Cleveland Office Figures Q2 2026

The Cleveland office market remained under pressure in Q2 2026, though fundamentals improved relative to a year ago. Net absorption totaled negative 46,000 sq. ft., reversing the prior quarter’s gains, while vacancy held essentially flat at 19.9%. Despite the quarterly setback, absorption improved substantially from Q2 2025, when the market recorded nearly 188,000 sq. ft. of occupancy losses.

Market conditions remain bifurcated by asset quality. Class A vacancy declined year-over-year to 18.2%, while Class B vacancy climbed to 21.6%, reflecting continued tenant preference for higher-quality space. Leasing activity gained momentum, increasing 58% from Q1 to 310,000 sq. ft., led by transactions Downtown and in the West submarket. Asking rents remained stable at $19.44 per sq. ft., demonstrating pricing resilience despite elevated vacancy.

New supply pressures have largely dissipated. No projects delivered during the quarter, and the construction pipeline has contracted to just 56,000 sq. ft.—down nearly 95% from one year ago. As limited new inventory enters the market and leasing activity improves, Cleveland's office market appears to be moving toward a more balanced supply-demand environment despite persistent occupancy challenges.