JLL reports historic industrial demand in Savannah

ATLANTA, July 31, 2024 — Savannah’s industrial market continues to see historic leasing volume, tenant demand and positive absorption. According to JLL’s Q2 2024 Savannah Industrial Market Dynamics report, more than 9.8 million square feet of deals have been signed so far this year, a 156% increase year-over-year. Since opening its Savannah office in August 2021, JLL has seen tremendous growth in the market, having executed nearly 12 million square feet of deals. JLL’s Savannah team includes Senior Managing Director Ryan Hoyt, Executive Managing Directors Chris Tomasulo and Bennett Rudder and Senior Associate Lindsey Wilmot.

JLL is currently tracking almost 30 million square feet of users looking for space in Savannah. As more and more West Coast 3PLs expand to Savannah, there is a steady stream of occupier activity consistently evaluating the market. In Q2, Savannah saw 3.3 million square feet of quarterly net absorption. When combined with Q1’s volumes, year-to-date absorption reached the second-largest volume at the mid-year mark ever recorded. So far this year, there have been 10 total move-ins at 5.1 million square feet.

“As 3PLs look to expand into Savannah, we are seeing deal requirements getting larger and investor confidence continues to rise, particularly for speculative development,” said Tomasulo. “Savannah is especially unique in that the demand is not waning for high-quality product in this market, and we are currently experiencing activity levels that are on par with the pandemic-induced peaks that we saw in 2022.”

Savannah’s industrial inventory is growing to meet the unprecedented tenant demand. In Q1 2025, VanTrust will deliver a 2 million-square-foot, build-to-suit warehouse at Interstate West, which has already been leased to Burlington Stores Inc. JLL represented Burlington in the deal. Earlier this year, CRG sold 77 acres within its 764-acre The Cubes at West Port industrial park to Lecangs, a global third-party logistics user where a new 1 million-square-foot industrial facility will be developed. JLL represented CRG in the transaction.

As the single largest and fastest-growing container terminal in America, the Port of Savannah continues to set records, with total TEUs handled up 22.4% year-over-year as of May 2024. With numerous expansion and improvement projects underway, the port continues to position itself as a leading trade gateway, bolstering demand in Savannah’s industrial market. Additionally, the Port of Brunswick set a record in May, growing roll-on/roll-off volumes by 26%.

“Savannah continues to prove that its robust industrial sector is strong enough to stand on its own, oftentimes even outperforming Atlanta as a percentage of market,” said Rudder. “Since we launched our industrial office three years ago, we have had a front row seat to the market’s explosive growth. Our team is proud to have played a significant role in bringing companies here that recognize the undeniable advantage of Savannah’s port access and regional connectivity.”

For more news, videos and research resources, please visit JLL’s newsroom.