A Banner Year
Cleveland’s industrial real estate market continues to go through a revival. By leveraging its legacy manufacturing infrastructures with reignited private-public partnerships focused on proactive site strategies, comprehensive economic development toolkits and continued investment into renowned medical, research and culture institutions, the market has seen positive growth this year. Together, these factors create compelling opportunities for site selectors, capital investors and communities positioning the regional economy for rapid growth in the short term.
2025 is on track to be a banner year for Cleveland in the industrial space, over 5 million square feet of new industrial space is to be added by year end, the highest seen in two decades. The market has recalibrated, reaching a 3.7% vacancy rate in Q3, up from 2.5% a year ago, as new space comes online, setting the stage for stability and confidence in 2026. This year, Ohio ranked 5th in CNBC’s top States for Business in 2025. Further, the Site Selector’s Guild has chosen Cleveland as its host city for the 2026 Fall forum, sending a signal nationwide that the opportunities here are abound, and growing.
Cleveland’s Competitive Advantage
Cleveland is well positioned for continued investment. Its strategic position as a logistics and transportation hub and rich history as a legacy manufacturing hub provides significant competitive advantages for industrial operations. The presence of 364.8 million square feet of industrial space and anchor assets such as direct access to Lake Erie and the Port of Cleveland, extensive rail networks and interstate highways, and proximity to major North American markets, establish Cleveland as a critical node for supply chain operations and distribution.
The elements required for successful attraction efforts go far beyond infrastructure, and Cleveland’s institutional and economic assets constitute a compelling value proposition for site selection. The presence of major employers including the Cleveland Clinic and University Hospitals, Eaton, Lincoln Electric, Case Western Reserve University and Cleveland State University drive sustained activity across healthcare, advanced manufacturing and technology sectors. University Circle boasts one of the nation’s densest clusters of educational and cultural institutions, contributing to quality-of-life factors that support talent attraction. The region’s cost of living is approximately 23% below the national average, with corresponding reductions in commercial real estate and operational expenses. Strong job prospects, a low cost of living and investments into Downtown’s Central Business District have helped contribute to Cleveland’s increasing rate of retention captured in a 2024 data point noting that 51% of all graduates now settle in the region.
Turning Legacy Challenges in Market Opportunities
An industrial legacy city at its core, Cleveland’s historic roots still lead the regional economy today. Manufacturing represents critical employment infrastructure, with over 6,000 manufacturers supporting 230,000+ jobs and generating $46 Billion in annual GDP across Northeast Ohio. The Cleveland-Akron-Canton’s regions top industry clusters are plastics and rubber products manufacturing, primary metal manufacturing, fabricated metal product manufacturing, printing and related support activities and machinery manufacturing according to the recently published Cleveland Fed’s Fourth District Almanac 2026.
Cleveland’s rich history and correlating infrastructure positions it well for industrial attraction but also requires more intentional revitalization efforts. While new construction activity has been occurring and has been successfully absorbed in the market, the market’s average warehouse age is 56 years old, one of the oldest inventories in the Midwest, alongside neighboring cities Detroit and Philadelphia. Many sites and buildings may have contamination from previous uses that require assessment and remediation. An older building stock challenges the ability to meet the market where it is and where it’s headed: it’s projected that 2026 will see demand growth shifting from smaller manufacturing-oriented spaces to more flexible, contemporary up to date facilities more suitable to AI age business processes, logistics and workflows. Yet with its strong manufacturing workforce and supporting infrastructure in-place, the market is ready, with financial incentives and other assistance available to underwrite and execute opportunities and unlock brownfield as well as greenfield sites.
Revitalization in Action: Winning Brownfield Grants
Cleveland has taken proactive action to redevelop, revitalize and refocus to meet market demand. A powerful tool driving redevelopment is the Ohio Brownfield Remediation Fund, designed to bring unused sites online by revitalizing former industrial or commercial locations with environmental contamination, commonly in the form of lead, petroleum and asbestos. The region’s industrial heritage has generated numerous brownfield redevelopment opportunities awaiting strategic investment. Cuyahoga County has won 25% – 50% of all state-wide brownfield funds every year since 2021, with one example this year being the 131-year old Cleveland Thermal steam plant along the Cuyahoga River, receiving $2.5M in funds to aid in riverfront development efforts, bringing new opportunities and refreshed sites to market. These funds are a necessary tool to help bring sites online. Brownfield Remediation Funds are fiercely competitive, and potential applicants should be preparing for the FY2026 funding round.
Strategic Positioning for 2026
Cleveland is a prime market for investment, especially in industrial activity. Cleveland’s infrastructure sets, renowned medical and cultural institutions, and low cost, quality of life assets continue to attract companies from around the world to invest, expand and establish roots. Looking further into 2026, collaboration and creativity are key to undertaking continued successful development wins and improving Cleveland’s competitive edge. Efforts championing the city’s development potential have re-energized in the form of proactive work like the Site Readiness for Good Jobs Fund, and programs such as competitive state-wide brownfield remediation fund and other responsive creative financing tools, getting sites ready for more modern traded sector investment and adaptive reuse. And this work paid off, with Cleveland being selected to host the Site Selector’s Guild in fall 2026, which will only open more doors for the city.
Developers, occupiers and investors can mobilize around this momentum by implementing cohesive and complementary solutions that position themselves for triumph in 2026. KJK can provide guidance through the complexity of construction and development, layered incentive programs, site selection, regulatory requirements and the multi-stakeholder coordination required to succeed.
Contact
To discuss further, contact KJK’s Economic Development & Incentives attorneys Rich Morehouse (RAM@kjk.com) and David Ebersole (DME@kjk.com).