Market Report

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.  

Real Trends

•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