3 reasons industrial developer confidence in Cleveland is at an all-time high
Cleveland has transformed into a competitive, high-demand industrial hub
Vacancy in the Cleveland industrial market is at a historic low.
But what’s driving this colossal boom in this market?
It’s undeniable that COVID-19 has changed the way we live, advancing the e-commerce market in unprecedented ways as more people turn to digital providers and online grocery shopping to make their purchases.
Though the pandemic has played a role in accelerating demand, several other key factors are driving industrial businesses to Cleveland.
1. Available inventory to match demand
Businesses wanting to expand or move are striving to find facilities that will be delivered quickly—and the Cleveland market offers that advantage. Prior to the pandemic, companies had the luxury of searching for locations six months in advance. Now, to remain competitive, they’re forced to start searching 18 to 24 months in advance to secure a location.
Though the industrial market in Northeast Ohio has been historically conservative in terms of speculative construction, growth in the market has ignited development. In fact, speculative development accounts for more than half of the year-to-date deliveries. Plus, about 1 million square feet of speculative warehouse space is currently under construction.
This, in turn, has companies gravitating toward Cleveland, knowing their demands can be met with immediacy.
2. An expansive labor pool
As digital shopping habits advance, so does the desire to rapidly fulfill orders, making labor a driving force in site selections. Customers now expect to receive packages in a matter of hours, forcing distributors to increase their employee bases to accommodate the demand.
Ohio boasts more than 660,000 employees in the manufacturing industry alone, making it a hotspot for industrial businesses. Plus, a recent LinkedIn study reported that the Cleveland region saw one of the biggest gains in net new residents during the pandemic, adding to its appeal.
3. Affordable cost of living
Cost of living and doing business have also proven to be critical advantages for industrial users moving to the city of Cleveland. According to Best Places, the cost of living in Cleveland is 22.9 percent lower than the U.S. average, making it a viable location for industrial businesses to grow and expand.
These factors have spurred growth in the Cleveland industrial market like nothing seen before. And because the era of digital shopping is here to stay, the city of Cleveland is more prepared than ever to meet the demand.
In summary, the industrial boost in the U.S., and Cleveland specifically, is poised for continued growth. Businesses are honing in on locations like Cleveland that offer key benefits that’ll leverage their success. Interested in learning more about industrial drivers in the U.S.? Download JLL’s 2021 Industrial Tenant Demand study for detailed insights, stats and more.