Commercial real estate brokers

CRESCO Spotlight

Shrinking Industrial Real Estate Options in Northeast Ohio Drive Up Tenant Costs

The Northeast Ohio industrial real estate market continues to tighten, with the vacancy rate at a historically low 3 percent. For tenants on a lease that need to stay in their current building or need to move because their requirements have changed, these conditions leave very few alternatives.

As recent as five years ago, when the vacancy rate was steady around 8 percent, tenants had options, which gave them some leverage,” says Joseph V. Barna, a principal at Cushman & Wakefield | CRESCO Real Estate. “Today, because of the tight real estate market, tenants are seeing significantly higher rates than they’re accustomed to paying, and yet competition for space is fierce.”

Smart Business spoke with Barna about the challenges tenants, buyers and builders are facing in the Northeast Ohio industrial real estate market.

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