SAVANNAH CRE TRENDS
At the May 2026 Mayor’s Small Business Conference, Clara spoke on the following three trends shaping the Savannah commercial real estate market.
Trend 1: Industrial — The Boom Is Real, and It’s Maturing
The numbers speak for themselves. In 2025, the Savannah MSA saw 14.3 million square feet of new industrial space delivered — the equivalent of roughly 245 football fields (end zones included). That figure comes on top of multiple years of record inventory additions, pushing the overall vacancy rate to approximately 10.8%.
That number might raise an eyebrow, but context matters. This market has absorbed an extraordinary volume of new supply, and ongoing demand continues to fuel development. What we’re seeing isn’t a slowdown — it’s a transition. Savannah’s industrial market is moving from frenzy into a more sustainable, disciplined phase of growth. That’s a sign of a market finding its footing and maturing.
Trend 2: Low Supply, Low Vacancy, Robust Pricing
While industrial matures, Savannah’s office and retail markets are a story of tight supply and strong pricing power.
Office vacancy in the market is hovering around just 3%, bucking national trends where many cities are still wrestling with post-pandemic oversupply. With two of downtown Savannah’s largest office buildings being converted to hotels, available supply has shrunk even further. The result? Market rents of $32/sq ft across the market and $36/sq ft in downtown — strong returns for owners and a competitive environment for tenants.
Retail is even tighter. Broughton Street, Savannah’s premier retail corridor, has barely a storefront to spare. Market rents for downtown retail spaces range from $40 to $65 per square foot, depending on size, location, and condition.
The headline number tying it together: total commercial real estate sales for the Savannah MSA topped $3.1 billion in 2025. Industrial transactions accounted for roughly one-third of that volume — and retail assets commanded the highest average sale price, at $372 per square foot.
Trend 3: Growth Continues to Spread Across the Region
Perhaps the most encouraging sign of Savannah’s long-term health is that growth is no longer concentrated in any single area. A diversified local economy is driving steady investment into retail, medical office, hospitality, mixed-use, and multifamily developments — and those investments are spreading across the entire region.
From Pooler and West Chatham County to Port Wentworth and North Savannah, from Effingham County to the Hyundai corridor, capital is flowing into communities that have historically sat on the sidelines. This geographic diversification signals better stability for the region as a whole.
For small businesses in particular, broader economic growth across more neighborhoods means more customers, more foot traffic, and more opportunity — wherever you happen to be operating.
