On February 25, 2025, the Georgia Ports Authority (GPA) made a groundbreaking announcement at the Savannah State of the Port event: Savannah is now the fastest-growing port on the U.S. East Coast. With container volumes up by 12.5% from the previous year, this growth is driven by strong partnerships, exceptional connectivity, and strategic investments. As Savannah's ports expand, the ripple effect on the commercial real estate market is undeniable, creating new opportunities for businesses, investors, and landlords alike.

A Booming Economy Backed by Strategic Growth

According to GPA Board Chairman Kent Fountain, the success of Georgia’s ports is due to strong collaboration between government entities and supply chain stakeholders. This unified approach has positioned Savannah and Brunswick as the nation’s best-operated and most user-friendly ports for global business.

Georgia Ports President and CEO Griff Lynch detailed ambitious expansion plans for the Port of Savannah, including additional berth space, increased container yard and rail capacity, and enhancements to truck gates. With nearly 5.6 million twenty-foot equivalent container units (TEUs) handled last year—a record-breaking figure—these improvements are crucial to sustaining the port’s growth trajectory.

Expanding Infrastructure and Enhancing Efficiency

The GPA’s commitment to efficiency extends beyond port facilities. The Mason Mega Rail Terminal and the Appalachian Regional Port have achieved record volumes, strengthening Savannah’s reputation as a leader in rail logistics. Additionally, the Blue Ridge Connector, set to open in 2026, will improve freight mobility and reduce truck traffic, further streamlining logistics operations.

As Savannah’s ports grow, so does the demand for industrial and logistics warehousing. Businesses need efficient warehousing and distribution solutions to accommodate rising container volumes, making the Savannah Metropolitan Statistical Area (MSA) a hotspot for commercial real estate investments.

Savannah’s Industrial Real Estate Market: A Closer Look

Savannah has continued its status as a major East Coast distribution hub, thanks to its strategic position at the nexus of the region's rail and road transportation network. Recent infrastructure enhancements, including the completion of harbor deepening in 2022, have further boosted Savannah's appeal. During the pandemic, rapid growth in goods spending and increased imports to the fast-growing Port of Savannah led to record demand for industrial space, pushing vacancies to historic lows in 2022. However, with new supply delivered in 2023, the market has loosened as port volume has begun to level off.

Recently, as national retail spending has picked up, monthly throughput at the Port of Savannah has surpassed 2023 levels. This resurgence in goods traveling through the area has increased leasing activity, particularly among big-box distribution facilities. The market's manufacturing base is also set to expand following the announcement of Hyundai's electric vehicle facility in Bryan County, which will eventually employ about 8,000 people across 17 million square feet.

Despite these positive developments, demand has not kept pace with the wave of new industrial supply. The area's vacancy rate has risen to 12.3% from a low of under 2% in early 2022. An additional 12.1 million square feet is under construction, representing an 8.0% expansion of total inventory in the relatively small market. Savannah consistently ranks as one of the country's top markets for industrial inventory expansion.

Activity at the Port of Savannah increased in 2024 compared to the previous year, with the Georgia Ports Authority handling about 10% more twenty-foot equivalent container units in October than in October 2023. While there has been more activity this year, some customers continue to divert to the U.S. West Coast due to contract negotiations on the East Coast.

In recent years, institutional and REIT buyers have increasingly turned their attention to Savannah's industrial assets, seeking proximity to the Port of Savannah. The average annual sales volume from 2020 to 2023 was $1.5 billion, a significant increase from the $168 million average from 2014 to 2019. However, elevated interest rates and economic uncertainty have slowed transaction activity, with about $1.0 billion closed in the past year. The bid-ask spread has widened, with industrial deals in Savannah closing at around 8% less than asking prices.

Leasing absorption over the last 12 months has been notable, with 23.5 million square feet of deliveries and 19.4 million square feet of absorption. Despite the current vacancy rate of 12.3%, which is above the area's 10-year historical average of 5.0%, the majority of under-construction space is pre-leased, and construction starts have significantly diminished. The industrial vacancy rate is expected to decline as fewer buildings are delivered and recently constructed properties lease up.

Broader population and housing growth in the southeast have recently helped the market secure large tenants. Recent big-box leases have included logistics tenants in new construction. In outlying Chatham County, south of the port and downtown Savannah, logistics company Plastic Express announced a second location in Savannah with plans for $80 million in investment and an estimated 200 new jobs. It signed a 10-year lease for nearly 1 million square feet at the Central Port Logistics Center in Building 11, currently under construction. Other large leases have also come from logistics providers, such as Armstrong Logistics, with a 733,200 square-foot lease signed in March 2024 at Georgia International Trade Center, located in Effingham County.

NAI Mopper|Benton: Your Trusted Partner in Savannah’s Commercial Real Estate Market

With decades of expertise in Savannah’s commercial real estate sector, NAI Mopper|Benton is uniquely positioned to assist businesses in navigating this evolving landscape. Whether you are a tenant seeking strategic warehouse space or a landlord looking to maximize property value, our team provides tailored solutions to meet your needs.

For Tenants: We help businesses identify prime locations that align with their logistics and warehousing needs, ensuring seamless operations in a high-demand market.

For Landlords: Our investment advisory services focus on positioning properties to attract quality tenants and optimize returns in this rapidly growing sector.

A Promising Future for Savannah’s Economy

Georgia’s ports contribute significantly to the state’s economic health, supporting over 609,000 jobs. Over the next decade, the GPA plans to invest $4.2 billion in expanding cargo handling capabilities, ensuring Savannah remains a crucial gateway for global commerce. Additionally, a $6 million workforce housing initiative near the Port of Savannah will further strengthen local communities.

With strategic investments and continuous improvements, Savannah is set to maintain its dominance as a top-tier logistics hub. For businesses and investors looking to capitalize on this growth, now is the time to act.

Contact NAI Mopper|Benton today to explore commercial real estate opportunities in Savannah’s thriving market.