Robust Demand Drives Vacancy to Record Lows
The overall market vacancy rate remained unchanged during the quarter at 4.4 percent and is 60 basis points lower year-over-year. All of the Cleveland and Akron area submarkets post single-digit vacancy rates, yet most new construction remains focused on build-to-suit options for end users of the facility. In the primary Cleveland submarkets, vacancies range from a low of 3.7 percent in the Southwest submarket to 8.4 percent in the Northeast submarket. The light industrial sector, which includes freestanding owner-occupied product, currently stands at 4.1 percent vacant with only 42 buildings larger than 50,000 square feet available. Additionally, there are only 19 warehouse/distribution spaces in excess of 100,000 square feet available, including three projects under construction.