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

1. JLL Research
Cleveland | Q4 2019
Industrial Outlook
An in-depth look at the Cleveland industrial
market. Analysis includes leasing, sales,
construction and employment.

2. Fundamentals Forecast
YTD net absorption 1,269,446 s.f. ▲
Under construction 2,971,299 s.f. ▲
YTD Deliveries 2,982,703 s.f. ▲
Total vacancy 5.9% ▶
Average asking rent (NNN) $4.20 p.s.f. ▲
Tenant improvements Falling ▼
Q4 2019
Insight
Cleveland Industrial Outlook
General Motors, Lordstown Motors, and Ford were all active in the region
during the fourth quarter announcing billions of dollars’ worth of investments.
In November, General Motors sold their 6.2 million-square-foot idled Chevy
Cruze plant to Lordstown Motors for $20.0 million. The new owner plans on
making an electric pickup truck named The Endurance with production to
begin during the second half of 2020. General Motors also announced a $2.3
billion joint investment to build a new electric vehicle battery factory in
Lordstown creating 1,100 jobs. On top of that, General Motors has pledged
$18.0 million to go into its Parma Metal Center next year. Meanwhile, Ford
made headlines announcing over $1.0 billion in updates to its assembly plant
in Avon Lake and its engine plant in Brook Park. With investments like these
and a skilled workforce, Northeast Ohio is poised to be an electric vehicle
manufacturing hub.
Beyond the automakers’ regional interest, 2019 set records for Northeast Ohio
as spec construction soared and pent-up demand strengthened for modern
bulk warehouses. Amidst this historic construction activity, the manufacturing
sector, which started the year positively, contracted five straight months as of
December, according to ISM’s Purchasing Managers’ Index. Although
manufacturing is showing weakness due to a global demand slowdown and
trade uncertainty, local companies remain optimistic as U.S. December tariffs
to China were delayed and a Phase One trade deal was reached.
Outlook
With nearly 2.5 million square feet of ongoing construction, look for a slight
uptick in vacancy as deliveries will need time to be absorbed. The number of
construction projects may also begin to tapper as the cycle matures. Rent
growth in the 3.0 percent range is expected as the warehouse and distribution
market surges. Looking forward, caution is still advised for the manufacturing
sector as headwinds persist.
Electric vehicle manufacturing to be an Ohio mainstay
0
1,000,000
2,000,000
3,000,000
4,000,000
2016 2017 2018 2019
Supply and demand (s.f.) Net absorption
Deliveries
6.3%
5.9%
5.5%
5.9%
2016 2017 2018 2019
Total vacancy
$3.00
$3.50
$4.00
$4.50
$5.00
2016 2017 2018 2019
Average asking rents ($/s.f.)
W&D Manufacturing
• General Motors sold their 6.2 million-square-foot idled Chevy Cruze plant
to Lordstown Motors for $20.0 million to make electric vehicles.
• General Motors and Ford pledged to invest billions of dollars in Ohio
plants to upgrade and modernize for future electric vehicle production.
• Contrary to the growth in the distribution sector, manufacturing has
slowed but trade tensions may ease with a new Phase One deal.
Top trends
© 2020 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.

