Two central storylines of the current Greater Cleveland Industrial Market are the desire for big box/modern distribution facilities and the construction of new properties throughout the area, including speculative buildings (or those without a pre-leased tenant in place).
Newmark Knight Frank defines Big Box/Modern Distribution Buildings by the following parameters:
• 24-foot clear ceilings and up
• Built after 1990
• ESFR sprinklers
• Modern truck court and column spacing
• 50,000 square feet and larger
Big box/modern distribution facilities have become desirable primarily due to the surge of e-commerce and, in particular, Amazon’s never-ending expansion into markets around the United States to cut down on delivery times and expand its warehousing. Other companies in the e-commerce arena are starting to follow suit and traditional manufacturers continue to have the need for facilities that can meet all of their requirements for distribution and storage. Therefore, space of this type is at a premium and has necessitated the need for companies to either build their own or for investors to meet that need by constructing speculative facilities that growing companies could make their own.
Industrial construction ballooned to 3.6 million square feet in the second quarter of 2018. Every submarket has at least one building that is currently being built.
In its Big Box Interactive Map below, Newmark Knight Frank’s research identifies all of the recent investment sales of these property types, as well as plots them in groups from the decades in which they were constructed.
Finally, in its Modern Distribution and Construction Report for August 2018, availability and construction statistics are broken down and identified and speculative construction analyses are determined.