Cleveland Office Market
The Greater Cleveland office market gave back 58,688 SF in negative net absorption in the second quarter of 2023. This caused the vacancy rate to increase by 40 basis points to 21.9% in the second quarter of 2023 from 21.5% in the first quarter of 2023. Total leasing activity in the Cleveland market has trended down since 2018, with the exception of 2022, a year that included the 1.0-million SF sale-leaseback in the fourth quarter of 2022 by Sherwin-Williams’s under-construction headquarters that skewed that year’s numbers. The Cleveland office market’s overall average asking rental rate increased by $0.17/SF from the first quarter of 2023 to $18.99/SF, tied for the highest mark in at least 20 years but still not demonstrating a significant amount of growth over time. The overall market’s Class A average asking rental rate of $22.53/SF was an increase of $0.48/SF from the first quarter of 2023, and the Class B average asking rental rate decreased by $0.38/SF to $16.44/SF.
Download Cleveland Office Market Report 2Q23Cleveland Industrial Market
The Cleveland market tallied 462,024 SF in positive absorption. The industrial vacancy rate decreased to 4.2% in the second quarter of 2023 from 4.3% in the first quarter of 2023. Year to date, the market stands at 4.2%, up 10 basis points from the overall 4.1% vacancy in 2022. Demand for industrial space decelerated to its lowest level since the first quarter of 2019, though the market is still healthy. Total leasing activity measured approximately 1.2 million SF.