Cleveland Industrial Figures Q1 2026

Market conditions improved in Q1 2026 as demand returned and new supply remained negligible. Net absorption turned positive after a year of contraction, with tenants absorbing 1.0 million square feet (sq. ft.), a reversal of approximately 1.2 million sq. ft. from the prior quarter. This demand recovery drove vacancy down 40 basis points (bps) quarter-over-quarter to 3.9%, although vacancy remains 40 bps above 2024 levels.

Availability followed a similar trajectory, declining 20 bps quarter‑over‑quarter as leasing activity accelerated, but remaining elevated on a year‑over‑year basis. Despite improved occupancy, asking rates softened modestly, declining 0.5% quarter-over-quarter and year-over-year to $5.49 per sq. ft., reflecting continued competition among landlords.

Development remains muted, with no new deliveries in Q1 2026 and just 124,000 sq. ft. under construction, underscoring a sharply reduced pipeline relative to historical norms. Over the past five years, vacancy has remained tightly constrained, fluctuating within a narrow 2.7%–4.3% range, reinforcing the Cleveland market’s long-term supply discipline.