The Savannah industrial market added 3,404,187 SF in the fourth quarter, bringing total inventory up to 84,118,736 SF of which 64,596,347 SF is ‘bulk’, or greater than 100,000 SF. The overall vacancy rate increased slightly, from just 1.31% in Q3 to 2.27%, with bulk vacancy up 150 basis points this quarter to 2.63%. Net absorption for Q4 totaled 2.5 million SF bringing the total for 2021 to a healthy 8,320,780 SF. Total absorption, as a percentage of total inventory, was 9.9% which will surely make Savannah one of the top markets in the country once again.
Between existing market tenants discussing expanding and newcomers circling, 2022 should be another strong year for the Savannah industrial market. There is currently a total of 16.9 million SF under construction, of which 5.8 million SF is build-to-suit. How quickly the market can absorb the 11.1 million square feet of spec space under construction will determine the next wave of development, but if the Port continues to expand at the rate it has, the Savannah industrial market won’t be far behind it.
- Vacancy rate increased slightly, from 1.31% Q3 to 2.27% Q4
- 16,984,522 SF is currently under construction
- Net absorption totaled 8,3201,780 SF for 2021
- Asking rents increased by 3% over Q3