years. We had a huge employer leave downtown and go to the suburbs, which was a significant blow to our daytime population,” Hardesty says. This decline in foot traffic creates a challenging environment for retail recruitment and retention.

Hardesty argues that simply filling vacant storefronts is not enough. “We can’t just put in 40 restaurants and expect them to be successful. They need foot traffic. So we need to do the right mix of retail that’s dependent on foot traffic, but also generates foot traffic.”” The development strategy targets businesses such as fitness centers and activity-based retailers that draw people downtown, helping build a self-sustaining retail ecosystem.

This approach requires careful curation and ongoing support to ensure that new businesses have the customer base they need to survive.

Financing Accessibility

Despite the complexity of assembling capital for historic conversions, Hardesty says construction financing remains attainable in Akron. All of our projects have a senior construction loan. We have some great banks in the area,” he notes. Some projects also utilize developer-owned capital firms for financing.

Akron’s relative affordability compared to other Ohio cities is a key factor. “”When you look at the cost of real estate in Cleveland or Columbus and you look at the cost here, we’re pretty affordable still,”” Hardesty says. Lower acquisition and construction costs make Akron more appealing to outside investors and developers, particularly as prices in larger cities rise.

This cost advantage, combined with available incentives, positions Akron as a strong candidate for additional investment in the coming years.

Strategic Support Through Knight Foundation

The Downtown Akron Development Corporation recently received a $1.5 million grant from the Knight Foundation, distributed over three years. The grant operates on a matching basis, requiring $2 of other funding for every $1 from the Knight Foundation.

“We can do a reimbursement grant for up to a third of project costs, up to $50,000″” for eligible projects over $150,000, Hardesty explains. The grant also funds market studies and strategic initiatives that inform development decisions, providing valuable data for both public and private stakeholders.

This support enhances the city’s ability to attract new investment and accelerates downtown revitalization.

Commercial Development Progress

While residential conversion dominates current development, commercial projects are beginning to show momentum. GPD, an engineering firm, recently announced a significant retention and expansion project that will keep 450 employees downtown and add hundreds more.

Current commercial interest is concentrated among professional services firms, including administrative, legal, accounting, and financial services. “Most of it’s administrative, legal, accounting, financial insurance,” Hardesty says, though he hopes to attract technology and other high-growth sectors in the future.

The retention and expansion of major employers is critical for increasing daytime activity and supporting both residential and retail growth.

Addressing Perception Challenges

Downtown Akron continues to struggle with negative perceptions about urban safety. Hardesty pushes back on these views: “I reject the narrative that downtown is dangerous. I’m here all the time. I don’t see where people think it’s dangerous.””

He points to the large crowds at downtown events as evidence that safety concerns are overstated. “If it were dangerous, we wouldn’t have over 100,000 people coming to events. Those people would not show up,” he says.

Changing these perceptions requires proactive communication. “We need to develop a communication plan where we’re talking about downtown and setting the narrative we want for ourselves, instead of letting other people set the narrative for us,” Hardesty explains.

Looking Forward

The following 12 to 24 months will be pivotal for maintaining downtown Akron’s development momentum. Success will depend on closing financing for current projects, starting construction, and increasing foot traffic to support retail businesses.

Hardesty’s’role centers on guiding developers through complex approval and financing processes, leveraging his experience in assembling capital stacks and negotiating incentives. While he cannot provide direct funding, his strategic support is essential for project success.

The stakes are high for Akron and the broader region. The most significant risk is failing at these conversions, because that would be detrimental to downtown Akron. If it’s bad for downtown, it’s bad for the city, and from a regional standpoint, it’s bad for Summit County,” Hardesty says.

Despite these risks, he remains confident in the city’s direction. “We’re at the bottom right now, so there’s only room for going up. There’s not really a risk I’m not willing to take at this point.””

For developers and investors, downtown Akron offers significant advantages. Commercial rents are about one-third of those in Cleveland, with ample parking and available space. “We’re business-friendly down here. We’ll make it work. We’d love to have the opportunity to get someone’s business here in downtown Akron,” Hardesty concludes.

With a combination of historic preservation incentives, affordable real estate, and strategic support, downtown Akron is positioning itself as a leading opportunity in Ohio’s secondary market urban development.