Savannah’s industrial market has experienced tremendous growth over the last few years due to having the fourth busiest US port, and its strategic location in the Southeast. The port has set records almost every month this year as container volume has risen 21%, roughly 900,000 TEU’s over 2020. 

Major infrastructure improvements such as the Mason Mega Rail Terminal and ongoing channel deepening, set to complete early 2022, has attracted increased interest from third party logistics and ecommerce firms which has pushed vacancy rates from 7.7% in Q4-20 to 3.3% in Q4-21. Strong leasing activity will keep the market tight in the near-to-midterm; however, macro trends that have boosted East Coast port traffic have resulted in 21.6 million SF under construction. This makes Savannah as one of the largest pipelines on a percentage basis representing 24% of total inventory, which will add supply side pressure to the market. Rental rates have grown 9.8% from $4.97 to $5.44/SF over the last 12 months. Rates are also very competitive compared to nearby port cities of Jacksonville and Charleston.