Cleveland Office Figures Q1 2026

The Cleveland office market showed early signs of stabilization in Q1 2026, with net absorption returning to positive territory for the first time in a year. However, overall market conditions remain constrained, as incremental demand has not yet been sufficient to offset elevated vacancy levels. Net absorption totaled 44,000 sq. ft., reversing the net move-outs recorded in Q1 2025. Demand was highly concentrated in select suburban submarkets, particularly the Southwest and East corridors, while Downtown continued to experience net occupancy declines, reinforcing the market’s ongoing bifurcation. Overall vacancy increased 50 basis points to 20.2%, rising both quarter-over-quarter and year-over-year. While Class A vacancy remains below the broader market, vacancy increased across all asset classes, underscoring persistent structural oversupply. Asking rents remained effectively flat at $19.29 per sq. ft., reflecting limited landlord pricing power despite modest improvements in demand. New supply is no longer a near-term risk. Following the delivery of the Sherwin-Williams headquarters in late 2025, the office construction pipeline has contracted sharply, with only 56,000 sq. ft. under construction, all of which is fully pre-leased and expected to deliver in late 2026.