Cleveland Office Market
The Cleveland office market accrued 131,373 SF of negative absorption in the second quarter of 2025, breaking its streak of four quarters in a row in the positive. The negative absorption caused the quarterly overall total vacancy rate to increase to 23.1%, up 30 basis points from the prior quarter. Total second quarter 2025 leasing activity for non-owner-occupied office buildings measuring 10,000 SF and greater in the Cleveland MSA was 213,600 SF, the second lowest quarterly total in the last 16 years for the second quarter in a row, behind the fourth quarter of 2021’s tally of 193,150 SF. The Cleveland office market’s quarterly total overall average asking rental rate decreased by $0.12/SF from the first quarter of 2025 to $20.99/SF in the second quarter of 2025. As a result, the 2025 year-to-date average asking rent total decreased to $21.05/SF from $21.11/SF, and the year-over-year asking rent growth rate dipped to 2.6% from 2.9%.
Download Cleveland Office Market Report 2Q25Cleveland Industrial Market
The Cleveland industrial market posted a steep negative absorption of 2.8 million SF in the second quarter of 2025—the lowest quarterly result in recent history, triggered by a series of high-profile closures and move-outs. As a direct result, the industrial vacancy rate increased by 100 basis points to 5.2% for the quarter. Despite this uptick, the year-to-date vacancy rate remains relatively healthy at 4.7%, still well below the long-term average of 7.4%. Demand for industrial space in Cleveland recovered slightly after hitting a historic low earlier in the year. Quarterly leasing volume reached 2.0 million SF, reflecting renewed activity, though it was not enough to offset significant move-outs that weighed on overall absorption. The market’s industrial direct average asking rent contracted year-over-year in the second quarter of 2025 by negative 3.9%, down from 2.8% in the first quarter. The second quarter saw a direct average asking rent of $5.88/SF, which was down by $0.14/SF from the previous quarter’s total.
Download Cleveland Industrial Market Report 2Q25