The Savannah industrial market added 1,890,500 SF in the first quarter, bringing total inventory up to 86,009,236 SF of which 66,486,847 SF is ‘bulk’, or greater than 100,000 SF. The overall vacancy rate dropped 151 basis points, from 2.27% in Q4 to just 0.76%. Net absorption for Q1 totaled 3.1 million SF bringing the total for the last 2 years to a healthy 14,443,555 SF. As more tenants enter the market, and existing tenants look to expand, we are seeing an increase in leases getting signed on spec buildings before construction is completed along with increases in rents.
The Port’s container volume grew 17.8% in February, extending year-over-year increases to 19 consecutive months. To accommodate that growth, the GPA Board has expedited more than $538 million in capacity expansion projects which were initially anticipated years into the future. These expansion projects will increase the Port of Savannah’s annual capacity from the current 6 million to 9.5 million TEUs by 2025.
March 25, 2022 marked the much-anticipated completion of the Savannah Harbor deepening. Feasibility studies for the harbor deepening began back in 1997 and dredging began in September 2015, adding five feet in depth to the shipping channel. At 47 feet at mean low water, the Savannah Harbor now provides ample draft for ships carrying 16,000+ TEUs, allowing them to transit the river with more containers each trip and during more hours of the day. Along with Savannah’s 7-foot tidal swing, the channel is as deep as 54 feet at high tide.
- Vacancy dropped from 2.27% Q2 2021 to 0.76% Q1 2022
- 18,189,062 SF currently under construction
- 14,443,555 SF has been absorbed over the last two years
- Pre-leasing of spec buildings has increased substantially