Cleveland’s big-box Class A vacancy rate dropped below 5.0% to 4.9% during the third quarter of 2013, Newmark Grubb Knight Frank (NGKF) revealed in its new research report on the industrial market. Big-box Class A buildings make up 5.0% of the total Cleveland industrial market yet accounted for nearly 21% of the year-to-date absorption.
“Demand remains very strong for big-box Class A space leading to one of the lowest vacancy rates in the country for this product type,” said Terry Coyne, NGKF executive managing director. “The demand for Class A big-box space in Cleveland mirrors national trends; the recovery started with the largest buildings and is working its way down to the smaller sizes. Demand has been driven by the reconfiguration of corporate and 3PL supply chains, a recovery in the manufacturing sector and global trade flows, and modest but steady consumer spending.”
Overall, the Cleveland industrial market performed admirably during the third quarter of 2013, despite the city leading the nation in job loss for most of the quarter. Companies such as King Nut and Pat Catan’s quickly occupied newly available space to leave the vacancy rate unchanged from the previous quarter at 9.0%.
The Southcentral, Southeast and Southwest submarkets outperformed all others in Cleveland, posting 73,808 square feet of positive absorption during the third quarter. Distribution-oriented users continued to drive demand, attracted to the highway access provided by the southern submarkets, as well as a concentration of modern distribution facilities. These factors are expected to keep vacancies low in coming quarters.
To access the full Cleveland industrial report, visit /research. To speak with a NGKF expert, please contact Mira Matic at email@example.com.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank (NGKF) is one of the world’s leading commercial real estate advisory firms. Together with its affiliates and London-based partner Knight Frank, NGKF employs more than 12,000 professionals, operating from more than 320 offices in established and emerging property markets on five continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. Its integrated services platform includes leasing advisory, global corporate services, investment sales and capital markets, consulting, program and project management, property and facilities management, and valuation services. A major force in the real estate marketplace, NGKF serves the local and global property requirements of tenants, landlords, investors and developers worldwide. For further information, visit www.ngkf.com.
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