Coyne adds that a lot of developers underrate Midwest cities such as Cleveland and Detroit. “Detroit and Cleveland are now as strong as they have ever been, but in some ways they are still looked on as old, dying industrial cities.”

He believes the rise of e-commerce, and the need for new distribution facilities, will begin benefitting these cities like it has others. But it is the auto industry that may change the perception of the Midwest. The Cleveland metro area is second only to Detroit in the number of a jobs connected to auto manufacturing, and an increasing amount of this work is done with high-tech tools. “The auto industry has gone from old-line manufacturing to becoming the next Silicon Valley.”

Scannell is a different kind of developer for Cleveland. Although it is not a local company, it has done enough work here to gain the needed familiarity and confidence, Coyne says. “It's unusual for an outside developer to build here, but they get it.”

In the past year, the company has either announced or completed construction projects totaling more than 700,000 square feet in Northeast Ohio, including the spec and build-to-suit facilities currently underway at Cornerstone Business Park in Twinsburg.

Scannell also plans to develop a second building of 197,440 square feet on the 19.4-acre site in Strongsville. The first building will feature 32' clear ceilings and 42 exterior docks. Once complete, the facility will provide T-5 warehouse lighting, an ESFR sprinkler system and build-to-suit office space.

Coyne recently signed the first lease for the property. XL Screw Corp., a master fastener distributor headquartered in Lincolnshire, IL, will relocate from its current Northeast Ohio facility in Brooklyn Heights to take occupancy of 46,400-square-feet in October. Coyne represented Scannell in the negotiations and CBRE vice president George Stevens, represented the tenant.

CLEVELAND—The expansion of the nation's industrial economy is starting to touch areas that haven't seen significant growth in a long time. Scannell Properties has just launched a new 185,840-square-foot spec development located at 14720 Foltz Industrial Pkwy. in west suburban Strongsville, the first such spec in the submarket since 2007.

The company closed on the land this month, and has appointed Newmark Grubb Knight Frank as its exclusive leasing agent for the building, which it plans to finish by this October.

“There are not any institutional players willing to build spec in Cleveland, and local players had taken a step back,” NGKF's vice chairman Terry Coyne, tells GlobeSt.com. But considering the level of demand, and the rather low vacancy rate, “it was time for someone to step forward and build.” He will lead the brokerage team assigned to lease the new development.

A little more than a year ago, the vacancy rate in the metro area stood at 7.9%, according to a NGKF report, and by the end of the first quarter this year it had fallen to 7.2%. And in the last two quarters, the market saw more than one million square feet of net absorption.

Coyne adds that a lot of developers underrate Midwest cities such as Cleveland and Detroit. “Detroit and Cleveland are now as strong as they have ever been, but in some ways they are still looked on as old, dying industrial cities.”

He believes the rise of e-commerce, and the need for new distribution facilities, will begin benefitting these cities like it has others. But it is the auto industry that may change the perception of the Midwest. The Cleveland metro area is second only to Detroit in the number of a jobs connected to auto manufacturing, and an increasing amount of this work is done with high-tech tools. “The auto industry has gone from old-line manufacturing to becoming the next Silicon Valley.”

Scannell is a different kind of developer for Cleveland. Although it is not a local company, it has done enough work here to gain the needed familiarity and confidence, Coyne says. “It's unusual for an outside developer to build here, but they get it.”

In the past year, the company has either announced or completed construction projects totaling more than 700,000 square feet in Northeast Ohio, including the spec and build-to-suit facilities currently underway at Cornerstone Business Park in Twinsburg.

Scannell also plans to develop a second building of 197,440 square feet on the 19.4-acre site in Strongsville. The first building will feature 32' clear ceilings and 42 exterior docks. Once complete, the facility will provide T-5 warehouse lighting, an ESFR sprinkler system and build-to-suit office space.

Coyne recently signed the first lease for the property. XL Screw Corp., a master fastener distributor headquartered in Lincolnshire, IL, will relocate from its current Northeast Ohio facility in Brooklyn Heights to take occupancy of 46,400-square-feet in October. Coyne represented Scannell in the negotiations and CBRE vice president George Stevens, represented the tenant.