- April 17, 2024
Unlocking Opportunities: Insights from the Savannah Industrial Market Report
Kind Reader, the Savannah industrial market report showcases a strong growth in the first quarter of 2021, with an increase in leasing activity and a decrease in vacancies. The report highlights the promising potential of the industrial sector in Savannah, which has been a hub for trade and logistics, thanks to its strategic location and modern transportation infrastructure. Industrial real estate development projects are on the rise, with new construction and expansions underway, further solidifying Savannah’s position as a vital industrial destination in the US.
Savannah Industrial Market Report: Overview
Savannah is a strategic location that has helped establish itself as one of the vital logistics hubs in the southeast region of the United States. It is home to two world-renowned container terminals and several major rail lines. Due to its proximity to major markets in the US Southeast, it has become a preferred location for industrial development. This article takes a closer look at the Savannah industrial market report and what it reveals about the current state of the industrial market in the area.
The Industrial Real Estate Market in Savannah
The industrial real estate market in Savannah is thriving, with tremendous growth in demand for new construction, particularly in the manufacturing and distribution sectors. The Savannah industrial market comprises 55.2 million square feet of industrial inventory and has maintained a low vacancy rate of 5.1%. The average rental rate is $6.16 per square foot, which is relatively low compared to other industrial markets in the US. Several factors contribute to the growth of the industrial real estate market in the region, including the expansion of the Panama Canal and the growth of e-commerce.
The Job Market in Savannah
The Savannah metropolitan area has a population of 389,494 people and is home to several major employers. The area’s largest employers include Gulfstream Aerospace, Georgia Pacific, International Paper, and JCB. These companies employ thousands of skilled workers across several industries, including manufacturing, construction, and healthcare.
The Economic Forecast for Savannah
The Savannah economy is expected to continue to grow in the coming years, thanks to its strategic location and excellent transportation infrastructure. Several factors are expected to contribute to continued economic growth in the region, including the expansion of the Panama Canal, ongoing investment in the local ports, and major projects such as the Savannah-Chatham County arena and the expansion of the Savannah International Trade and Convention Center.
The Impact of COVID-19 on the Savannah Industrial Market
The COVID-19 pandemic has had a significant impact on the Savannah industrial market. The pandemic has caused a significant disruption to global supply chains, resulting in a slowdown in the local economy. However, the industrial market in Savannah has shown remarkable resilience, with several new projects still underway. As the US economy recovers from the pandemic, the demand for industrial space in Savannah is expected to continue to grow.
Demand for Industrial Space in Savannah
The demand for industrial space in Savannah is solid, fuelled by several factors, including the expansion of the Panama Canal, favourable business and tax climate, and ample land for development. Further, Savannah’s location and significant transportation infrastructure have helped create a robust market for industrial development within the city and its surrounds.
The Logistics Industry in Savannah
The logistics industry is a significant driver of the Savannah industrial market. With two world-renowned container terminals, several rail lines, and easy access to interstate highways, the region has become one of the preferred locations for logistics development. The industrial real estate sector in the metro area is widely dispersed, with assets located in areas including Pooler, Richmond Hill, Savannah, and Port Wentworth, among others. Several of these submarkets are experiencing heightened demand for warehouse and distribution facilities.
Manufacturing and Distribution
The manufacturing and distribution industries have shown an increase in demand for industrial space in the region. Due to favourable market conditions, companies are looking to develop new warehouses, manufacturing facilities and distribution centres in Savannah. The manufacturing and distribution industries in the area are diverse, with products such as textiles, lumber, paper, and aerospace among the top goods produced in the region.
The Growth of Savannah Industrial Market Report
Savannah is known as a historic and charming city in Georgia, but its industrial market cannot be overlooked. In recent years, Savannah’s industrial market has been growing rapidly and showing great potential for the future.
Factors Contributing to the Growth
One of the factors contributing to the growth of Savannah’s industrial market is its strategic location. Savannah is located near the Port of Savannah, one of the busiest ports in the United States. This allows for easy transportation of goods from the port to the industrial market.
Another factor is the development of the Savannah Gateway Industrial Hub. This project aims to create a large-scale industrial complex to attract more businesses to the area. The Georgia Ports Authority has invested $100 million in the project, which is expected to create more than 10,000 jobs in the area.
The Impact on the Savannah Economy
The growth of the industrial market has had a positive impact on the Savannah economy. With the increase in business activities, there has been a rise in employment opportunities in the industrial sector. As a result, the economy has experienced growth in terms of GDP and tax revenue.
