Issue link: http://savannah.uberflip.com/i/1514376
26 Savannah's Canal District Master Plan aims to ensure socially equitable economic growth for the next 50 years. The largest contribution thus far, the Enmarket Arena, celebrated the one year anniversary of its opening in 2023 as it welcomed hundreds of thousands of visitors to various live events. Additional plans for development include an apartment building, retail space, community marketplace and entrepreneurial center, roadway improvements, and recreational green space with multi-use pedestrian trails. The Tide to Town Trail system will further enhance connectivity of the canal district with 75% of Savannah's neighborhoods on safe walking and biking infrastructure. Funding in the amount of $37 million is allocated to the redevelopment of the Waterworks building into a variety of commercial and other uses over the next five years, with investment in the amount of $10 million expected in 2024. Evolution of large-scale mall retailing center continues in 2024 with more details for the redevelopment of components of the southside's Savannah mall expected in the coming year. In general, Oglethorpe mall operations remain healthy. Plans for redevelopment of the northwest quadrant, including the former Sears department store which closed in 2018, include multifamily housing. Additional commercial development is anticipated in West Chatham County in the vicinity of the Hopeton Landing residential development and New Hampstead. To the south in Bryan County at the Raydient development on I-16, commercial activity is expected to emerge in 2024 as construction of residential housing continues in the Heartwood at Richmon Hill community. Likewise, additional commercial offerings are expected as population growth and residential development continue westward along I-16. Real Estate: Logistics and Distribution The footprint of the regional logistics industry is expected to double during the next decade. 2023 saw the delivery of 21 million square feet and brings the regional total to nearly 126 million square feet. With the delivery of this substantial amount of logistics inventory, the vacancy rate increased to 7% at the end of 2023, a figure more typically associated with equilibrium in the market as compared to the unsustainably low vacancy rates (less than 1%) in 2021 and 2022. In Chatham County, the Rockingham Farms development on Veteran's Parkway delivered over a million square feet in 2024 with additional delivery of inventory expected in 2024. A new interchange was completed in 2023 to accommodate the trucking associated with operation of the facilities. 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. Chatham County, in the 12-month period ending June 2023, added 40 firms in the logistics industry. In total, the businesses employ about 16,500 workers. 1,800 workers in the sector are GPA employees and 2,200 International Longshoremen union members support port operations. Effingham County's logistics and distribution landscape experienced significant growth in 2023 with the establishment of three new private industrial parks set to contribute 6.2 million square feet of industrial space to the local market. Additionally, the county has welcomed five new distribution centers (SCM Logistics, Bradshaw, eLogistics, Lowes, and one pending announcement), contributing to a surge in job opportunities. The logistics sector employs about 700 workers in 63 establishments in the county. In Bryan County, 34 establishments employ about 600 workers, a jump of nearly 250 jobs from mid-2022. Following the 2022 delivery of 2.5 million square feet of distribution space, an additional 3 million square feet of industrial warehouse space was delivered in 2023. Further, more than 3 million more square feet are expected for delivery in 2024. About 23 million square feet of industrial and logistics inventory is anticipated for delivery in north Bryan County over the next five to six years. In Liberty County, 44 firms in the logistics sector employ about 1,850 workers. With three facilities currently under construction, it is expected another 400 will be employed after completion. Liberty County's logistics and distribution sector will experience significant growth in the future, as four companies have issued bonds or signed lease agreements to build/expand facilities in the area. The companies (Hugo Boss, Westin Furniture, Flint Development, and Creative Home IDeas) will add 887,000 square feet of new distribution space, create roughly 385 jobs, and require $247 million in total investments. Additionally, Westin Furniture plans to further expand their facility by an additional 250,000 square feet, and Creative Home Ideas by 350,000 square feet. With these expansions, an additional 200 jobs will be added to the market. Long-term prospects for logistics and distribution in the region are exceptionally strong. With the Georgia Ports Authority plan to double capacity, the resultant demand for distribution space will continue to grow west along the I-16 corridor and along I-95. The Savannah metro area is poised to mature into one of the most important distribution networks in the country.