Cleveland Office Market
The Cleveland office market posted 47,048 SF of negative net absorption in the third quarter of 2025—its second straight quarterly loss after four quarters of gains. Vacancy ticked up 10 basis points to 23.3% quarter over quarter. Year-to-date, the 2025 average vacancy is 23.1%, below 2024’s 23.4%. Third quarter leasing totaled 732,189 SF—a solid improvement over the first and second quarter and amongst the better third quarter returns in recent history. Against a 16-year annual average of 2.3 million SF, quarterly activity across 2024 and year-to-date 2025 has remained consistently below trend. The quarterly total overall average asking rental rate increased by $0.40/SF from the second quarter to $21.42/SF in the third quarter of 2025. As a result, the 2025 year-to-date average asking rent total ticked up by $0.14/SF to $21.19/SF from $21.05/SF, and the year-over-year asking rent growth rate was elevated to 3.3% from 2.6%.
Download Cleveland Office Market Report 3Q25Cleveland Industrial Market
The Cleveland industrial market posted negative absorption of 517,583 SF in the third quarter of 2025—the second largest negative number since the second quarter of 2021. As a result, the industrial vacancy rate increased by 30 basis points to 5.5% for the quarter. Despite the vacancy uptick and a fifth straight quarter of negative absorption, the year-to-date vacancy rate remains at 5.0%, still well below the long-term average of 7.4%. The market’s industrial direct average asking rent contracted year-over-year in the third quarter of 2025 by negative 3.9%, holding steady from the previous quarter, but coming in negative for the fourth quarter in a row. The third quarter saw a direct average asking rent of $5.95/SF, which was down by $0.06/SF from the previous quarter’s total. Sale-leasebacks have become increasingly more popular in the Cleveland industrial market in recent quarters, and the third quarter was no different for companies looking to convert their non-liquid asset into working capital without disrupting operations. A sale-leaseback of note in the Southeast submarket was TCP’s 154,000 SF transaction at 325 Campus Dr. in Aurora. Bright Leasing LLC purchased the property from the company for $9.8 million, or $63.64/SF in the beginning of September. Another sale-leaseback was Hyson Products selling its 10367 Brecksville Rd. facility in the South Central submarket to Royal Oak Realty Trust for $6.3 million, or $107.76/SF.
Download Cleveland Industrial Market Report 3Q25