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39 Savannah Area Chamber of Commerce 2015 Economic Trends 18 Industry: Real Estate Office and Industrial Markets Metro Savannah's office market demonstrated a significant decrease in the overall vacancy rate as of Q2 2014 largely driven by net absorption in the CBD/Downtown submarket. Of non-owner occupied office space 5,000 square feet or larger, the office space inventory in Metro Savannah surpassed 3.3 million square feet in the second quarter of 2014. The market occupancy rate increased to 83.1% after hovering in the range of 77.4% to 80.1% in the preceding seven quarters. Source: Gilbert & Ezelle Commercial Real Estate, Cushman & Wakefield Marketbeat Report, Q2 2014, retrieved 11/21/2014 Savannah MSA Office Market 2014: 2 nd Quarter Total Square Feet Reported 3,330,527 Vacant Space (sq. ft.) Reported 563,149 Vacancy Rate 16.9% Gross Rental Rate 1 (per sq. ft.) by Market Savannah MSA $18.91 CBD/Downtown $20.93 Islands $19.55 Southside $18.90 Effingham County $17.75 Westside $18.54 Bryan County $17.81 Source: Gilbert & Ezelle CRE, Cushman & Wakefield Marketbeat Report, Q2 2014, retrieved 11/21/2014 (1) Gross Rental Rate refers to the overall weighted average for all property classes Industrial Market Metro Savannah's industrial and warehousing market experienced notable growth in 2014. Accelerating economic recovery in the region has increased demand, driving the overall vacancy rate down to 8.2%, from record highs of nearly 20% in 2009 and 2010. By the second quarter of 2014, new inventory of 506,000 square feet was completed. Additionally, 328,000 square feet of new inventory was under construction in 2014. Savannah Industrial Market Total Inventory 46,419,974 Sq. Ft. New Construction Added to Inventory 506,000 Sq. Ft. Total Inventory Available for Sale/Lease 3,806,438 Sq. Ft Overall Vacancy Rate 8.2 % Source: Gilbert & Ezelle CRE, Cushman & Wakefield Marketbeat Report, Q2 2014, retrieved 11/21/2014 0 250 500 750 1,000 1,250 CBD/Downtown Southside Westside Islands Effingham County Bryan County Savannah Office Market: 2014, 2nd Quarter Total Sq. Ft. (000) Sq. Ft. Available (000)