Savannah Chamber

Savannah Economic Trends Brochure 2021

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47 The commercial market remains strong and vibrant in important districts and retailing corridors in the region. At the western end of the Savannah riverfront district, the Kessler Collection's $500 million Plant Riverside District project opened its doors in 2020. This project includes the JW Marriot luxury hotel, a riverside park, multiple dining options, and specialty retail space. The project expects to create more than 700 new jobs and will be a point of attraction for local residents and visitors for years to come. Regent Partners' and Mariner Group's development of the $600 million, 54 acre mixed use Eastern Wharf project continues despite the February 2020 fire that heavily damaged an apartment complex under construction. After a re-start, residents at the apartment complex are expected to move in as early as May 2021. The development also hosts single family homes, of which occupancy began in 2019. There will be 30,000 square feet of retail space and 80,000 square feet of high-end office space available upon completion of the project. Hyatt announced plans for the 193-room Thompson Savannah hotel on site, also expected to open in May 2021. The extension of the Riverwalk to connect to the existing riverside walkway is expected to start in 2021 as well. Phase two of Riverworks is an $80 million apartment and parking complex expected to begin construction in the third quarter of 2021. The New Hampstead development in western Chatham mostly between Fort Argyle Road and Little Neck Road is expected to see groundbreaking on new residential development in 2021. Plans for the 4,300 acre project include parks, schools, 9,500 residential units, and 1.7 million square feet of commercial development adding about $4 billion in property value to the area upon build-out. Development continues in Pooler with the 170 acre Pooler Towne Center development near I-16 and the Pooler Parkway. Much of that activity is driven by population growth and infrastructure development in the immediate area. Additionally, in Savannah's Canal District, construction continues on schedule for the $165 million, 10,000 seat arena. By Spring 2021 the shell of the building will visibly emerge while anticipated completion is expected in the first quarter of 2022. The arena is one component of the master plan for the Canal District, plans for which also include an apartment building, retail space, community marketplace and entrepreneurial center, roadway improvements, and recreational green space with multi-use pedestrian trails. To the south in Bryan County, at the new Exit 82 at Belfast Keller Road on Interstate 95, infrastructure development is continuing for Raydient Properties' 3,800 acre development. Approximately 3,400 residential units, along with 3 million square feet of commercial space and 15 million square feet of light industry space is planned for development. Real Estate: Logistics and Distribution Savannah's industrial and warehousing market extended its multi-year trend of substantial growth in 2020. New inventory of 8 million square feet was completed and delivered in 2020, bringing the regional total to 79 million square feet. Even so, continued exceptional growth in port activity and distribution resulted in a very healthy vacancy rate of 3.5%, up slightly from 2019. This is well below the historical average of 5.6%, thus signaling continued strong demand thereby encouraging additional investment in the sector. 2021 is expected to be another very good year as very strong port activity continues. Approximately 7 million square feet of new inventory is under construction with delivery expected in 2021. Nearly 38 million square feet have been added to the market in the previous five years. Recent trends are such that roughly 50% of new developments are pre-leased at the start of construction with the remaining space absorbed by the time construction of the facility is completed. The market continues to attract the attention of large nationwide developers as the current number one market in the country for industrial/distribution development. The passage of the E-commerce Freeport Exemption in Savannah in 2019 is expected to enhance long-run development in the Logistics sector. The region currently has ample land available and zoned for further logistics development, up to 130 million square feet. For example in Chatham County, plans for the Rockingham Farms development on Veteran's Parkway were approved. The 1,035 acre project, a joint venture of the developer, SEDA, and the City of Savannah, will add 10 million square feet of warehousing over ten years and add up to 2,500 jobs. The regional Joint Development Authority (Bryan, Bulloch, Chatham, Effingham counties) is developing a workforce development initiative to create a pipeline of highly trained and qualified individuals to work in the logistics sector as it grows in the long run. The Savannah Economic Development Authority has actively worked to enhance the ecosystem for advanced logistics and distribution in the region. In 2019, SEDA received $400,000 from the State of Georgia to investigate the development of a Logistics Technology Innovation Hub. With the help of The Bridge Fund and multiple partners, Savannah Logistics Technology Corridor is expected to grow into a globally recognized hub for the development of technology supporting the logistics industry. In May 2020,

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