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Southeast SubMarket & Big Box Analysis

Saturday, June 10, 2017

Southeast Submarket Analysis

  • Vacancy rate was 5.1% (second lowest of any market in 1Q17).
  • 289,411 SF of positive absorption (most absorption of all Cleveland submarkets in 1Q17).
  • The highest asking rent of all submarkets ($5.37/SF).
  • Since 1Q15, inventory has increased by 1,616,428 SF.
  • Availability continues to shrink (see Exhibit Two).
  • Only five properties in Twinsburg that are 250,000 SF or greater since 1992; 93,967 SF of this
  • inventory remains available (5.7%). Of that limited available space, none of it is currently
  • vacant.
  • Increased demand for properties with 24-foot ceilings and above.
  • Created a shortage of supply that has delivered increased revenue offered to sellers in the
  • market.
  • Extremely tight 1.4% vacancy rate for big box buildings.
  • Four Spec Projects Currently Under Construction

Address City Submarket Building Size Available
14720 Foltz Pkwy. Building 2 Strongsville Southwest 139,440 SF 23,200 SF
6001 Towpath Dr. Expansion Valley View Southcentral 80,000 SF 0 SF
6279 Hudson Crossing Pkwy. Hudson Southeast 125,000 SF 125,000 SF
530 Seasons Rd. Stow Southeast 114,188 SF 27,106 SF
         
Address City Submarket Building Size Available
55 E Hines Hill Rd. Hudson Southeast 770,000 SF 0 SF
2 Corporate Pkwy. Twinsburg Southeast 207,360 SF 35,000 SF
2 Independence Pkwy. Twinsburg Southeast 380,000 SF 0 SF
8685 Independence Pkwy. Twinsburg Southeast 248,000 SF 0 SF

 

Big Box Analysis

Since 2000, there have been 124 big box projects completed (50,000 SF and above). Southeast submarket comprises 53% of the total Northeast Ohio big box inventory. Twinsburg comprises 8% of the total Northeast Ohio big box inventory.

In terms of big box properties, 18,339,606 SF of inventory exists in the total market with 124 total buildings. The average building size is 147,900 SF. Of that total inventory, there is 1,139,577 SF of availability (6.2%), comprised of 23 buildings, with an average building size of 9,190 SF. The numbers on vacancy are similar: 1,111,058 SF of vacancy (6.1%), comprised of 15 buildings with an average building size of 8,960 SF. n the Southeast submarket, 9,681,369 SF of inventory exists with 55 total buildings, an average building size of 176,024 SF with 593,763 SF of availability (6.1%). Available inventory is comprised of eight buildings, with an average building size of 107,965 SF and 828,796 SF of vacancy (8.6%), comprised of eight buildings with an average building size of 15,069 SF. In the Twinsburg submarket there is 1,491,212 SF of inventory for seven total buildings. The average building size is 213,030 SF with 128,967 SF of availability (8.6%), comprised of two buildings with an average building size of 18,423 SF. There is 100,000 SF of vacancy (6.7%), comprised of two buildings with an average building size of 14,285 SF.