Cleveland’s commercial real estate market is no longer asking whether it can compete; it’s proving that it already does.
At the June 2026 Midwest Real Estate News 12th Annual Cleveland Summit, one theme came through clearly: transformation in Greater Cleveland is no longer driven by isolated projects, but by alignment across an entire regional ecosystem. From catalytic downtown redevelopment to suburban reinvestment, from private capital to quality-of-life assets and advanced technology platforms, the next chapter of Northeast Ohio’s growth will depend on how well these elements work together.
That message is reinforced at the highest level. In 2026, Ohio was ranked the No. 1 state for business in the country by CNBC, reflecting a years-long climb supported by strong infrastructure investments and a highly competitive cost structure. From our vantage point at Colliers, this recognition is consistent with many of the trends we are seeing in the market. While overall absorption has remained measured across several asset classes, leasing and investment activity are increasingly tied to long-term fundamentals that favor Ohio and, more specifically, Northeast Ohio.
As moderator of the “Transforming Downtown and Suburban Development—Game Changers” panel, the discussion reinforced what many of us are seeing every day: Cleveland’s opportunity is real, but unlocking it requires a coordinated approach that integrates development, infrastructure, talent, and innovation.
Kevin Malinowski, executive managing director, Colliers.
A System, Not a Set of Projects
What makes Cleveland unique today is the emergence of a system-wide approach to development. Major urban projects such as the repositioning of legacy assets and waterfront planning represent visible anchors. At the same time, suburban mixed-use reinvestment continues to evolve into community-centered environments that support local growth.
The macro narrative supporting these investments is strong. CNBC’s ranking cited Ohio’s No. 1 position in infrastructure, as well as its ability to provide access to more than 143 million people within a day’s drive; a geographic advantage that continues to be an important consideration for many logistics and supply chain users.
At the local level, that advantage can also be seen in real estate fundamentals.
Office vacancy remains elevated compared to historical norms, but high-quality, amenity-rich assets continue to outperform as tenants prioritize workplace experience. In the industrial sector, vacancy has ticked up slightly with new supply, yet demand remains healthy, particularly from advanced manufacturing and technology-driven users.
Colliers 2Q2026 Market Data supports this shift.
- Overall Office vacancy: ~16.5% reflecting continued national pressure on office occupancy strategies
- Overall Industrial vacancy: ~5.7%, remaining within a healthy range despite new deliveries
- Net absorption (industrial): ~63,000 SF, a shift from previous negative absorption
- Average asking rents (industrial): $4.64/SF, continuing to hold relatively stable
What this tells us is: demand has not disappeared, but it has become more selective.
Regional leadership also plays an important role in helping align priorities, resources and long-term economic development objectives, supporting growth that benefits both businesses and the broader community.
Equally important is the region’s quality of place. Investments in parks, connectivity, and lakefront access can enhance livability while also contributing to talent attraction and broader economic development goals.
When viewed together, these components form a cohesive platform:
- Developers delivering catalytic projects
- Suburban reinvestment sustaining regional balance
- Public space enhancing livability
- Waterfront development connecting the system
This integrated model represents a fundamental shift in how markets like Cleveland compete nationally.
Continued Proactive Growth
While the panel focused on physical transformation, another equally important dimension is emerging: proactive business attraction tied to Northeast Ohio’s technological strengths. The region is home to one of its most underutilized competitive advantages; the NASA Glenn Research Center. When aligned with economic development organizations like Team NEO and other partners such as the Aerozone Alliance, this asset has the potential to transform both the economy and real estate demand.
From a market perspective, we are seeing early signals of this shift. A growing share of industrial and flex-space requirements involves companies with R&D, production, or testing components with users that can align directly with NASA Glenn’s capabilities.
This is not about marketing a single institution. It is about converting mission-critical research into private sector growth, technology commercialization, and sustained job creation.
Competing on Risk, Not Just Cost
Historically, Midwest markets have been viewed as lower-cost alternatives to coastal hubs; however, that perspective captures only part of the story. Ohio’s top ranking highlights the growing importance of factors tied to risk mitigation and long-term business resilience. Companies are increasingly prioritizing:
Companies are increasingly prioritizing:
- Infrastructure reliability
- Market access
- Cost predictability
- Speed to deployment
Ohio is well positioned across many of these dimensions. The state’s investment in site readiness, including significant funding for shovel-ready locations, has made it easier for companies to accelerate timelines and reduce execution risk.
From a commercial real estate perspective, this can be a significant differentiator. It helps position Northeast Ohio to compete not only for cost-sensitive users, but also for high-value, time-sensitive projects in sectors such as advanced manufacturing, aerospace and technology.
Targeting the Right Industries
The opportunity is not to create new industries, but to selectively attract segments of existing ones. Target sectors align directly with NASA Glenn’s capabilities and include: aerospace manufacturing and propulsion systems; advanced materials and specialty chemicals; power and energy systems; communications and navigation technologies; and research and development in engineering and life sciences. These industries often require proximity to testing, certification, and research infrastructure – assets that contribute to Northeast Ohio’s attractiveness for high-value expansion projects.
Ohio has seen continued investment in these sectors, from advanced manufacturing facilities to large-scale data center developments, which continue to cluster in markets with strong infrastructure and energy capacity.
The Role of Collaboration
Executing this strategy requires coordination across the regional ecosystem.
Economic development organizations play a key role in business attraction and in translating regional strengths into compelling business cases. Real estate stakeholders help ensure the availability of flexible, market-ready facilities, while research institutions contribute as important innovation anchors.
This echoes what we discussed at the recent summit: no single entity can drive transformation alone. Success depends on alignment between public and private sectors; urban and suburban markets; economic development; and real estate execution.
Implications for the Commercial Real Estate Market
For owners, developers, and investors, the implications are noteworthy. The state’s No. 1 ranking reinforces many of the underlying fundamentals that continue to shape real estate decision-making across Northeast Ohio:
- Increased demand for specialized industrial and R&D space
- Continued bifurcation in the office market
- Growing importance of mixed-use, talent-oriented environments
- Stronger integration of infrastructure and placemaking
At the same time, affordability remains a key advantage. Ohio ranks among the most competitive states in cost of doing business, with relatively low real estate costs compared to coastal markets.
A Defining Moment for Northeast Ohio
Northeast Ohio benefits from a distinctive mix of assets, including leading research institutions, deep industrial expertise, competitive operating costs, energy reliability, and an established real estate foundation.
Ohio’s recognition as the top state for business is more than a headline; it’s a signal to investors, developers, and occupiers that this market is positioned for long-term growth.
The opportunity now lies in execution.
If the region continues to align its development strategy with its innovation ecosystem and market fundamentals, Cleveland can move beyond being a resurgent market to becoming a nationally differentiated hub for advanced industry and connected, livable communities. The pieces are in place. The next chapter will depend on how effectively they come together.
Kevin Malinowski is Executive Managing Director and Market Leader for Northeast Ohio with Colliers.
Sources
- CNBC, Ohio is America’s Top State for Business in 2026, capping yearslong rise with first No. 1 finish (July 9, 2026). [cnbc.com]
- CNBC, Top States for Business 2026: Ohio (2026 Rankings). [cnbc.com]
