Summary: Cleveland’s industrial market (Bradley County) finished Q3 2025 in balanced shape, supported by a resilient manufacturing base, steady logistics demand along I-75, and city-led redevelopment momentum downtown. While hard, centralized metrics for the Cleveland, TN MSA are limited in the public domain, local indicators and active listings point to healthy tenant interest with asking rents commonly in the low-to-mid $7/SF NNN range for functional warehouse and light-manufacturing space. Regional macro forces—cooler but stabilizing U.S. industrial demand and a slower construction pipeline—continue to favor well-located, right-sized product in Cleveland.
“Cleveland’s edge is practical: interstate access, an experienced industrial workforce, and no drama on the supply side. That combination keeps the market durable—even when national headlines get noisy.” — David Melton, Managing Broker, Pointe Commercial Real Estate
Leasing & Rates: Public brokerage portals show multiple Cleveland/Bradley County availabilities and comps clustered around $7.20–$7.75/SF/YR for modern distribution and larger second-generation space, with smaller/flex bays pricing higher per square foot. Treat these as asking indications rather than a market average.
Labor & Local Economy: Bradley County’s unemployment rate hovered near 3.9% (July 2025), signaling a tight labor market for logistics and light manufacturing. The Chamber’s dashboard underscores steady local fundamentals.
Demand Mix: Cleveland’s roster of established manufacturers and distribution users—highlighted by employers featured by the Cleveland/Bradley Chamber—continues to underpin space needs in 20–150K SF ranges, with occasional larger requirements.
Civic Catalyst: The City of Cleveland’s acquisition of the former Whirlpool Plant 1 & 2 sites (≈50 acres) in August 2025 is a significant redevelopment lever for downtown and surrounding industrial corridors, with potential to reshape near-term land use and long-term absorption.
“The Whirlpool sites give Cleveland the chance to convert legacy industrial land into a higher-and-best-use engine—jobs, new product, and a more connected downtown.” — David Melton
Nationally, Q3 2025 saw industrial fundamentals steady: vacancy around 7.6%, leasing volume improving, and net absorption re-accelerating as new deliveries slowed from the 2021–2023 building wave. This backdrop tends to benefit secondary markets with limited new construction—like Cleveland—where functional, interstate-proximate inventory is scarce. JLL
For nearby Chattanooga (separate MSA)—a relevant comparison point along the same logistics spine—industrial vacancy registered ~2.7% in Q3 2025, with average asking rents around $7.76/SF metro-wide. Chattanooga’s tightness illustrates the broader I-75 corridor dynamic and supports Cleveland’s pricing power for quality space, even as assets and labor pools differ.
“When a neighboring market is sub-3% vacant, it naturally lifts the entire corridor. Cleveland benefits from that demand halo—especially for users who want speed-to-market but a more cost-effective footprint.” — David Melton
What’s moving:
Mid-box distribution (50–150K SF): 3PLs and regional distributors seeking proximity to Chattanooga, Knoxville, and Atlanta while optimizing occupancy cost.
Light manufacturing (20–100K SF): Suppliers tied to automotive, consumer durables, and building products, prioritizing labor access and power availability.
Flex/smaller bay (5–25K SF): Local operators upgrading for dock access, clear height, and room for trailer staging.
Typical structures we’re seeing (indicative):
Base terms: 5–7 years for mid-box; 3–5 for smaller/flex.
Escalations: ~3% annually is common in the Southeast.
Concessions: Modest TI for lighting/office refresh; free rent is selective and often tied to term or condition of second-gen space.
Asking levels: $7.20–$7.75/SF/YR on larger warehouse product appears frequently in active Cleveland listings; smaller/flex can push above that, depending on specs and location.
“If you’ve got clear heights, docks, and trailer capacity near I-75, you’re positioned to hold rate. Functionality beats aesthetics in this segment every time.” — David Melton
Cleveland has avoided the speculative overbuild seen in larger Sun Belt hubs. That restraint matters in 2025, as the U.S. pipeline decelerates and deliveries temper, allowing national absorption to catch up. Locally, the Cleveland Industrial Park and adjacent corridors continue to offer expansion paths, and the Whirlpool site control introduces a long-run opportunity set (brownfield remediation, mixed-use, or modern industrial infill) that could broaden the inventory profile over the next cycles.
I-75 / Exit nodes: Quick truck access and regional reach keep these addresses top of list for distributors.
Cleveland Industrial Park (NE): Newer large-format options have asking indications in the mid-$7s NNN, reinforcing the market’s competitive position vs. larger metros.
Downtown & near-core assets: Older buildings can still compete if landlords deliver functional upgrades (LEDs, docks, yard). Whirlpool site control may unlock connectivity improvements over time.
Transaction activity remains selective in 2025 across the U.S. as investors navigate higher debt costs and shifting macro policy. Yet for Cleveland, the rent-to-replacement spread and operational simplicity of well-located mid-box product stand out. Private capital and regional funds show the most interest in stabilized or near-stabilized assets with renewal visibility and functional specs.
Cap rates: Wider than 2022 lows; pricing is most resilient for buildings with 29’–32′ clear, dock-high loading, and trailer parking.
Value-add: Class B/C stock with functional obsolescence is tradable at discounts, with clear scopes (roof, ESFR, truck courts) that can be executed without long downtime.
“Capital right now rewards repeatability. If the building can support the next three users without major capex, you’ll find a bid.” — David Melton
Baseline view:
Steady demand from logistics and light manufacturing users seeking cost-effective footprints near I-75.
Rents to hold a firm floor in the low-to-mid $7/SF range for functional mid-box, with flex/smaller bay commanding premiums; concessions remain targeted.
Tight labor but manageable: Bradley County’s sub-4% unemployment suggests employers will continue competing on wage/benefit mix and commute convenience.
Catalyst watch: Whirlpool site planning milestones, incremental park expansions, and potential supplier announcements will shape the next absorption leg.
National crosswinds easing: With national vacancy appearing near a peak and development slowing, secondary markets with disciplined supply—like Cleveland—should see incremental tightening as 2026 approaches.
Owners: Invest in functionality—docks, yard depth, lighting, power, and clear height. These drive rent and renewal leverage more than cosmetic upgrades.
Occupiers: Start early. Options are fewer than in big metros; for 50–150K SF needs, expect competitive tours on the best boxes and plan TI with long-lead times.
Investors: Focus on location certainty (I-75 proximity), spec parity, and credit clarity. Assets that clear those bars remain financeable and liquid.
“Cleveland isn’t trying to be a mega-hub. It wins by being efficient, affordable, and close enough to everything that matters in the Southeast.” — David Melton
Cleveland/Bradley County Chamber — Economic Indicators: Local unemployment and trends (July 2025 update).
Cleveland/Bradley County Chamber — Existing Industry: Local employer landscape and industrial base.
City of Cleveland / local press — Whirlpool Plant 1 & 2 acquisition (Aug. 2025): Redevelopment catalyst, ≈50 acres.
Active Listings (indicative asks): Cleveland Industrial Park & other availabilities in the $7.20–$7.75/SF/YR range.
JLL — U.S. Industrial Market Dynamics, Q3 2025: National vacancy ~7.6%, pipeline deceleration.
Chattanooga Chamber — Real Estate Q3 2025 (regional comparator): Industrial vacancy ~2.7%, asking rent ~$7.76/SF (separate MSA).
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