The Office Sector is (Slowly) On the Rise
In the Medina County market, we have seen an increased need for office space over the last 6 months. What was once solely a manufacturing community has now transitioned to a mix of knowledge-based industries; while Cleveland’s presence as a healthcare hub slowly spills into the suburban communities as well. This lead us to explore the question, “Is office space a market trend on the rise?” To our surprise, it seems as if the Cleveland and Akron/Canton office markets have been steadily growing since their greatest vacancies that impacted the business in 2011. We now see a vacancy rate of 12.9% in Medina County with the average asking price of $18.99/sf (which may be slightly inflated due to single office space). Although not an overnight change, the pace has quickly picked up over the last year and is projected to increase even more rapidly over the next few years to come.
We typically attribute a greater need for office as an increase in jobs in the community. Although this was once true, we are seeing through key market indicators and research that the change in need is actually driving this force. Office users are seeking less space per employee than in generations past. Instead of cubicles and private offices, open floor plan concepts are more admired. Companies are also transitioning toward remote work and co-working facilities, a concept fueled by Millennials that has been slower to catch on in the Cleveland suburban market.
In Medina county alone, we are desperately in need of Class A and B office space, which seems to be consistent with the Cleveland market as well. Diminishing space allows for landlords to increase the price per square foot due to need. Do you have space available in your building or are you seeking a move? Let Gerspacher help today.