Cleveland Office Market
Direct space availability ticked up in the third quarter of 2024 by 30 basis points from the second quarter to 21.3%. Sublease space availability dipped by 20 basis points to 1.5%, and continued a downward trend from the second quarter of 2023. Overall vacancy decreased to 23.1%, down 10 basis points from the second quarter of 2024. The Cleveland office market absorbed 77,486 SF in the third quarter of 2024, two quarters in a row that resulted in net occupation after a first quarter in the negative. The Cleveland office market’s average asking rental rate increased slightly by $0.01/SF from the second quarter of 2024 to $19.96/SF.
Download Cleveland Office Market Report 3Q24Cleveland Industrial Market
The Cleveland industrial market gave back 168,558 SF of space in the third quarter. As a result of the small amount of negative absorption, vacancy increased by just 10 basis points to 4.1% from 4.0% in the previous quarter. Year-to-date vacancy for the first three quarters combined at 4.1% continued to remain well below the long-term average vacancy of 8.0%. Demand for industrial space rebounded in the third quarter of 2024. After the second quarter was under 1.0 million SF for the first time in the last 10 years, third quarter leasing activity ended at 1.7 million SF, up from 880,633 SF in the previous quarter. Industrial average asking rents for the first three quarters of 2024 grew by a combined 6.2% year-over-year, down 50 basis points from the first and second quarter of 2024’s growth rate. The average asking rent for the third quarter was $6.15/SF, down by $0.06/SF from the previous quarter, but still marked four straight quarters over $6.00/SF, and the fourth-highest asking rate in at least 20 years.