Issue link: http://savannah.uberflip.com/i/1514376
40 20 Savannah Area Chamber of Commerce 2024 Economic Trends Industry: Real Estate Office and Industrial Markets Metro Savannah's office market recorded a substantial drop in the overall vacancy rate to 4.3% from 9.2% (in 2022,Q4) as of the fourth quarter of 2023. Of non-owner-occupied office space 5,000 square feet or larger, the office space inventory in Metro Savannah was 3.85 million square feet. The market occupancy rate remained above 90% for the third consecutive year at 95.7% after hovering in the range of 86% to 91% in the preceding five years. In the MSA, office rental rates increased 12.5% in 2023, and had the largest upswing in the downtown Savannah central business district (+22%). Rates also increased in the Southside (+18%), Westside (+10.7%), and Islands (+9.6%), and Midtown (+2%) markets. Source: Gilbert & Ezelle Commercial Real Estate, Cushman & Wakefield Marketbeat Report, Q4 2023, 12/2023. Savannah MSA Office Market 2023: 4 th Quarter Total Square Feet Reported 3,850,000 Vacant Space (sq. ft.) Reported 165,041 Vacancy Rate 4.3% Gross Rental Rate (per sq. ft.) by Market Savannah MSA $25.16 Westside $22.82 CBD/Downtown $29.54 Midtown $23.67 Southside $24.14 Islands $25.64 Source: Gilbert & Ezelle | Cushman & Wakefield Marketbeat Report, Q4 2023, obtained 12/2023. 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 2023. Port-related trade and distribution increased demand amid continuing substantial supply-side growth. With the delivery of new inventory, the overall vacancy rate is 7% at the end of 2023. New inventory of 21.1 million square feet was completed and delivered in 2023. Savannah Industrial Market 2023:Q4 2022:Q4 2021:Q4 2020:Q2 Total Inventory 125,854,000 Sq. Ft. 105,027,000 Sq. Ft. 89,300,000 Sq. Ft. 78,899,000 Sq. Ft. New Construction Added to Inventory 21,100,000 Sq. Ft. 15,700,000 Sq. Ft. 8,000,000 Sq. Ft. 7,000,000 Sq. Ft. Total Inventory Available for Sale/Lease 8,748,000 Sq. Ft. 702,000 Sq. Ft 480,000 Sq. Ft 1,950,000 Sq. Ft Overall Vacancy Rate 7.0% 0.7% 0.5% 3.5% Source: Gilbert & Ezelle | Cushman & Wakefield Marketbeat Report, Q4 2023, obtained 12/2023.