5,475,930 SF of new space was added to the market Q4 2022 and there was 5,455,086 SF of net absorption. YTD absorption has climbed to 16,719,660 SF which, as percentage of the market’s total inventory, is 16.7% and will again rank Savannah as one of the top markets in the nation.
“The Port of Savannah continues to rank as one of the fastest growing and most efficient deep-water ports in the nation and recently reported that it handled 464,883 TEUs in November, a decrease of 6.2% compared to the same month last year. They also stated that container trade at U.S. ports is returning to a more sustainable growth pattern, which is a positive development for the logistics industry. Ships at anchor trending downward (currently 17 ships, down 43% from 30 in November) and expanded berth capacity coming online this year will allow the port to serve its growing customer base with even greater efficiency. In the opening months of the current fiscal year, 160 importers were either new customers at the Port of Savannah or existing customers who grew their Savannah trade by 20% or more. This combined increase represented 107,000 additional TEUs from July through October compared to the previous year. While there has been downward pressure on the total U.S. container trade related to inflation and a shift in consumer spending toward services such as restaurants and travel, the Port of Savannah continues to outperform relative to the national market.
The local industrial real estate market continues to thrive and is currently the #1 Top Growth Market in the U.S. in terms of net absorption as a percent of total inventory (16.7%). The port is moving container volumes now that it did not expect to reach until 2025, and, as a result, we continue to see strong demand for warehouse space and vacancy rates below 1%. All the significant investments in local infrastructure, both on and off-port, and the availability of well-located sites for additional development will continue to pay off for Savannah. And the effects of the $5.54 billion Hyundai electric vehicle plant that is now under construction are just beginning to be felt.”
- The market has grown by 15,728,851 SF in the last 12 months
- Vacancy is less than 1%
- Net absorption for 2022 was over 16,700,000 SF