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68 Savannah Area Chamber of Commerce 2020 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 2019. 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 87% after hovering in the range of 77.4% to 86% in the preceding five years. In the MSA, office rental rates increased 4.1% from 2018, and increased faster on the westside (+6.7%) and Bryan County (+12.3%) reflecting relatively stronger demand in those areas. Source: Gilbert & Ezelle Commercial Real Estate, Cushman & Wakefield Marketbeat Report, Q4 2019, 1/2020. Savannah MSA Office Market 2019: 4 th Quarter Total Square Feet Reported 3,433,500 Vacant Space (sq. ft.) Reported 449,000 Vacancy Rate 13.1% Gross Rental Rate 1 (per sq. ft.) by Market Savannah MSA $21.29 CBD/Downtown $23.28 Islands $21.83 Southside $20.88 Effingham County $18.75 Westside $21.57 Bryan County $21.45 Source: Gilbert & Ezelle | Cushman & Wakefield Marketbeat Report, Q4 2019, obtained 1/2020. (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 again in 2019. Economic growth in the region has increased demand, leaving the overall vacancy rate at a very healthy level of 2.1%. New inventory of 11.2 million square feet was completed and delivered in 2019. Additionally, 7.5 million square feet of new inventory is under construction with delivery expected in 2020, with 55% to 60% already committed to users. Savannah Industrial Market Total Inventory 70,039,472 Sq. Ft. New Construction Added to Inventory 11,200,000 Sq. Ft. Total Inventory Available for Sale/Lease 1,450,000 Sq. Ft Overall Vacancy Rate 2.1% Source: Gilbert & Ezelle | Cushman & Wakefield Marketbeat Report, Q4 2019, obtained 1/2020.