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46 Savannah Area Chamber of Commerce 2022 Economic Trends 18 Industry: Real Estate Office and Industrial Markets Metro Savannah's office market experienced a notable decline in the overall vacancy rate as of the fourth quarter of 2021. Of non-owner occupied office space 5,000 square feet or larger, the office space inventory in Metro Savannah surpassed 3.9 million square feet. The market occupancy rate increased to 91.3% after hovering in the range of 77% to 86% in the preceding five years. In the MSA, office rental rates increased 3.5% in 2021, and increased faster in the downtown central business district (+3.6%). Rates on the Islands increased 0.6%, while rates declined on the Southside (-6%) and Westside (-7%). Source: Gilbert & Ezelle Commercial Real Estate, Cushman & Wakefield Marketbeat Report, Q4 2021, 12/2021. Savannah MSA Office Market 2021: 4 th Quarter Total Square Feet Reported 3,913,000 Vacant Space (sq. ft.) Reported 340,500 Vacancy Rate 8.7% Gross Rental Rate 1 (per sq. ft.) by Market Savannah MSA $22.13 Westside $20.25 CBD/Downtown $24.27 Midtown $23.23 Southside $19.84 Islands $23.05 Source: Gilbert & Ezelle | Cushman & Wakefield Marketbeat Report, Q4 2021, obtained 12/2021. (1) Gross Rental Rate refers to the overall weighted average for all property classes. Industrial Market Metro Savannah's industrial and warehousing market surged again in 2021. Port-related trade and distribution increased demand amid continuing substantial supply-side growth, pushing down the overall vacancy rate to a very low 0.54%. New inventory of about 8 million square feet was completed and delivered in 2022. Additionally, a similar amount of new inventory is under construction with delivery expected in 2022. Savannah Industrial Market 2021:Q4 2020:Q2 2019:Q4 2018:Q4 Total Inventory 89,300,000 Sq. Ft. 78,899,000 Sq. Ft. 70,039,472 Sq. Ft. 58,843,486 Sq. Ft. New Construction Added to Inventory 8,000,000 Sq. Ft. 7,000,000 Sq. Ft. 11,200,000 Sq. Ft. 3,200,000 Sq. Ft. Total Inventory Available for Sale/Lease 480,000 Sq. Ft 1,950,000 Sq. Ft 1,450,000 Sq. Ft 294,218 Sq. Ft Overall Vacancy Rate 0.5% 3.5% 2.1% 0.5% Source: Gilbert & Ezelle | Cushman & Wakefield Marketbeat Report, Q4 2021, obtained 12/2021.