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Hyundai Plant Drives Unprecedented Growth in Savannah Industrial Market

The Savannah industrial market is expanding at “an extraordinary pace,” with 15.8 million square feet of space added in 4Q 2024 alone, according to a new report from Colliers.

“To put this into perspective, the market has effectively doubled in size in the last four years, which is remarkable,” Colliers stated.

A major reason for this growth spurt is Hyundai Motor Company’s mammoth electric vehicle metaplant in nearby Ellabell, where the company’s first U.S.-made vehicle rolled off the production line in 2024. During its construction, South Korean and other suppliers rushed to build their own factories in surrounding counties, spurring warehouse development and expanding the Port of Savannah’s existing industrial base.

Colliers said the 15.79 million square feet added in the fourth quarter, including the 12 million square foot Hyundai plant and three suppliers, brought the city’s total industrial inventory to 153.50 million square feet.

There was a slight increase in overall vacancy, though the bulk vacancy rate fell. The report predicted vacancy would taper off mid-year along with a drop in new construction, while demand would increase. Currently, 24 buildings containing 9.87 million square feet are under construction. Nineteen of them are speculative builds averaging 360,000 square feet each. Five are smaller build-to-suits averaging 607,000 square feet.

Net absorption in the quarter was 693,000 square feet, while absorption for the year totaled 8.8 million square feet. With Hyundai included, the total absorption for Q4 was 14.27 million square feet and for the year 22.28 million square feet. The report said this would make Savannah one of the top growth markets in the country again.

Meanwhile, the Georgia Ports Authority (GPA) is pushing ahead with a $4.5 billion expansion of the Port of Savannah over the next 12 years. The Port is home to the largest single-terminal container facility of its kind in North America, encompassing 1,345 acres. Moving millions of tons of containerized cargo annually, Savannah is also the third-busiest container gateway in the U.S., providing greater scheduling flexibility and market reach, the GPA claims.

Savannah has also become a leading port of entry for trade with India and a new West India North America route has been established.

Reprinted with permission from the Thursday, 23 January 2025 06:29:38 EST online edition of GlobeSt © 2025 ALM Media Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-256-2472 or reprints@alm.com.