The Cleveland industrial market began 2018 with more than 1.6 million square feet of sales and leasing activity throughout Q1, according to a new report by CBRE.
"The Cleveland industrial market continued to demonstrate its stability and strength in Q1, with historically low vacancy, slowly rising rental rates, and, a relatively large amount of new construction projects delivered, near completion and in the pipeline," said George Stevens, SIOR, CCIM, vice president, CBRE. "However, there is an undercurrent of caution from property owners and developers due to rising construction costs as well as late-phase real estate cycle fundamentals that are being experienced in other major U.S. industrial markets."
The amount of construction completions in Q1 2018 was substantial: 684,900-square-feet. This trend should continue throughout the remainder of the year. It is expected that over 2 million-square-feet of new construction will be delivered in 2018.
Other Q1 2018 industrial market highlights include:
• The average asking lease rate saw a slight increase from $4.64 to $4.67.
• Trelleborg, a polymer manufacturer, announced that it is planning a new, 156,250-square-foot build-to-suit facility in Aurora in which it plans to consolidate its production of sealing profiles.
• Rudolph Libbe Group is renovating the buildings at 4937 and 4940 Mills Industrial Parkway in North Ridgeville. It plans to move in during Q2 2018.
• ABB's new, 135,400-square-foot, build-to-suit facility at 23000 Harvard Rd in Highland Hills was delivered in January.
• Heilind Electronics' new, 187,500-square-foot build-to-suit warehouse facility at 6200 Tin Man Road in Mentor was delivered.
You can read the full Cleveland Industrial Q1 2018 Marketview here.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world's largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.