Cleveland Industrial Investment Forecast
Combination of Rising Rents and Nationally High Yields are Drawing Investors to the Major Great Lake Port City
Net absorption triples from last year as development tapers. Cleveland will continue to close in on a full job recovery this year bolstering retail sales. Consumer spending posted record numbers in 2021 fueling demand for distribution and warehouse space in the market. Access to several interstate highways as well as proximity to Akron and Toledo adds to Cleveland's distribution appeal. The growing need for industrial space is coinciding with a tapering in construction. The largest project underway this year is a 900000-square-foot tractor distribution center in Stark County near Akron which will generate an estimated 300 new jobs. Other notable arrivals include a warehouse in Warrensville Heights and another in Brooklyn Heights. The overall reduction in completions paired with high demand will tighten vacancy and apply continued upward momentum to rents. The metro's average asking rent has already climbed 15 percent over the past two years undoing the decline from 2017-2019 and will set a new high by the end of 2022.