An in-depth look at the Cleveland industrial market. Analysis includes leasing, sales, construction and employment.

1. JLL Research
Cleveland | Q4 2018
Industrial Outlook
An in-depth look at the Cleveland industrial
market. Analysis includes leasing, sales,
construction and employment.

2. Q4 2018
Insight
Cleveland Industrial Outlook
Year-end industrial activity was amplified across Northeast Ohio due to key
actions by Arcapita, Weston, the Firestone Business Park, Ford and General
Motors. In November, Arcapita and Weston jointly purchased a seven building
portfolio totaling over 655,000 square feet for $44.5 million ($68 per square
foot). Additionally, Weston plans to construct four new spec buildings
accumulating 480,000 square feet in Lake and Cuyahoga Counties. In Akron,
the Firestone Business Park welcomed a groundbreaking on a redevelopment
of the old tire factory, which includes a new 100,000-square-foot warehouse.
Meanwhile, Ford put its 1.7 million-square-foot aluminum casting plant in
Brook Park on the market, joining the 1.2 million-square-foot stamping plant
in Walton Hills that went on the market in June. Finally, General Motors
announced the closure of their longtime Chevy Cruze plant in Lordstown.
Moreover, corporate real estate strategies are shifting as companies evolve
and diversify product lines to meet market demand. Companies like Swagelok
building their new headquarters in Solon and ReLink moving their
headquarters to Twinsburg. The list continues with major investments from
HomeGoods, BWXT, PITT OHIO, Schaeffler and more. Real estate investments
announced in the fourth quarter tally over $400.0 million with more than 1.8
million square feet of building expansions. By expanding their footprints,
these companies are streamlining their business operations and are more
effectively serving their clientele.
Outlook
2018 was a positive year for the Cleveland industrial market. Deregulation and
tax reform led to footprint expansions and the upgrading of assets. This trend
will continue into 2019 but may start to plateau. Similarly, demand for
modern bulk product is strong but is likely to moderate in the year ahead.
Look for new construction to slow and for vacancy to level off in 2019 as the
market matures. Rent growth will continue in the 3.0 percent range.
Fundamentals Forecast
YTD net absorption 2,693,996 s.f. ▲
Under construction 3,735,500 s.f. ▶
YTD Deliveries 2,124,500 s.f. ▲
Total vacancy 5.5% ▼
Average asking rent (NNN) $4.27 p.s.f. ▲
Tenant improvements Falling ▼
Continued growth propelled by industry diversification
0
1,000,000
2,000,000
3,000,000
4,000,000
2014 2015 2016 2017 2018
Supply and demand (s.f.) Net absorption
Deliveries
6.9%
6.7%
6.3%
5.9%
5.5%
2014 2015 2016 2017 2018
Total vacancy
$3.00
$3.50
$4.00
$4.50
2014 2015 2016 2017 2018
Average asking rents ($/s.f.)
W&D Manufacturing
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
• Corporate real estate strategies are shifting as companies evolve and
diversify product lines to meet market demand.
• Companies are expanding their footprints and streamlining business
operations with strategic investments and efficient growth plans.
• Look for new construction to slow and for vacancy to level off in 2019 as
the market matures. Rent growth will continue in the 3.0 percent range.
Top trends

