Cleveland Office Market Report

Suburban demand supports metro's national standing. Among major Midwest markets, Cleveland entered the second half of this year with the tightest vacancy rate. Conditions in areas outside of the core are to credit, as availability here fell 30 basis points year-over-year in the second quarter to 10.8 percent, the fourth-lowest suburban rate nationally. Recent performance in the suburbs was highlighted by companies absorbing over 1.1 million square feet on a net basis throughout 2021. Since, some space has come back to the market; however, companies in Cleveland have exhibited a historical preference for Class B/C floorplans in the suburbs. If this trend persists, these properties are poised to maintain tighter vacancy rates than their CBD counterparts.