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62 Savannah Area Chamber of Commerce 2021 Economic Trends 18 Industry: Real Estate Office and Industrial Markets Metro Savannah's office market experienced a modest decline in the overall vacancy rate as of the second quarter of 2020. Of non-owner occupied office space 5,000 square feet or larger, the office space inventory in Metro Savannah surpassed 3.5 million square feet. The market occupancy rate increased to 88.4% after hovering in the range of 77.4% to 86% in the preceding five years. In the MSA, office rental rates increased 0.4% from 2020, and increased faster on the Islands (+5%), Southside (+1.2%), and Westside (+1.1%) reflecting relatively stronger demand in those areas. Source: Gilbert & Ezelle Commercial Real Estate, Cushman & Wakefield Marketbeat Report, Q2 2020, 12/2020. Savannah MSA Office Market 2020: 2 nd Quarter Total Square Feet Reported 3,522,000 Vacant Space (sq. ft.) Reported 444,000 Vacancy Rate 12.6% Gross Rental Rate 1 (per sq. ft.) by Market Savannah MSA $21.38 CBD/Downtown $23.42 Islands $22.92 Southside $21.13 Effingham County $18.82 Westside $21.81 Bryan County $20.16 Source: Gilbert & Ezelle | Cushman & Wakefield Marketbeat Report, Q2 2020, obtained 12/2020. (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 2020. Port-related trade and distribution increased demand amid continuing substantial supply-side growth, leaving the overall vacancy rate at a very healthy level of 3.5%. New inventory of 7 million square feet was completed and delivered in 2020. Additionally, 9 million square feet of new inventory is under construction with delivery expected in 2021. Savannah Industrial Market Total Inventory 78,899,000 Sq. Ft. New Construction Added to Inventory 7,000,000 Sq. Ft. Total Inventory Available for Sale/Lease 1,950,000 Sq. Ft Overall Vacancy Rate 3.5% Source: Gilbert & Ezelle | Cushman & Wakefield Marketbeat Report, Q3 2020, obtained 12/2020.