3. Q4 2018
Statistics
Cleveland Industrial Outlook
The property set was updated to reflect the latest market dynamics, including the removal of functionally obsolete properties and the addition of recently completed developments.
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Inventory
(s.f.)
YTD
absorption
(s.f.)
YTD
absorption
(% of stock)
Total
availability
(s.f.)
Total
availability
(%)
Average
asking rent
($ p.s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Cleveland Totals
Warehouse & Distribution 209,913,286 2,226,422 1.1% 12,730,108 6.1% $4.32 2,080,500 3,735,500
Manufacturing 147,063,357 467,574 0.3% 6,906,436 4.7% $4.17 44,000 0
Totals 356,993,541 2,693,996 0.8% 19,636,544 5.5% $4.27 2,124,500 3,735,500
Flex 23,283,744 418,167 1.8% 2,210,619 9.5% $8.87 179,000 0
Downtown
Warehouse & Distribution 21,287,914 429,583 2.0% 1,379,679 6.5% $3.07 50,000 0
Manufacturing 15,223,700 -44,507 -0.3% 773,895 5.1% $5.30 0 0
Totals 36,511,614 385,076 1.1% 2,153,574 5.9% $3.87 50,000 0
Flex 1,200,785 -25,376 -2.1% 58,760 4.9% $16.00 0 0
East
Warehouse & Distribution 2,282,718 28,678 1.3% 99,871 4.4% $6.08 0 80,000
Manufacturing 1,805,678 46,027 2.5% 19,676 1.1% $4.97 0 0
Totals 4,088,396 74,705 1.8% 119,547 2.9% $5.90 0 80,000
Flex 1,981,281 19,204 1.0% 158,903 8.0% $8.64 0 0
Medina County
Warehouse & Distribution 12,455,605 -113,000 -0.9% 697,472 5.6% $3.64 0 506,000
Manufacturing 6,151,152 229,281 3.7% 95,594 1.6% $4.75 0 0
Totals 18,606,757 116,281 0.6% 793,066 4.3% $3.77 0 506,000
Flex 1,401,773 113,691 8.1% 60,898 4.3% $8.25 0 0
Northeast
Warehouse & Distribution 27,854,242 647,518 2.3% 1,132,887 4.1% $3.67 262,500 910,000
Manufacturing 30,952,425 -272,757 -0.9% 1,541,229 5.0% $4.03 0 0
Totals 58,806,667 374,761 0.6% 2,674,116 4.5% $3.88 262,500 910,000
Flex 1,821,098 76,884 4.2% 163,958 9.0% $8.95 0 0
South
Warehouse & Distribution 14,250,453 188,752 1.3% 1,007,610 7.1% $5.31 61,000 0
Manufacturing 10,305,081 -132,478 -1.3% 549,533 5.3% $4.57 0 0
Totals 24,555,534 56,274 0.2% 1,557,143 6.3% $5.05 61,000 0
Flex 3,757,480 4,367 0.1% 426,111 11.3% $9.35 0 0
Southeast
Warehouse & Distribution 49,962,490 1,107,784 2.2% 3,206,010 6.4% $4.67 1,370,000 1,679,000
Manufacturing 18,440,584 331,576 1.8% 662,041 3.6% $4.96 0 0
Totals 68,403,074 1,439,360 2.1% 3,868,051 5.7% $4.72 1,370,000 1,679,000
Flex 6,617,054 14,619 0.2% 882,150 13.3% $8.87 145,000 0
Southwest
Warehouse & Distribution 21,973,402 514,453 2.3% 1,945,422 8.9% $4.89 337,000 247,000
Manufacturing 17,208,472 -96,366 -0.6% 928,296 5.4% $3.55 0 0
Totals 39,181,874 418,087 1.1% 2,873,718 7.3% $4.46 337,000 247,000
Flex 2,893,290 -103,282 -3.6% 262,453 9.1% $7.33 0 0
Summit County
Warehouse & Distribution 36,748,089 -121,050 -0.3% 1,701,629 4.6% $4.57 0 210,500
Manufacturing 23,066,307 443,034 1.9% 1,670,178 7.2% $3.38 44,000 0
Totals 59,814,396 321,984 0.5% 3,371,807 5.6% $3.98 44,000 210,500
Flex 2,499,244 119,202 4.8% 168,704 6.8% $9.57 34,000 0
West
Warehouse & Distribution 22,930,746 -474,418 -2.1% 1,646,714 7.2% $3.53 0 103,000
Manufacturing 24,525,569 -84,236 -0.3% 683,274 2.8% $5.14 0 0
Totals 47,456,315 -558,654 -1.2% 2,329,988 4.9% $4.00 0 103,000
Flex 1,014,235 52,178 5.1% 44,173 4.4% $9.20 0 0

