TRENDS & INSIGHTS

SAVANNAH, GA

YEAR END 2024

9.4%

VACANCY RATE

8.0 M SF

YTD ABSORPTION

4.6 M SF

NEW SUPPLY

10.2 M SF

UNDER CONSTRUCTION

DOWNLOAD REPORT

Through Q4 2024, the Savannah Industrial Market posted a Year-End Absorption total of 8M SF. This excludes the delivery of the 12M SF Hyundai Megaplant. The total Savannah industrial market has doubled in size over the last four-year period, and is now equal to 150M SF.

Vacancy increased to 9.4% following the delivery of approximately 13M SF of speculative space to the market in 2024. The amount of industrial product under construction has slowed to 10.2M SF, of which 7M SF is speculative. The current vacancy rate of 9.4% is expected to decline in 2025 subject to historical leasing volumes remaining strong. As the Southeastern United States continues to grow above the national average, the Port of Savannah will be the benefactor of the region’s success.

TEU volumes have increased by 13% year-over-year from November 2023 to November 2024. The Georgia Ports Authority projects annual TEU volumes to reach 10M by 2030 and 20M TEUs by 2050. The Port of Savannah is currently implementing a $4.5B expansion over the next twelve years to achieve these projections.

TRENDS & INSIGHTS

2024 | Q3

9.3%

VACANCY RATE

8.5 M SF

YTD ABSORPTION

3.2 M SF

NEW SUPPLY

11.0 M SF

UNDER CONSTRUCTION

DOWNLOAD REPORT

Through Q3 2024, Savannah’s year-to-date absorption of 8.5M SF is equal to Atlanta’s year-to-date total through the same period. Many new spec projects have been delivered in 2024 and rental rates have declined slightly in the near term. Most leasing activity in 2024 has been in the 100,000 to 400,000 SF size range, although recent prospects cover all size ranges, including bulk distribution.

Class A, well-located spec deliveries continue to benefit from consistently strong leasing volumes. As the current 11M SF construction pipeline continues to drop, 2025 rental lease rates will increase again in conjunction with proven annual increases in the port’s projected TEU volumes.

The Port of Savannah’s year-to-date TEU volume of 4,131,009 is up 13.5% Q1 through Q3 of 2024, compared to the same period for 2023. TEU volumes for September 2024 were up 11.9% over September 2023. Overall container capacity is currently equal to 6M TEUs per annum and is projected to grow to 9.5M TEUs by 2026.

TRENDS & INSIGHTS

2024 | Q2

8.5%

VACANCY RATE

6.5 M SF

YTD ABSORPTION

5.2 M SF

NEW SUPPLY

20.6 M SF

UNDER CONSTRUCTION

In Q2, the Savannah industrial vacancy rate increased to 8.5% from 7.7% in the previous quarter of 2024, due to historically high levels of deliveries. Leasing demand has kept pace with building completions and Savannah continues to demonstrate itself as one of the top growth markets in the nation. The market’s net absorption remained strong with a YTD absorption of 6.5 million square feet (Atlanta at 6.2M YTD) and a quarterly net absorption of 3.8 million square feet. 5.2 million square feet of new inventory was delivered in Q2, increasing Savannah’s total inventory to nearly 137 million square feet.

The development pipeline has ticked down from 21.8 million square feet in Q1, with 20.6 million square feet currently under construction. Fewer new projects are in the early stages of development and land transactions were minimal in 2023. The average rental rate slightly decreased from $6.92 psf in Q1 to $6.84 psf in Q2 correlating with the new supply. The majority of the leasing demand is coming from international companies and West Coast users looking to diversify their supply chain.

The Port of Savannah has posted a YTD container volume of 2,701,136 TEUs, a 14% increase from the same period in 2023 (Q1+Q2). TEU volumes for June 2024 were up 19% over June 2023.

Savannah will absorb the above-average speculative deliveries in 2024 and early 2025. This is primarily due to land scarcity within 15 miles of the port, long-term land entitlement challenges, TEU volume growth, and strong international and West Coast user demand. The market will likely see a shortage of space again in mid-late 2025 through 2026. Rent growth is a given in the medium-long term for properties close to the port. Users looking for lower rental rates will also drive new construction further inland on I-16 toward Atlanta, and North and South along I-95 within a 30 to 40-mile range of the Port of Savannah.

TRENDS & INSIGHTS

2024 | Q1

VACANCY RATE

7.7%

YTD ABSORPTION

2.7 M SF

NEW SUPPLY

3.1 M SF

UNDER CONSTRUCTION

21.8 M SF

Savannah's industrial market started off 2024 strong, despite the vacancy rate slightly increasing to 7.7%, from 7.1% at the end of 2023. 2.7 million square feet was absorbed in the first quarter. 3.1 million square feet of new inventory was delivered, and 21.8 million square feet of new projects remained under construction.

TRENDS & INSIGHTS

YEAR END 2023

7.1%

VACANCY RATE

14.1 M SF

YTD ABSORPTION

5.7 M SF

NEW SUPPLY

22.0 M SF

UNDER CONSTRUCTION

In Savannah, the vacancy rate increased to 7.1% in Q4 of 2023. 14.1 million square feet was absorbed throughout the year, and 5.7 million square feet of new inventory was delivered in Q4.

There is a substantial amount of construction underway in Savannah, and the city’s industrial market continues to grow. 22 million square feet remained under construction at the end of the year.

16.8 M SF

19.1 M SF

99.5 M SF

TRENDS & INSIGHTS

YEAR END 2022

0.92%

VACANCY RATE

YTD ABSORPTION

UNDER CONSTRUCTION

TOTAL INVENTORY

At the end of 2022, Savannah continued to excel and rank as one of the top industrial real estate markets in the nation. The total absorption reached over 16 million square feet, and the vacancy rate remained under 1% for the year.