Cleveland Industrial Market Report

Small-bay demand gains traction despite broader slowdown. Leasing activity was subdued across Cleveland’s industrial market in the first half of 2025, placing modest upward pressure on vacancy. Demand for large-format space has softened amid ongoing tariff uncertainty, particularly among manufacturing users. Notably, submarkets near the waterfront have experienced weaker absorption. Limited new supply, however, should help contain vacancy risk this year. Greater clarity around trade policy may also help reignite big-box leasing in the second half of 2025. Meanwhile, tenant demand for spaces under 50,000 square feet has picked up modestly, contributing to tightening vacancy in the metro’s inner-ring suburbs. Centrally located areas such as Brooklyn and Bedford continue to attract smaller industrial users and last-mile distributors due to their proximity to major highways and population centers. Strengthened fundamentals in these submarkets should support firmer rent growth this year.