4. Q4 2018
Modern Bulk
Cleveland Industrial Outlook
0
800,000
1,600,000
2,400,000
2010 2012 2014 2016 2018
Absorption New supplyInventory 17,637,409 s.f.
Vacancy 3.6%
Average asking rent (NNN) $5.48
YTD completions 1,952,480 s.f.
Under construction 3,318,495 s.f.
Percent preleased 74.1%
Tenant Address s.f.
McMaster-Carr 1200 Chillicothe 410,000
O’Reilly Auto Parts 2050 Aurora 404,000
HD Supply 30311 Emerald 141,000
Mantua 31031 Diamond 110,000
Lincoln Electric 26250 Bluestone 75,500
Supply and demandFundamentals
Asking rents and vacancyRecent leasing
$3.75
$4.50
$5.25
$6.00
2010 2012 2014 2016 2018
0%
7%
14%
21%
Rents Vacancy
Modern bulk properties are defined as warehouses ≥75,000 square feet, built since 2000 with 24’ clear heights and ESFR.
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Building s.f. $ p.s.f. Buyer
4651 Prosper 219,765 $89 Monmouth
14790 Foltz 185,210 $79 Founders
12850-13000 Darice 554,037 $72 VEREIT
30339 Diamond 401,401 $67 Plymouth
5565-5575 Venture 251,195 $57 Arcapita JV
Large blocksRecent sales
Address Available s.f. Rent
43500 Victory Q1 2019 434,000 $5.50
CornerStone Pkwy Q2 2019 276,000 $5.50
4863 Scarlet Now 136,000 $5.75
38585 Jet Center Q1 2020 130,000 $5.50
9050 Tyler Now 108,500 $5.00

5. Q4 2018
Construction
Cleveland Industrial Outlook
1
4
3
5
2
This map highlights a partial list of construction projects either planned, under construction, or recently completed.
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
1
Address: 1280 E 260th
Building size: 650,000 s.f.
Percent leased: 100%
Tenant(s): Amazon
Owner: Seefried
Construction type: BTS
Est. completion: Q2 2019
2
Address: Cornerstone
Building size: 276,000 s.f.
Percent leased: 0%
Tenants(s): N/A
Owner: Scannell
Construction type: Spec
Completion: Q3 2019
3
Address: 43500 Victory
Building size: 434,000 s.f.
Percent leased: 0%
Tenant(s): N/A
Owner: Westminster
Construction type: Spec
Est. Completion: Q1 2019
4
Address: 38585 Jet Center
Building size: 130,000 s.f.
Percent leased: 0%
Tenant(s): N/A
Owner: Weston
Construction type: Spec
Est. completion: Q2 2020
5
Address: 3620 Mallard
Building size: 103,000 s.f.
Percent leased: 0%
Tenant(s): N/A
Owner: Brad Maloof et al
Construction type: Spec
Est. completion: Q1 2019

6. Q4 2018
Sales
Cleveland Industrial Outlook
This dashboard analyzes industrial sales ≥$1,000,000 and ≥30,000 square feet over a 12-month period, ending December 31, 2018.
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Noteable sales transactions
Size (s.f.) $ p.s.f. Sale date
655,000 $68 Nov-18
555,170 $64 Mar-18
401,401 $67 Oct-18
668,592 $32 Jul-18
AIC Ventures 351,553 $19,135,000 $55 Aug-18
Founders Properties 185,210 $14,650,000 $79 Apr-18
Global Net Lease Constractors Steel 222,860 $13,978,771 $63 May-18
603 Alpha Drive Geis Companies 189,000 $13,500,000 $71 May-18
137,000 $12,615,385 $92 Dec-18
Ed Natan 79,004 $8,250,000 $104 Feb-18
12 months at a glance Sales volume by building type
Total volume ($) $334,093,674
Total volume (s.f.) 7,844,095
Number of transactions 71
Number of investment sales 29
Seller company Sales priceBuilding address Buyer company
Number of owner-user sales 38
Transactions details
Average price per square footSales volume by submarket (s.f.)
Number of sale-leasebacks 4
$35,487,300Brennan Investment Group Arch Street Capital Advisors
Seven building portfolio Arcapita Joint Venture Biynah Industrial Partners $44,550,000
Two building portfolio
30339 Diamond Parkway Plymouth Industrial
14790 Foltz Parkway
Fourteen building portfolio
3009 Gilchrist Road Global Net Lease
Scannell Properties
8745 Chamberlin Road
6200 Hillcrest Road Alex Brown Realty
The Progressive Corporation
Pinchal & CompanyAres Commercial Real Estate
Six building portfolio
Sherwood Food Distributors
$21,376,099Insite Real Estate
$27,000,000Weston
0 1,000,000 2,000,000 3,000,000
Summit
Southeast
Southwest
Medina
West
Northeast
East
South
Downtown
0
1,500,000
3,000,000
4,500,000
6,000,000
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
Warehouse / Distribution Manufacturing Flex
Total volume ($) Total volume (s.f.)
$0
$25
$50
$75
Warehouse / Distribution Manufacturing Flex

