Amazon Distribution Center Set To Deliver in Northeast Ohio

September 27, 2018

Amazon is set to open the doors on its 700,000-square-foot distribution center at 1280 E. 260th St. in Euclid, Ohio, next quarter, further strengthening the Cleveland industrial scene. This is the third distribution center the shipping giant has opened in northeast Ohio, and a fourth is anticipated to be established outside of Akron in the coming years.

Logistics has buoyed industrial fundamentals for much of the cycle, as ecommerce continues to take a bigger bite out of brick-and-mortar retail. Most Ohio shipping centers have been established in the western half of the state, as Columbus and Cincinnati offer retailers a much more desirable location.

Industrial rent growth in these two cities has been explosive over the course of the cycle, but gains have been a bit more subdued in Cleveland. Large scale shipping centers are a marked change from historical precedent in northeast Ohio, and the area is defined by its traditional industrial and manufacturing hubs.

However, industrial rent growth has been positive for much of the cycle, and could be further bolstered by the growing strength of manufacturing. Several hundred thousand manufacturing jobs have been added nationwide over the past two years, with 10,800 new manufacturing jobs arriving in Ohio since 2017.

Northeast Ohio has finally fully recovered from the recession, and is producing more than it did in 2007. According to Ethan Karp, chief executive officer of the Manufacturing Advocacy and Growth Network, executives within the area are “overwhelmingly positive” about the future. They have many reasons to be enthusiastic, and so do owners of industrial properties. Vacancies are close to all-time lows, and while gains have yet to reach Columbus levels, owners are seeing strong year-over-year gains.


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