3. Q4 2019
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.
© 2020 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 total
Warehouse & Distribution 216,348,277 1,959,571 0.9% 14,277,209 6.6% $4.55 2,982,703 2,823,299
Manufacturing 147,062,162 -690,125 -0.5% 7,037,661 4.8% $3.84 0 148,000
Totals 363,607,383 1,269,446 0.3% 21,314,870 5.9% $4.20 2,982,703 2,971,299
Downtown
Warehouse & Distribution 22,126,383 323,331 1.5% 1,514,307 6.8% $3.59 80,000 0
Manufacturing 15,518,465 204,441 1.3% 463,972 3.0% $3.80 0 0
Totals 37,644,848 527,772 1.4% 1,850,942 4.9% $3.70 80,000 0
East
Warehouse & Distribution 2,090,221 -24,645 -1.2% 92,045 4.4% $6.05 0 155,916
Manufacturing 1,958,750 -3,598 -0.2% 22,855 1.2% $4.01 0 0
Totals 4,048,971 -28,243 -0.7% 112,772 2.8% $5.03 0 155,916
Medina County
Warehouse & Distribution 12,534,202 -46,590 -0.4% 540,892 4.3% $3.38 34,000 506,000
Manufacturing 6,137,319 -23,820 -0.4% 89,544 1.5% $3.83 0 0
Totals 18,753,521 -70,410 -0.4% 541,445 2.9% $3.61 34,000 506,000
Northeast
Warehouse & Distribution 29,172,137 840,269 2.9% 1,305,505 4.5% $3.65 985,576 145,400
Manufacturing 30,618,652 -645,768 -2.1% 1,870,159 6.1% $3.75 0 0
Totals 59,874,855 194,501 0.3% 3,168,304 5.3% $3.70 985,576 145,400
South
Warehouse & Distribution 14,511,652 -296,773 -2.0% 1,261,638 8.7% $5.44 0 0
Manufacturing 10,362,876 123,808 1.2% 483,128 4.7% $5.02 0 68,000
Totals 24,874,528 -172,965 -0.7% 1,661,130 6.7% $5.23 0 68,000
Southeast
Warehouse & Distribution 52,560,669 363,700 0.7% 4,389,945 8.4% $5.13 1,270,250 528,000
Manufacturing 18,210,679 -175,345 -1.0% 883,223 4.9% $5.81 0 0
Totals 70,789,348 188,355 0.3% 4,672,866 6.6% $5.47 1,270,250 528,000
Southwest
Warehouse & Distribution 22,883,910 120,183 0.5% 1,912,707 8.4% $4.45 36,000 579,296
Manufacturing 16,900,031 79,499 0.5% 907,821 5.4% $3.77 0 0
Totals 39,783,941 199,682 0.5% 2,731,170 6.9% $4.11 36,000 579,296
Summit County
Warehouse & Distribution 37,170,782 679,755 1.8% 1,212,142 3.3% $4.48 285,600 908,687
Manufacturing 22,812,040 -33,839 -0.1% 1,641,930 7.2% $3.35 0 80,000
Totals 59,995,700 645,916 1.1% 3,137,372 5.2% $3.92 285,600 988,687
West
Warehouse & Distribution 23,298,321 341 0.0% 2,055,525 8.8% $3.65 291,277 0
Manufacturing 24,543,350 -215,503 -0.9% 684,994 2.8% $3.39 0 0
Totals 47,841,671 -215,162 -0.4% 2,778,067 5.8% $3.52 291,277 0

4. Q4 2019
Modern Bulk
Cleveland Industrial Outlook
0
1,000,000
2,000,000
3,000,000
2011 2013 2015 2017 2019
Absorption New supplyInventory 19,234,957 s.f.
Vacancy 8.5%
Average asking rent (NNN) $5.48
YTD completions 2,750,703 s.f.
Under construction 2,567,383 s.f.
Percent preleased 67.2%
Tenant Address s.f.
L’Oreal 10345 Philipp 649,000
Performance Food 8745 Chamberlin 216,000
Vitamix 23221 Morgan 175,000
CPP 26751 Bluestone 145,000
Treadmaxx Cornerstone 96,000
Supply and demandFundamentals
Asking rents and vacancyRecent leasing
$4.00
$4.75
$5.50
$6.25
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.
© 2020 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
2050 E Aurora 304,000 $157 ElmTree
3201 Columbia 320,000 $117 Investcorp
8745 Chamberlin 137,000 $92 Ares Capital
14790 Foltz 185,000 $79 Founders
30339 Diamond 400,000 $68 Plymouth
Large blocksRecent sales
Address Available s.f. Rent
43500 Victory Now 434,000 $5.50
6825 Engle Q4 2020 300,000 $6.50
4930 Scarlet Q1 2020 214,000 $5.75
Cornerstone Pkwy Now 180,000 $5.50
14720 Foltz Q3 2020 179,000 $6.50

5. Q4 2019
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.
© 2020 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: 10069 Wellman
Building size: 150,000 s.f.
Percent leased: 0%
Tenant(s): N/A
Owner: Levelan Partners
Construction type: Spec
Est. completion: Q2 2020
2
Address: Cornerstone
Building size: 276,000 s.f.
Percent leased: 35%
Tenants(s): Treadmaxx
Owner: Scannell
Construction type: Spec
Completed: Q2 2019
6
Address: 43500 Victory
Building size: 434,000 s.f.
Percent leased: 0%
Tenant(s): N/A
Owner: Westminster
Construction type: Spec
Completed: Q3 2019
5
Address: 14720 Foltz
Building size: 180,000 s.f.
Percent leased: 0%
Tenant(s): N/A
Owner: Scannell
Construction type: Spec
Est. completion: Q3 2020
4
Address: 6825 Engle
Building size: 300,000 s.f.
Percent leased: 0%
Tenant(s): N/A
Owner: Harsax
Construction type: Spec
Est. completion: Q4 2020
7
Address: 4930 Scarlet
Building size: 213,000 s.f.
Percent leased: 0%
Tenant(s): N/A
Owner: Fogg/Brennan JV
Construction type: Spec
Est. completion: Q1 2020
6
3
Address: 10615 Madison
Building size: 169,000 s.f.
Percent leased: 0%
Tenant(s): N/A
Owner: Weston
Construction type: Spec
Completed: Q4 2019
7
7

