Q1 2023 SAVANNAH INDUSTRIAL MARKET REPORT
The rapid growth in goods spending and increased imports to the fast-growing Port of Savannah has led to record demand for industrial space. After decreasing for three consecutive quarters, vacancy has increased to 2.7% in Q1 due to the timing of new deliveries. Leasing activity rebounded in Q1 with record absorption after a considerable slowdown in the second half of 2022. The largest leasing transaction for the quarter was a 1,231,693 SF building to be occupied by Bradshaw Home. There was 28,148,578 SF under construction in Q1, representing a 25.7% expansion of total inventory in this growing market. The future trajectory for Savannah is one of growth as developers look to satisfy tenant demand. While more than 30 MSF has been added to the inventory in just the last two years, suitable space options for tenants continue to shrink.