7. Q4 2018
Employment
Cleveland Industrial Outlook
3.7%U.S. unemployment
1.8%U.S. 12-month job growth
4.4%Cleveland unemployment
2.9%Cleveland 12-month job growth
4.6%Ohio unemployment
2.1%Ohio 12-month job growth
-0.5%
0.2%
0.9%
1.6%
2.3%
3.0%
2014 2015 2016 2017 2018
Cleveland U.S.
-700
-200
400
2,000
2,600
3,800
4,900
4,900
5,400
7,700
-2,500 1,300 5,100 8,900
Other Services
Information
Financial Activities
Government
Mining, Logging & Construction
Manufacturing
Educational & Health Services
Leisure & Hospitality
Professional & Business Services
Trade, Transportation & Utilities
0%
4%
8%
12%
910,000
1,010,000
1,110,000
2014 2015 2016 2017 2018
Employment Unemployment
19%
18%
14%13%
12%
10%
6%
Educational & Health Services
Trade, Transportation & Utilities
Professional & Business Services
Government
Manufacturing
Leisure & Hospitality
Financial Activities
Mining, Logging & Construction
Other Services
Information
* Represents 12-month change in employment. All charts represent the latest economic data available from the Bureau of Labor Statistics as of December 2018.
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Job growth by sector*Historical employment
Job growth*
Employment by industry
-7,000
-2,500
2,000
6,500
11,000
15,500
2014 2015 2016 2017 2018
Trade,Transportation & Utilities Manufacturing
Mining, Logging & Construction Other Services
Industrial employment*

8. Andrew Batson
Vice President, Research
+1 216 937 4374
andrew.batson@am.jll.com
Johnathan Miller
Research Associate
+1 216 937 4381
johnathan.miller@am.jll.com
Contact
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
About JLL
JLL (NYSE: JLL) is a leading professional services firm that
specializes in real estate and investment management. A
Fortune 500 company, JLL helps real estate owners,
occupiers and investors achieve their business ambitions. In
2017, JLL had revenue of $7.9 billion and fee revenue of $6.7
billion; managed 4.6 billion square feet; and completed
investment sales, acquisitions and finance transactions of
approximately $170 billion. At the end of 2017, JLL had
nearly 300 corporate offices, operations in over 80 countries
and a global workforce of 82,000. As of December 31, 2017,
LaSalle had $58.1 billion of real estate assets under
management. JLL is the brand name, and a registered
trademark, of Jones Lang LaSalle Incorporated. For further
information, visit www.jll.com.
About JLL Research
JLL’s research team delivers intelligence, analysis and
insight through market-leading reports and services that
illuminate today’s commercial real estate dynamics and
identify tomorrow’s challenges and opportunities. Our more
than 400 global research professionals track and analyze
economic and property trends and forecast future
conditions in over 60 countries, producing unrivalled local
and global perspectives. Our research and expertise, fueled
by real-time information and innovative thinking around the
world, creates a competitive advantage for our clients and
drives successful strategies and optimal real estate
decisions.