Real Trends Q1 2022
Cleveland Metro Industrial Market Report: Q1 2022
The Cleveland industrial market remains tight, with low vacancy and rising rents.
The first quarter of 2022 brought much of the same for industrial real estate in greater Cleveland. Market rents and sale prices continued to rise, even a little faster than usual. Rents increased $0.16 from the end of 2021 to $5.57/ft, a 3% rise. Sale prices rose to $48.64/ft, a 3.8% increase from 4Q21.
The market absorbed 577k square feet in the first quarter, with net deliveries of 791k SF, with vacancy rates ticking down slightly to 4.2%. With vacancy remaining low, industrial space remains difficult to find, with few turn-key properties available.
•Rent escalators & inflation – As inflation continues to rise, landlords and tenants are more focused on escalator clauses
•Opportunity corridor – Development activity continues surrounding the opportunity corridor, with several large projects under development
•Supply chain constraints – Long construction timelines and shortages of products like commercial overhead doors make retrofitting space time-consuming and expensive
Supply and Demand