Photography: Cedric Smith
Boasting 9,700 feet of contiguous berth space and over 3 million SF of warehouse space available within 30 miles of the port, Savannah’s commercial real estate market is poised for success and continued growth. Savannah, with a population of 886,000 and a workforce of 416,000 within a 60 mile radius, is the largest single container terminal in North America according to Georgia Ports Authority. With a $706 million dredging project underway, the port will only continue to grow our economy and create jobs. In Q1, Savannah and its surrounding areas saw a rise in asking price as well as a significant 1.5% drop in CAP rate.
Vacancy rates have dropped almost 1.4% from Q1 last year and are forecasted to drop to an astonishing 0% within the next 2 years. As investors flock to the area, asking prices per SF are reaching an all-time high as we move into Q2 seeing more than $30 per SF rise over the past five years. The Historic District and Pooler have seen the most significant raise in price and a 6 month drop in time on the market as well.
Georgia’s deepwater ports and inland barge terminals support more than 295,443 jobs in the state per year and generate $15.5 billion in income, $61.8 billion in revenue and $6.1 billion in state and local taxes. Savannah’s unemployment rate, as of February 2016, is the same as the national unemployment rate (5.3%), but lower than that of Georgia (5.6%). Moving forward into Q2 this year, we see nothing but success on the horizon for Savannah and the surrounding areas bolstering a healthy commercial real estate market with a projected 100% absorption assumption of the previous 5-year average.
* Data provided by Georgia Ports Authority, Savannah Area Board of Realtors, and Co-Star