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

Following a multi-year expansion that culminated in record-setting absorption at the end of 2024, the Toledo-area industrial market continued its transition toward normalization through the second half of 2025. Based on Reichle Klein Group’s end-of-year survey, the industrial sector remains the strongest commercial property type in the region, though the pace of activity slowed and market conditions became more nuanced beneath still-strong headline metrics.

Compared with Endyear 2024—when nearly 3.8 million square feet of net absorption drove overall vacancy down to roughly 2.25%—2025 represented a clear moderation in momentum. That shift became evident by Midyear 2025, when net absorption turned modestly negative and vacancy rose into the mid-2% range, and it persisted through the balance of the year. Even so, vacancy at year-end 2025 remains historically low, well below long-term averages, and the market continues to reflect fundamentally healthy conditions rather than structural weakness.

Activity during the second half of 2025 was described as “business as usual” by our agents. Transaction velocity slowed from the exceptional pace of the prior several years, but agents did not observe a broad-based pullback in user interest. For many tenants, lease rates were not the primary constraint. Instead, users focused on the availability of the right space—appropriate size, configuration, clear heights, loading, and, critically, the timing at which a facility could be delivered or made available for occupancy. In multiple cases, users demonstrated a willingness to accept higher rental rates when suitable space could meet operational and scheduling requirements.

Market performance in 2025 continued to be influenced by a limited number of large users and specialized property types. First Solar remained active throughout the year, particularly leasing warehouse space to support finished goods inventory. In addition, northwest Ohio is seeing increased interest from data center users, reflecting broader national trends in digital infrastructure investment. One of the largest projects currently under construction in the market is a 700,000+ square foot build-to-suit data center for Meta in northern Wood County, underscoring the region’s growing relevance for this highly specialized use.

RKG’s agents also began receiving early-stage inquiries from international users—primarily from Europe and Canada—related to potential site selection in response to tariff initiatives. Many of these inquiries are automotive-related, though most remain exploratory. Despite Stellantis announcing an additional product line at its Toledo Assembly Complex, a corresponding wave of supplier-driven leasing activity has not yet emerged.

As the market transitions out of an exceptional growth phase, sentiment among market participants has become more measured. Older inventory is re-entering the market and absorption has normalized. Brokers also note the presence of underutilized space not actively marketed, suggesting effective availability may exceed reported vacancy.