Cleveland Industrial Figures Q4 2022

Market Summary

‒ Throughout 2022, the Industrial market experienced low vacancy, positive net absorption, and overall strong activity. Closing the year with 2.8% vacancy rate, down 20 basis points (bps) from Q3 2022, demand has been resilient in Cleveland. 

‒ New construction in the Cleveland market has decreased quarter-over-quarter, sitting at 947,527 sq. ft. in Q4 2022. Growing economic uncertainty, financing difficulties, and high supply costs are not only creating lengthier and harder to estimate timelines but causing the momentum of new construction to halt.

‒ Cleveland saw an increase in average asking lease rates from $5.22 to $5.52 quarter-over-quarter. Throughout the country, landlords are pushing for rent increases, and this is evident in the Cleveland market. Rents are also seen rising due to overall increases in project costs.

‒ Net absorption totaled 539,199 sq. ft. and was highly concentrated in the Southwest submarket.