Reichle Klein Group’s 2025 Mid-Year Industrial Market Overview

After a record-setting year-end in 2024, the Reichle Klein Group mid-year 2025 market survey found the Toledo, Ohio-area industrial property market moderated in the first half of 2025, showing signs of stabilization amid continued healthy user activity. Net absorption reversed slightly and went into negative territory for the first time in over six years, totaling negative 238,211 square feet, marking a pause following the extraordinary momentum that closed out 2024.

The negative net absorption was driven primarily by a handful of larger vacancies in the North Toledo submarket and, to a lesser degree in the South/Southwest submarket. The Perrysburg/Northwood submarket registered positive net absorption of 104,542 square feet. The modest increase in vacancy—from 2.26% to 2.55%—reflects specific move-outs more than a broad decline in activity.

Average asking rents held firm at $5.40 per square foot, down just two cents from year-end. Though down from year-end 2024, North Toledo continued to command the highest rates. The East Toledo/Oregon and South/Southwest submarkets notched solid gains in asking rates while Perrysburg/Northwood lost ground. Much of the rate movement is attributable to available product mix.

Insights from our agents that specialize in industrial space highlight an increasingly functional and balanced market environment. There is more available space and a wider variety of space sizes, resulting in a more usable inventory for active users. Demand remains strong, particularly in the small-to-mid-size range. Additionally, agents have noted more buildings available for sale while lease availability has tightened.

The pipeline of new construction rose significantly during the first half of the year. Total space under construction reached 1,415,000 square feet, nearly doubling the 740,000 square feet recorded at year-end 2024. All projects are build-to-suit, as speculative development remains stalled due to high construction costs and interest rates.

A major announcement in the first half of the year came from Amazon, which plans to build another 200,000-square-foot build-to-suit facility in Perrysburg Township. This reinforces the region’s attractiveness for logistics and distribution.

While 2025 has not matched the expansionary pace of recent years, market fundamentals remain strong. Occupancy dipped slightly, but tenant interest is healthy, vacancy is low, and pricing has held firm—reflecting continued confidence in the region’s industrial base.