Office & Industrial Real Estate

Savannah Industrial Market Statistics

Fourth Quarter 2016


The outlook for 2017 is very favorable with the stabilization of the industrial market occurring in 2014/2015 with vacancy rates well below the 8% market equilibrium and reemergence of speculative construction with brisk leasing activity. After a seven-year period with limited construction activity, over 3.1 MSF of product was brought online in 2016. Even with the 5.0 MSF that will deliver in 2017, the market demand is expected to continue to outpace delivery of speculative product as new tenants continue to enter the market.
Market
Inventory**
Overall Vacancy Rate
Warehouse/Distribution Net Rental Rate*
Downtown/Eastside
3,302,474
1.1%
---
Port Corridor
16,052,074
0.7%
$4.68
Crossroads/Dean Forest
25,934,719
5.1%
$4.30
Southside/Highway 17
2,327,432
0.2%
$6.35
Westside
2,843,285
1.4%
---
CHATHAM COUNTY TOTAL
50,459,984
3.0%
$4.32
Gilbert & Ezelle Real Estate Services, Cushman & Wakefield Alliance Marketbeat Report, Q4 2016
*Rental rates reflect $psf/year and do not include space available for sublease.
**Owner and tenant occupied buildings 5,000 square feet and above


Savannah Office Market Statistics

Fourth Quarter 2016

Savannah's overall vacancy rate increased from 16.7% in Q2 2016 to 17.2% in Q4 2016 as minor consolidation activity continues in the insurance and financial services sectors. Net absorption continues to be driven by lateral movement of existing tenants versus new tenants entering the market.

The overall average asking rental rate increased from $19.05 per square foot (PSF) in Q2 2016 to $19.28 PSF in Q4 2016.
Market Inventory No. of Bldgs Vacancy Rate Overall Wtd. Avg.  All Classes Gross Rental Rate
Historic Downtown CBD 1,182,094 41 14.5% $21.60
Southside 847,905 36 18.8% $19.23
Westside 787,427 35 23.5% $18.61
Effingham County 246,454 24 8.9% $17.77
Bryan County 170,346 17 17.5% $17.80
Islands 172,151 11 11.2% $20.67
         
CBD 1,182,094 41 14.5% $21.60
NON-CBD 2,224,283 123 18.7% $18.81
SAVANNAH MSA TOTAL 3,406,377 164 17.2% $19.28
Gilbert & Lattimore Commercial Real Estate, Cushman & Wakefield Alliance Marketbeat Report, Q4 2016
Survey includes multi-tenant and single tenant buildings, 5,000 square feet and above. Owner-occupied buildings are not included.

 
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