Northeast Ohio Industrial Market Reaches Record-Low Vacancy Rates

CLEVELAND – Northeast Ohio kicked off 2025 with some of the tightest industrial availability rates among major industrial markets in the country, creating challenges and opportunities for businesses seeking manufacturing and warehouse space.

Limited large-scale completions are keeping availability well below national benchmark, according to a new market report from CoStar. The extremely low vacancy rates reflect strong demand for industrial space in the region but are creating significant hurdles for companies looking to expand or relocate.

Competition Drives Up Prices

Industrial real estate vacancy ratings in Northeast Ohio are extremely low, with competition for industrial property incredibly high, says Ryan Curtin, an Associate at Cushman & Wakefield | CRESCO Real Estate.

There are spaces available, but many require additional investment to make them work. When it comes to land zoned for industrial that’s suitable for new construction, we’re seeing a drastic increase in pricing. It’s common for land to go for more than 20-30 percent over previous per acre pricing, Curtin explained.

The tight market conditions are forcing buyers and potential tenants to either get creative with their space requirements or seek professional help to navigate the limited options.

Manufacturing Drives Regional Economy

Manufacturing accounts for 20% of the region’s GDP and is a driving force in Northeast Ohio’s economy. The 14-county Northeast Ohio region is known for its powerful history of innovation and traditional manufacturing, having built on its strong manufacturing legacy to become a globally recognized center of advanced manufacturing.

The region has all the assets needed to develop, produce, and deliver products and services, including a talent pool of 1.8 million workers, a deep and diverse supply chain, and exceptional market access.

Strategic Advantages Remain Strong

Despite the challenges posed by limited inventory, Northeast Ohio continues to offer significant advantages for industrial businesses. Northeast Ohio’s superior interstate and highway infrastructure helps companies access key suppliers and customers throughout Ohio and in neighboring states.

The region also benefits from robust utility infrastructure, particularly power availability, which has become increasingly important as data center development grows across the country. Northeast Ohio is in a strong position relative to other Ohio markets when it comes to available power capacity.

Labor Market Provides Flexibility

In Cleveland and its first-ring suburbs, there is a readily available labor force with a range of skills and abilities to suit industrial, manufacturing, warehousing, storage and transportation. Different submarkets offer specialized talent pools – for example, areas like Brecksville have strong labor markets in management, professional services and research and development.

Solutions For Space-Starved Companies

Industrial businesses facing the tight market are exploring several strategies:

Incentive Programs: Companies should consider meeting with city and county officials to discuss real estate tax incentives and work with regional economic development partner Team NEO.

Brownfield Development: Businesses that can be more patient could utilize brownfield programs at sites that need cleanup and assessments, with funding available through the Ohio Brownfield Remediation Program and reclamation efforts through the Cuyahoga Land Reutilization Corp.

Creative Solutions: Many available spaces require additional investment to make them work, but with proper planning and professional guidance, these can become viable options.

Looking Ahead

The tight industrial market reflects the strength of Northeast Ohio’s manufacturing sector and its growing appeal to companies nationwide. The name of the game is finding available and ready sites, aligned with an area that can attract the right talent, and in a place that has ample utility infrastructure.

Working with experienced local brokers becomes essential in this market, as they have deep understanding of the economic development ecosystem and can help navigate negotiation processes and identify resources to offset acquisition costs.