Issue link: http://savannah.uberflip.com/i/1489710
50 Savannah Area Chamber of Commerce 2023 Economic Trends 18 Industry: Real Estate Office and Industrial Markets Metro Savannah's office market recorded a small uptick in the overall vacancy rate to 9.2% (from 8.7% in 2021,Q4) as of the fourth quarter of 2022. Of non-owner-occupied office space 5,000 square feet or larger, the office space inventory in Metro Savannah surpassed 3.95 million square feet. The market occupancy rate remained above 90% for the second consecutive year at 90.8% after hovering in the range of 77% to 86% in the preceding five years. In the MSA, office rental rates increased 1.1% in 2022, and increased faster in the Southside market (+2.7%). Rates increased on the Westside (+1.8%) and Islands (1.5%), while rates declined 0.1% in Savannah's Downtown (Central Business District) market. Source: Gilbert & Ezelle Commercial Real Estate, Cushman & Wakefield Marketbeat Report, Q4 2022, 12/2022. Savannah MSA Office Market 2022: 4 th Quarter Total Square Feet Reported 3,951,000 Vacant Space (sq. ft.) Reported 363,000 Vacancy Rate 9.2% Gross Rental Rate 1 (per sq. ft.) by Market Savannah MSA $22.37 Westside $20.61 CBD/Downtown $24.24 Midtown $23.23 Southside $20.38 Islands $23.40 Source: Gilbert & Ezelle | Cushman & Wakefield Marketbeat Report, Q4 2022, obtained 12/2022. (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 2022. Port-related trade and distribution increased demand amid continuing substantial supply-side growth, holding the overall vacancy rate down at a very low 0.67%. New inventory of about 15.7 million square feet was completed and delivered in 2022. Additionally, about 20 million square feet of new inventory is under construction with delivery expected in 2023. Savannah Industrial Market 2022:Q4 2021:Q4 2020:Q2 2019:Q4 Total Inventory 105,027,000 Sq. Ft. 89,300,000 Sq. Ft. 78,899,000 Sq. Ft. 70,039,472 Sq. Ft. New Construction Added to Inventory 15,700,000 Sq. Ft. 8,000,000 Sq. Ft. 7,000,000 Sq. Ft. 11,200,000 Sq. Ft. Total Inventory Available for Sale/Lease 702,000 Sq. Ft 480,000 Sq. Ft 1,950,000 Sq. Ft 1,450,000 Sq. Ft Overall Vacancy Rate 0.7% 0.5% 3.5% 2.1% Source: Gilbert & Ezelle | Cushman & Wakefield Marketbeat Report, Q4 2022, obtained 12/2022.