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38 Savannah Area Chamber of Commerce 2016 Economic Trends 18 Industry: Real Estate Office and Industrial Markets Metro Savannah's office market experienced a slight uptick in the overall vacancy rate as of the third quarter of 2015. Of non- owner occupied office space 5,000 square feet or larger, the office space inventory in Metro Savannah surpassed nearly 3.4 million square feet. The market occupancy rate slightly decreased to 81.9% after hovering in the range of 77.4% to 83.1% in the preceding eight quarters. In the MSA, office rental rates increased by about 1% from 2014, but surged 20% on the Westside and 8% in the central business district, reflecting strong demand in those areas. Source: Gilbert & Ezelle Commercial Real Estate, Cushman & Wakefield Marketbeat Report, Q3 2015, retrieved 11/9/2015. Savannah MSA Office Market 2015: 3 rd Quarter Total Square Feet Reported 3,360,752 Vacant Space (sq. ft.) Reported 608,296 Vacancy Rate 18.1% Gross Rental Rate 1 (per sq. ft.) by Market Savannah MSA $19.03 CBD/Downtown $22.60 Islands $20.33 Southside $21.94 Effingham County $17.75 Westside $22.88 Bryan County $17.53 Source: Gilbert & Ezelle CRE, Cushman & Wakefield Marketbeat Report, Q3 2015, retrieved 11/9/2015. (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 5.6%, from record highs of nearly 20% in 2009 and 2010. By the third quarter of 2015, new inventory of 680,960 square feet was completed. Additionally, 1,543,775 square feet of new inventory was under construction in 2015. Savannah Industrial Market Total Inventory 47,109,974 Sq. Ft. New Construction Added to Inventory 680,960 Sq. Ft. Total Inventory Available for Sale/Lease 2,638,158 Sq. Ft Overall Vacancy Rate 5.6 % Source: Gilbert & Ezelle CRE, Cushman & Wakefield Marketbeat Report, Q3 2015, retrieved 11/9/2015. 0 250 500 750 1,000 1,250 CBD/Downtown Southside Westside Islands Effingham County Bryan County Savannah Office Market: 2015, 2nd Quarter Total Sq. Ft. (000) Sq. Ft. Available (000)