Turn on any news station and you’ll be bombarded with talk of trade wars and tariffs. Given all of this news coverage, it’s all too easy to wonder: do we make anything in America anymore?
This sentiment is present right here in Ohio, too. Clevelanders often relish in the city’s industrial roots—as if our manufacturing, warehousing and distribution are a thing of the past. Certainly, these parts of our economy have changed, but their impact on our region has not.
In fact, there is an abundance of opportunities on the horizon for Cleveland and the greater region in terms of manufacturing and industrial demand. Already, there are thousands of companies in our region making headlines and propelling our local and national economies.
Celebrating Ohio-Made Products
Everyday, the Cushman & Wakefield | CRESCO staff is onsite with Cleveland businesses that make stuff, right here in Ohio. The backbone of our global economy is driven by these products that are used to assemble aircraft, tools, and earth-moving equipment.
But it goes beyond the companies that make the little pieces and parts. Some of our clients actually build the massive freighters and trucks that transport the materials that move our economy. And they’re all located right here in Northeast Ohio.
The Ohio Department of Development has started an initiative to catalogue the products that are made in Ohio. To be listed, the products must be assembled in Ohio and have a multi-state, national or international market focus and name recognition.
From food products and glassware to soaps, landscaping tools, furniture, tents, tires and printers, the scope of Ohio-made products is incredible and inspiring. Hundreds of consumer and industrial products fill the growing list, but many products have yet to be added.
In Cuyahoga County alone, local manufacturers produce jars, plastic bottles, vacuum cleaners, motorcycles, greeting cards, paint and welding equipment. These products represent businesses here in the Cleveland area that are innovating, elevating and impacting our local and national economy.
Ohio is the 15th largest market in the United States, and we are incredibly proud of what local businesses—including many of our own industrial real estate clients—are able to accomplish.
The Impact on Industrial Real Estate Demand
Despite the long list of products manufactured here, Ohio is still a relatively “under the radar” location when it comes to recognizing our state’s contributions to our country. But just as the tortoise was overlooked for the hare, industrial real estate in Cleveland has been quietly and steadily growing. We expect that to continue.
Cleveland’s industrial vacancy rate is at an all-time low. To put this into perspective, the vacancy rate was double the current rate during the last growth cycle’s lows. In 2017, local businesses added enough industrial space to fill the Cleveland Convention Center—three times! That’s roughly 750,000 square feet of space.
This high demand for industrial space is driving up rents and sale prices, and ultimately leading to new constructions. Efforts by developers, economic development organizations and the public sector to redevelop sites considered obsolete or faced with environmental challenges should bear fruit in the near future as well.
Cleveland residents who aren’t involved in manufacturing or real estate should still be thrilled with this upward trend. Developments to infrastructure in the areas where people live, work and play can be a huge benefit for our city overall.
Cushman & Wakefield | CRESCO anticipates industrial demand in the greater Cleveland area to hold for the next couple years, and rents and sales prices should also increase along the way. We look forward to celebrating continued economic growth and a growing list of Made in Ohio products!
To learn more about how CRESCO, Greater Cleveland’s leading commercial real estate company, can help you with your property needs, contact us at 216.520.1200, or fill out the form below. A CRESCO professional will contact you shortly.