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42 Savannah Area Chamber of Commerce 2018 Economic Trends 18 Industry: Real Estate Office and Industrial Markets Metro Savannah's office market experienced a decrease in the overall vacancy rate as of the fourth quarter of 2017. 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 increased to 84.2% after hovering in the range of 77.4% to 83.1% in the preceding four years. In the MSA, office rental rates increased 2.6% from 2016, and increased faster in Bryan County (+5%), on the Westside (+3.5%), and Southside (+3.4%) reflecting relatively stronger demand in those areas. Source: Gilbert & Ezelle Commercial Real Estate, Cushman & Wakefield Marketbeat Report, Q4 2017, 1/2018. Savannah MSA Office Market 2016: 4 th Quarter Total Square Feet Reported 3,419,220 Vacant Space (sq. ft.) Reported 540,003 Vacancy Rate 15.8% Gross Rental Rate 1 (per sq. ft.) by Market Savannah MSA $19.79 CBD/Downtown $22.01 Islands $21.06 Southside $19.88 Effingham County $17.83 Westside $19.26 Bryan County $18.69 Source: Gilbert & Ezelle | Cushman & Wakefield Marketbeat Report, Q4 2017, retrieved 1/2018. (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 2017. Economic growth in the region has increased demand, driving the overall vacancy rate down to 1.2%, less than half of the previous year's rate and down record highs of nearly 20% in 2010. New inventory of 4.4 million square feet was completed and delivered in 2017. Additionally, 3.4 million square feet of new inventory is under construction with delivery expected in 2018, with 54% already committed to users. Savannah Industrial Market Total Inventory 55,642,703 Sq. Ft. New Construction Added to Inventory 4,392,048 Sq. Ft. Total Inventory Available for Sale/Lease 673,771 Sq. Ft Overall Vacancy Rate 1.2% Source: Gilbert & Ezelle | Cushman & Wakefield Marketbeat Report, Q4 2017, retrieved 1/2018.