Savannah Shopping Centers Market Report

Market Overview

The population in Savannah, Georgia has been steadily increasing, revealing signs of a healthy economic and retail market. The area continues to be an attractive place for living, working, and retiring due to its low cost of living and high quality of life. The largest job sector involving trade, transportation, and utilities has experienced 18% growth in employment over the past five years. Additionally, the manufacturing sector, the second largest job sector, has witnessed growth of over 20% in the same time period. Furthermore, the Savannah retail market has recorded an all-time low vacancy rate, accompanied by healthy rent increases and absorption.

 

Savannah By the Numbers

• Vacancy rate: 3.1%
• Rent growth: 3.8%
• Deliveries in SF: 114K
• Absorption in SF: 223K
• Sales volume: $160MLast 12 Months | Source: CoStar Group

 

Market Performance

Several years of absorption outpacing deliveries have brought Savannah’s retail vacancy to an all-time low of 3.1%. After 2023 ended strong with the highest absorption seen in about a year, the vacancy rate will likely remain low. For the past three years, net absorption has outpaced new deliveries in the Savannah retail market on an annual basis. New construction is typically build-to-suit, with about 12.7% of space under construction available to lease. Annual rent growth for the retail market is 3.8%, which sits above the national benchmark. Meanwhile, deal volume over the last 12 months reached $151 million. Market pricing stands at $230 per square foot, a roughly 8% discount to the national benchmark. Out-of-state buyers make up a large portion of Savannah’s total deal volume. Most sales are under $10 million, and private individuals are often at one or both ends of the deal.