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Area, City and Neiehhorhood Analrsis, Continued According to Colliers, the Cleveland industrial market has leveled off. In 2020 and 2021 the market absorbed �^ •- over 5,000,000 square feet Most of the absorption u '" resulted from new construction as industrial •" businesses increasingly seek more efficient, modern and more functional buildings. A new 695,383 s.F. j •�- ti .. Amazon fulfillment center in Akron is now one of u'' seven Amazon locations in northeast Ohio with two , M more in the pipeline. The industrial segment seems to be the least affected by the pandemic. Absorption in 2022 dropped to around 1,000,000 square feet, however vacancy has remained around 4%. 2023 absorption was 1.4 million square feet. Overall, the industrial market in northeast Ohio is primarily made up or general industrial assets with 173.9 million square feet of inventory, warehouse distribution racilitics with 90.4 million square feet is second and research and development/flex buildings third with 22 million square feet. Most of the absorption resulted from new construction as industrial businesses increasingly seek more efficient, modern and more functional buildings. A new 695,383 square foot Amazon fulfillment center in Akron is now one of seven Amazon locations in northeast Ohio with two more in the pipelines Weaknesses in supply chain strategies were exposed by the pandemic, including reliance on offshore sourcing, lack of redundancies and the downside of just -in -time inventory. This has resulted in new interest in 'just -in -case" inventories, and "reshoring" strategies to bring manufacturing back to the U.S. The logistics industry has also benefited from the pandemic with huge growth in online sales. Global logistics real estate company Prologis, reports that accelerated E-commerce adoption requires investment in distribution capabilities. They report that each I % shift of demand to online sources requires 46 million square feet of net demand in the US. Prologis Research estimates that 400 MSP or more of total additional U.S. logistics real estate demand will be created in the next two to three years as companies adjust to higher e-commerce volumes and higher inventory levels.9 Existing logistics markets such as Cleveland and Akron will likely benefit from these changes going forward. While Cleveland's industrial market has remained balanced over recent years, Costar reports slowing leasing activity and negative net absorption over recent months pushing vacancy slightly higher in 2024. Vacancy still sits near an all-time low at 3.5% compared to the national benchmark of 6.3%. Limited availability of modern industrial space is weighing on leasing activity in Cleveland. The availability rate in Cleveland sits near 4.9% compared to the national benchmark of 8.8%. construction starts, and space underway in Cleveland totals 2.3 million SF, representing 0.6% of inventory, which is well below peer markets in the region as well as die national average of 2.0%. P. BRAMAN & CO., INC. - Real Bstnle Appmimis & Camuliing www. cpb xom