Marcus & Millichap

Cleveland Industrial Investment Forecast

2019 Outlook

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Improving Economy Fosters More Spending; Private Investors Find Plenty of Options in Cleveland

Development maintains strong clip as builders focus on southeastern part of the metro. Surging job creation continues to boost economic growth in Cleveland, which in turn is increasing consumption. As a result, industrial development will remain elevated in Northeast Ohio this year as more than 1 million square feet of space is finalized for the fourth time in the past five years. The I-480 corridor between Oakwood and Twinsburg will receive much of the new space, potentially threatening the area’s already-heightened vacancy rate. Since 2014, this section has logged more than 3.5 million square feet of development, keeping rents well below the market average as supply outpaced demand. Conversely, several areas around the metro hold significantly low vacancy rates including neighborhoods around Buckeye-Shaker and University Circle. Here, elevated demand has propelled rents far above most other communities in the market as tenants vie for the limited available space with proximity to the lake in addition to nearby railroad access.

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