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47 21 Savannah Area Chamber of Commerce 2025 Economic Trends Industry: Real Estate Office and Industrial Markets At the close of the fourth quarter in 2024, metro Savannah's office market recorded a slight increase in the overall vacancy rate to 4.9% from 4.3% at year-end 2023. Of non-owner-occupied office space 5,000 square feet or larger, the office space inventory in Metro Savannah was 3.76 million square feet. The market occupancy rate remained above 90% for the third consecutive year at 95.1% after hovering in the range of 86% to 91% in the preceding five years. In the MSA, office rental rates increased 7.0% in 2024, and had the largest upswing in the Westside (+9.2%). Rates also increased in Midtown (+8.4%), the downtown Savannah central business district (+8.1%), the Islands (+5.3%) and the Southside (+4.1%) markets. Source: Gilbert & Ezelle Commercial Real Estate, Cushman & Wakefield Marketbeat Report, Q4 2024, 12/2024. Savannah MSA Office Market 2024: 4 th Quarter Total Square Feet Reported 3,759,000 Vacant Space (sq. ft.) Reported 184,191 Vacancy Rate 4.9% Gross Rental Rate (per sq. ft.) by Market Savannah MSA $26.93 Westside $24.92 CBD/Downtown $31.92 Midtown $25.67 Southside $25.13 Islands $27.00 Source: Gilbert & Ezelle | Cushman & Wakefield Marketbeat Report, Q4 2024, obtained 12/2024. 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 2024. Industrial activity was highlighted by 15 million square feet of inventory absorbed by the Hyundai facility in Bryan County and related supplier manufacturers in the fourth quarter. Port-related trade and distribution increased demand amid continuing substantial supply-side growth. With the delivery of new inventory, the overall vacancy rate is 8.6% at the end of 2024. New inventory of 27.8 million square feet was completed and delivered in 2024. Savannah Industrial Market 2024:Q4 2023:Q4 2022:Q4 2021:Q4 Total Inventory 153,700,000 Sq. Ft 125,854,000 Sq. Ft. 105,027,000 Sq. Ft. 89,300,000 Sq. Ft. New Construction Added to Inventory 27,846,000 Sq. Ft 21,100,000 Sq. Ft. 15,700,000 Sq. Ft. 8,000,000 Sq. Ft. Total Inventory Available for Sale/Lease 13,237,000 Sq. Ft 8,748,000 Sq. Ft. 702,000 Sq. Ft 480,000 Sq. Ft Overall Vacancy Rate 8.6% 7.0% 0.7% 0.5% Source: Gilbert & Ezelle | Cushman & Wakefield Marketbeat Report, Q4 2024, obtained 12/2024.