Issue link: http://savannah.uberflip.com/i/1079136
63 Savannah Area Chamber of Commerce 2019 Economic Trends 18 Industry: Real Estate Office and Industrial Markets Metro Savannah's office market experienced a decrease in the overall vacancy rate as of the fourth quarter of 2018. Of non- owner occupied office space 5,000 square feet or larger, the office space inventory in Metro Savannah surpassed 3.4 million square feet. The market occupancy rate increased to 86% after hovering in the range of 77.4% to 84.2% in the preceding five years. In the MSA, office rental rates increased 3.3% from 2017, and increased faster on the Westside (+4.9%), Downtown (+3.6%), and the Islands (+3.4%) reflecting relatively stronger demand in those areas. Source: Gilbert & Ezelle Commercial Real Estate, Cushman & Wakefield Marketbeat Report, Q4 2018, 1/2019. Savannah MSA Office Market 2018: 4 th Quarter Total Square Feet Reported 3,423,381 Vacant Space (sq. ft.) Reported 479,000 Vacancy Rate 14.0% Gross Rental Rate 1 (per sq. ft.) by Market Savannah MSA $20.45 CBD/Downtown $22.80 Islands $21.78 Southside $20.53 Effingham County $18.25 Westside $20.21 Bryan County $19.10 Source: Gilbert & Ezelle | Cushman & Wakefield Marketbeat Report, Q4 2018, obtained 1/2019. (1) Gross Rental Rate refers to the overall weighted average for all property classes. Industrial Market Metro Savannah's industrial and warehousing market experienced notable growth in 2018. Economic growth in the region has increased demand, driving the overall vacancy rate down to 0.5%, less than half of the previous year's rate and down record highs of nearly 20% in 2010. New inventory of 3.2 million square feet was completed and delivered in 2018. Additionally, 9.3 million square feet of new inventory is under construction with delivery expected in 2019, with 50% already committed to users. Savannah Industrial Market Total Inventory 58,843,486 Sq. Ft. New Construction Added to Inventory 3,200,000 Sq. Ft. Total Inventory Available for Sale/Lease 294,218 Sq. Ft Overall Vacancy Rate 0.5% Source: Gilbert & Ezelle | Cushman & Wakefield Marketbeat Report, Q4 2018, obtained 1/2019.