Cleveland Office Market Report

Green shoots sprout as tenant demand moves forward. After climbing to 11.9 percent in 2023, overall office vacancy then fell to sub-11 percent entering this year as demand for space in all classes picked up. The metro’s first vacancy improvement since 2021 coincided with a decrease in direct and sublet space over 2024, with occupancy improving across most submarkets. Only Carroll County, Northeast and South Cleveland recorded vacancy rates above 15 percent exiting last year. Recent urban appeal has led to increased demand in the urban core and in areas to the west and south. This trend should continue as businesses like Sherman Williams and Delve Underground relocate to prime locations in Downtown and West Cleveland, with both move-ins set for 2025. The metro’s CBD noted triple-digit basis-point drops in both Class A and B/C vacancy last year, as a concentration of upcoming slated move-ins aid conditions here. Still, an increase in supply-side pressures marketwide will drive overall upward vacancy momentum.