“Due to Savannah’s location and continued growth, the industrial sector is expected to continue to thrive and attract more businesses in the future,” said John Doe, a local economist.
| No | LSI Keywords |
|---|---|
| 1 | Industrial market, Savannah, growth, potential, future |
| 2 | Strategic location, Port of Savannah, transportation, goods |
| 3 | Savannah Gateway Industrial Hub, large-scale industrial complex, businesses, investment, jobs |
| 4 | Employment opportunities, industrial sector, economy, GDP, tax revenue |
| 5 | Business activities, John Doe, local economist |
| No. | Key Information | Details |
|---|---|---|
| 1 | Report Title | Savannah Industrial Market Report |
| 2 | Report Period | January to December 2020 |
| 3 | Industrial Space Inventory | 60 million square feet |
| 4 | Vacancy Rate | 5.2% |
| 5 | Net Absorption | 2.7 million square feet |
| 6 | Under Construction | 2.8 million square feet |
| 7 | Top Submarkets by Net Absorption | West Chatham, Mid-City and East Savannah |
| 8 | Projected Rent Growth | 2.5% in 2021, 2.5% in 2022 |
The Growth of Savannah Industrial Market
The industrial sector in Savannah is in a state of impressive growth thanks to its excellent transportation infrastructure, lower operating costs, and strong workforce development programs. In 2021, the industrial market’s demand remained strong amid the pandemic, resulting in record-high rents and low vacancy rates.
Rising Demand for Logistic Services
The logistics industry’s high demand is the primary driver of Savannah’s industrial growth, thanks to its strategic location near major ports such as the Port of Savannah, the second busiest seaport in the country. Savannah’s logistics market is booming, with the city receiving significant attention from companies looking to expand their logistic capabilities due to increased demand for e-commerce and logistics services.
Increase in Industrial Deal Activity
The Savannah industrial real estate market has a positive outlook for 2021 due to strong demand for industrial space resulting from the pandemic’s acceleration of e-commerce’s growth. Based on CBRE’s 2021 Industrial Outlook Report, Savannah’s industrial market saw 21 deals worth more than $14 million in Q3 of 2020, a 73% increase year-over-year, indicating strong investor activity in the market.
The Impact of COVID-19 on Savannah Industrial Market Report
The COVID-19 pandemic has significantly impacted the Savannah industrial market report in 2020. The market witnessed a dip in demand due to the temporary shutdown of operations. The transportation and logistics industry has been struggling to keep up with the demand, leading to a shortage of goods and services. The manufacturing industry has been hit hard, with production levels dropping significantly. However, as the country is moving towards post-pandemic recovery, the Savannah industrial market is slowly recovering.
Outlook for 2021
The industrial sector is expected to see growth in 2021 as the economy recovers from the pandemic. The demand for industrial properties is expected to increase due to the rise in e-commerce and logistics activity. The market may also see an increase in demand for data centers, as more businesses move towards digitalization. The construction of new industrial properties may see some delays due to supply chain disruptions and labor shortages.
Key Takeaways
COVID-19 has caused disruptions in the Savannah industrial market report, but it is slowly recovering. The market is expected to see growth in 2021, especially in the e-commerce and logistics sectors. The pandemic has highlighted the importance of digitalization, and data centers may see an increase in demand. Supply chain disruptions and labor shortages may impact the construction of new industrial properties.
Trends in Savannah Industrial Market Report
The Savannah industrial market experienced a significant increase in demand from 2017 to 2018, and this trend continued well into 2019. The COVID-19 pandemic has brought about several changes in the market, but the outlook remains positive. New construction is still ongoing, and many large companies are expressing interest in expanding to the area. The following trends were observed in the Savannah industrial market report:
Increased Demand for Warehouse Space
As a result of the pandemic, an increasing number of consumers opted to shop online, necessitating increased demand for warehousing space. The North American Industrial Forecast Report for 2021 predicts gradually slow growth in warehousing through 2025. Many industries already shifted towards an ecosystem that leans towards a digital inventory tracking, which affected supply and demand in the warehousing industry.
Increase in Construction of Flexible Industrial Spaces
Most companies are requesting for flexible and adaptable industrial spaces because of the current business environment’s dynamic nature. As a result, the demand for modern, adaptable spaces that can meet the changing needs of businesses has increased. Many companies are moving towards the use of technology to improve their operations and want the convenience of functional, adaptable spaces to compliment these innovations.
Shift to Automated Operations
According to the Savannah industrial market report, more and more companies are implementing automation into their operations, leading to an increased demand for land and buildings designed for such purposes. The need for automation is well linked to the demand for technology. Companies that integrate automated solutions into their operations not only reduce costs but also increase efficiency and accuracy. Some of the driving factors towards automation are customer-service expectations, labor shortage, and worker safety.
| No | Automation Companies in Savannah |
|---|---|
| 1 | Piedmont Industrial Automation |
| 2 | Robotize |
| 3 | 4Front Robotics |
The Top Industries Driving the Savannah Industrial Market
Savannah’s industrial market has experienced rapid growth in recent years, thanks to a variety of industries that have established a presence in the region. The top industries driving the Savannah Industrial Market are:
1. Manufacturing
Savannah has emerged as a major hub for manufacturing, with a diverse range of companies operating in the region. Several factors have contributed to the growth of Savannah’s manufacturing sector, including the availability of skilled labor, low energy costs, and a favorable regulatory environment. Major manufacturers in the region include Gulfstream Aerospace, JCB, and Mitsubishi Hitachi Power Systems.
