- Savannah’s industrial market saw a 65% surge in large warehouse transactions, hitting a record $995 million in trades over $25 million.
- Major transactions include the ASB Real Estate Investments’ purchase of the Savannah Logistics Center for $161 million and a new industrial park sale at $104 million.
- With active tenant requirements over 27M SF and significant port upgrades, Savannah is positioned as a key player in industrial real estate.
Record Port Trades
According to Green Street, the Port of Savannah’s higher warehouse trade volumes from the West Coast last year led to a surge in regional warehouse activity, outperforming the rest of the country.
The Port of Savannah’s efforts to attract more shipping from the West Coast boosted large warehouse trades in the area last year. While warehouse transactions over $25M fell 29% nationally, Savannah enjoyed 65% growth, reaching a record-breaking $995M.
Bigger, Better Deals
Remarkably, after seeing only one industrial transaction exceeding $100M until 2021, Savannah has now set records with 11 trades surpassing this milestone, all from last year.
The recent purchase of the 1.4 MSF Savannah Logistics Center by ASB Real Estate Investments for $161M stands out. Last month’s sale of a 1.2 MSF industrial park for $104M also helped.
Additionally, VanTrust Real Estate unveiled two industrial buildings totaling 1.8 MSF in the Interstate West industrial park in Ellabell. Reliable tenants like WebstaurantStore and Hyundai contribute to the appeal of these properties, especially with Hyundai building am EV and battery plant near the 77 Logistics Drive facility.
Why It Matters
With the Savannah industrial market achieving significant net absorption in 2023 and almost reaching equilibrium in 1Q24, the region’s outlook is bright indeed. JLL’s recent market report highlighted 2.6MSF of net absorption alongside 2.9MSF of new supply delivered in 1Q24 alone.
Active tenant demand exceeds 27MSF, with 32MSF already under construction. At this rate, the new and improved Port of Savannah is poised to challenge the nation’s top three ports in LA, Long Beach, and NYC/NJ.
