The office market in the Cleveland area? It’s struggling today. That means it’s little different from other office markets across the country.
As companies continue to struggle to bring their employees back into the office, vacancy rates in this sector are on the rise, with no slowdown in sight.
The numbers in Newmark‘s second quarter Cleveland office report provide more evidence of just how sluggish the office sector is.
According to Newmark’s research, the greater Cleveland office market saw 58,688 square feet of negative absorption in the second quarter. This caused the market’s vacancy rate to increase by 40 basis points to 21.9% in the quarter.
The market’s vacancy rate in the first quarter of 2023 was 21.5%.
Asking office rental rates, though, did increase in the second quarter in the Cleveland market, with this number hitting $18.99 a square foot. That’s a jump of 17 cents a square foot from the first quarter of the year.
The future doesn’t look particularly bright for the Cleveland office market, either. Newmark in its second quarter report said that as the country’s economic uncertainty continues and companies deal with work-from-home and hybrid work, it is expected that vacancies will continue to rise in Cleveland’s office sector.