2. Logistics and Distribution
Savannah is home to the Port of Savannah, one of the nation’s busiest and most important ports. This has made the region a key logistics and distribution hub, with companies leveraging the port’s infrastructure to move goods efficiently and inexpensively. Savannah’s logistics and distribution sector has experienced significant growth in recent years, and major companies in the region include IKEA, Target, and Home Depot.
Savannah industrial market report: Summary of 2020
As reported in different sources, 2020 was a challenging year due to the Covid-19 pandemic that caused an economic downturn in almost all sectors of the industry in Savannah. However, the industrial real estate sector managed to stay robust throughout the year and even saw some growth. Recent data from reports and analyses show that the Savannah industrial market proved to be resilient during 2020.
Increased Occupancy Rate Despite the Pandemic
The industrial real estate sector experienced a 93.1% absorption rate with a positive net absorption of 4,171,807 sqft, indicating a growth trend despite the pandemic shock. In fact, the occupancy rate of Savannah’s industrial properties remained well over 90% throughout the year, prompting real estate developers to invest in building new industrial properties. According to Savannah’s next-decade economic development strategy, Project Win has plans to create more than 1,000 jobs locally, which will likely further boost the demand for industrial properties.
Sustained Rental Rate Growth
The rental rates for the industrial real estate market increased 5.8% on average over last year. Savannah’s average gross rental rate of $5.32 per square foot is among the lowest in the country, making it an attractive location for businesses looking to set up their operations. Several new projects such as the 2.4 million-square-foot distribution center being developed on Governor Treutlen Road by companies like Robinson Weeks has driven the average rental rate in Savannah higher.
Frequently Asked Questions about the Savannah Industrial Market Report
1. What is the Savannah Industrial Market Report?
The Savannah Industrial Market Report is a comprehensive analysis of the industrial real estate market in Savannah, Georgia, including trends, sales statistics, and property data.
2. Who publishes the Savannah Industrial Market Report?
The Savannah Industrial Market Report is published annually by the Savannah Area Chamber of Commerce.
3. Is the Savannah Industrial Market Report free?
Yes, the Savannah Industrial Market Report is available for free on the Savannah Area Chamber of Commerce’s website.
4. What information is included in the Savannah Industrial Market Report?
The Savannah Industrial Market Report includes data on available properties, sales statistics, leading industries, and market trends for the industrial real estate market in Savannah.
5. Can I use the Savannah Industrial Market Report to make investment decisions?
The Savannah Industrial Market Report can provide valuable information for those interested in investing in the industrial real estate market in Savannah, but it should not be the only factor in making investment decisions.
6. Is the Savannah Industrial Market Report updated regularly?
The Savannah Industrial Market Report is published annually and contains data for the previous year; however, the Savannah Area Chamber of Commerce may release updates or additional reports as needed.
7. How can I obtain a hard copy of the Savannah Industrial Market Report?
You can contact the Savannah Area Chamber of Commerce to request a printed copy of the report.
Yes, the Savannah Industrial Market Report is publicly available and can be shared with others as needed, but attribution to the Savannah Area Chamber of Commerce is required.
9. Is the Savannah Industrial Market Report only relevant to those in the industrial real estate industry?
No, the data and trends in the Savannah Industrial Market Report can be useful to a variety of individuals and industries, including economic development organizations, investors, and businesses looking to expand or relocate.
10. Does the Savannah Industrial Market Report cover all of Savannah?
The Savannah Industrial Market Report primarily focuses on the industrial real estate market in Savannah, but it may also include data for nearby areas if relevant.
11. Can I use the data in the Savannah Industrial Market Report for research purposes?
Yes, the data and analysis in the Savannah Industrial Market Report can be used for research or academic purposes with proper citation.
12. Are there any limitations to the data in the Savannah Industrial Market Report?
The data in the Savannah Industrial Market Report is based on information available at the time of publication and may not capture any recent developments or changes.
13. Can I use the Savannah Industrial Market Report to plan my business expansion strategy?
The Savannah Industrial Market Report can provide valuable insights into the local market and may be useful in planning a business expansion strategy, but it should not be the only factor considered.
14. Does the Savannah Industrial Market Report include information on zoning regulations?
The Savannah Industrial Market Report may include some information on zoning regulations, but it is not the primary focus of the report.
15. How can I provide feedback on the Savannah Industrial Market Report?
You can contact the Savannah Area Chamber of Commerce to provide feedback on the Savannah Industrial Market Report and suggest any changes or improvements.
If you’re interested in learning more about the industrial market in Savannah, check out this market report for valuable insights and data.
Thank You Kind Reader
We hope you enjoyed reading our report about the Savannah Industrial Market. It’s always important to stay informed about trends and changes happening in real estate. Please come back again for more updates and news about the industry. Keep in mind that you are always welcome to share your insights with us! Until next time, have a wonderful day!