If you’re in need of additional industrial space for your business, or you’re looking to buy an industrial property as an investment, you’re out of luck. That is, if you’re looking in western Cuyahoga County or Lorain County.
There are currently zero industrial or warehouse properties listed for sale (LoopNet & Crexi) in the following cities in Lorain County as of 3/26/24: Avon, Avon Lake, Sheffield Lake, Sheffield Village, North Ridgeville, Amherst, Oberlin, Wellington, LaGrange, Columbia Station, Eaton, South Amherst, Kipton. The two cities in Lorain County with the most available industrial buildings are Elyria and Lorain, but even still, the inventory is extremely limited.
In western Cuyahoga County, there are almost no buildings listed for sale in Westlake, Berea, North Olmsted, Olmsted Falls, Rocky River, Bay Village, Lakewood, Fairview Park.
It’s a similar scenario for tenants. Space is very limited, and demand is greatly outweighing supply. From my experience leasing a 6,300 SF warehouse/flex space in Avon, there is strong demand for industrial space from a wide variety of users, such as: HVAC contractors, e-commerce companies, car detailers, auto repair shops, warehousing companies, distributors, tooling companies, light manufacturing companies, luxury car clubs, pickleball clubs, fitness and personal training, golf/baseball/lacrosse training.
It was recently announced that the Cleveland Pickleball Club will be occupying 50,000 SF of warehouse space on Pin Oak Parkway in Avon Lake come the end of the summer. Traditional industrial tenants are now competing with up-and-coming uses like pickleball for valuable warehouse space. Landlord’s are in the driver’s seat, while tenants are scrambling to find space.
Lease rates will continue to trend upwards in these markets due to the lack of new supply currently under construction. The few new buildings currently under construction are owner-user buildings, meaning those properties won’t be available to tenants in need of space, so vacancy will be unaffected.
A key factor driving the demand for Lorain County industrial space is population growth. From 2010 through 2019, Lorain County grew 2.7% while Cuyahoga shrunk 2.8%. Lower city/county taxes and a plethora of new housing developments continue to make Lorain County attractive for people across Northeast Ohio.
This isn’t to say that the industrial markets in Cuyahoga County or other surrounding counties aren’t performing well themselves. They are. Demand is also strong, and new inventory isn’t coming to market quickly enough. However, there is more existing supply of for-sale and for-lease properties compared to Lorain County, which makes sense given Cleveland and Cuyahoga county are mature industrial markets as compared to outer suburban communities.
Overall, if you’re a landlord or owner right now, you’re sitting pretty (or at least you should be). I believe lease rates will trend slightly higher, or at a minimum remain flat, for the next several years, as the supply/demand imbalance across industrial real estate continues into the near future.
If you’re a buyer or tenant, you have to act swiftly in order to secure the space or property you need. If you need help looking for space, or you’re considering selling, feel free to reach out (440-503-1150 | Sam@TrinityCREgroup.com) and I’ll be happy to discuss your needs.
Cleveland Industrial Real Estate 
Leave a comment