Southeast SubMarket & Big Box Analysis
June 10th, 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
- 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
- Extremely tight 1.4% vacancy rate for big box buildings.
- Four Spec Projects Currently Under Construction
|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|
|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.