6. Q4 2019
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, 2019.
© 2020 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
303,888 $157 Nov-19
230,000 $27,016,000 $117 Apr-19
AIC Ventures 345,009 $20,861,117 $60 Jul-19
Weston Grace Bay Investments 194,632 $12,700,000 $65 May-19
STORE Capital Shore Capital Partners 65,462 $10,000,000 $153 Sep-19
Robert Brehmer 300,900 $9,580,000 $32 Jan-19
1 Merit Drive Nl Ventures 130,000 $6,725,000 $52 Feb-19
OEM/Miller 112,670 $5,000,000 $44 Feb-19
Voss Industries 270,000 $4,775,000 $18 May-19
152,896 $4,650,000 $30 Apr-19
Sedor Trust
Demag Materials Corporation
1300 Danner Drive
170 Muffin Lane
Brennan Investment Group
Starwood Capital
Spiegelberg Manufacturing
Premier Development Partners
2246 West 25th Street
29201 Aurora Road
Investcorp International Link Industrial Properties
16625 Granite Road
1793 Enterprise Parkway
3201 Columbia Road
10250 Philipp Parkway
S-l Investment Management
$47,703,771
Seller Sales priceBuilding address Buyer
2050 East Auoroa Road ElmTree Funds Scannell Properties
Number of owner-user sales 27
Transactions details
Average price per square footSales volume by submarket (s.f.)
Number of sale-leasebacks 0
12 months at a glance Sales volume by building type
Total volume ($) $249,735,746
Total volume (s.f.) 5,548,384
Number of transactions 59
Number of investment sales 32
0 1,000,000 2,000,000 3,000,000
Summit
Southeast
Northeast
Medina
West
South
Southwest
East
Downtown
0
1,500,000
3,000,000
4,500,000
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
Warehouse / Distribution Manufacturing Flex
Total volume ($) Total volume (s.f.)
$0
$25
$50
$75
Warehouse / Distribution Manufacturing Flex

7. Q4 2019
Employment
Cleveland Industrial Outlook
3.5%U.S. unemployment
1.5%U.S. 12-month job growth
3.3%Cleveland unemployment
1.3%Cleveland 12-month job growth
4.2%Ohio unemployment
0.4%Ohio 12-month job growth
-0.5%
0.2%
0.9%
1.6%
2.3%
3.0%
2015 2016 2017 2018 2019
Cleveland U.S.
-7,000
-2,500
2,000
6,500
11,000
15,500
2015 2016 2017 2018 2019
Trade,Transportation & Utilities Manufacturing
Mining, Logging & Construction Other Services
19%
17%
15%13%
11%
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 2019.
© 2020 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 Industrial employment*
0%
4%
8%
12%
910,000
1,010,000
1,110,000
2015 2016 2017 2018 2019
Employment Unemployment
-3,900
-900
-700
-200
0
900
1,700
2,400
5,300
9,000
-6,700 -4,700 -2,700 -700 1,300 3,300 5,300 7,300 9,300 11,300
Trade, Transportation & Utilities
Financial Activities
Mining, Logging & Construction
Information
Government
Other Services
Manufacturing
Leisure & Hospitality
Educational & Health Services
Professional & Business Services

8. Andrew Batson
Vice President, Research
+1 216 937 4374
andrew.batson@am.jll.com
Johnathan Miller
Research Analyst
+1 216 937 4381
johnathan.miller@am.jll.com
Contact
About JLL
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can achieve their ambitions. In doing so, we will build a
better tomorrow for our clients, our people and our
communities. JLL is a Fortune 500 company with annual
revenue of $16.3 billion, operations in over 80 countries and
a global workforce of nearly 92,000 as of June 30, 2019. JLL is
the brand name, and a registered trademark, of Jones Lang
LaSalle Incorporated. For further information, visit jll.com
About JLL Research
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© 2020 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.