Savannah Commercial Office Space for Rent

Q4 2025

Savannah Commercial Real Estate Market Report

Focus: Q4 2025 Market Trends

Executive Summary

The Savannah commercial real estate (CRE) market in late 2025 is defined by robust industrial activity and a stabilizing office sector, supported by the region's expanding port and manufacturing base [1, 3]. Industrial fundamentals remain strong, with net absorption ranking among the top nationally, though a surge in new supply has pushed vacancy rates to 14.1% [1, 3]. Office vacancy has tightened to 3.8% as the market benefits from a lack of new construction and steady local demand [4]. Retail is navigating a period of mixed signals, with consumer spending softening slightly but tourism and port-related activity providing a floor [6]. Multifamily demand is resilient, with absorption accelerating despite a significant pipeline of new units [2].

TenantBase Proprietary Data [7] highlights the distribution of active tenant demand over the last 90 days:

  • Retail/Storefront led market activity with 46.88% of all searches [7].
  • Warehouse was the second most active sector at 29.69% [7].
  • Office accounted for 25.00% of total search volume [7].

Office Market

Market Overview Savannah's office market is outperforming many national peers, characterized by tightening vacancy and rising rents due to limited inventory growth.

  • Vacancy & Availability: The overall office vacancy rate decreased to 3.8% in Q3 2025, down from 4.6% in the previous quarter, driven by positive leasing activity in the CBD and non-CBD submarkets [4].
  • Rental Rates: The average asking rent climbed to $35.26 per SF, reflecting a landlord-favorable environment as concessions burn off [4].
  • Market Drivers: Demand is fueled by professional services and logistics-related office users. The lack of significant new office deliveries has insulated the market from the supply-side pressures seen elsewhere [4].
  • Tenant Preferences: TenantBase data shows a preference for shorter lease terms, with 60.00% of office inquiries seeking leases of Less than one year [7].

TenantBase Activity [7]

  • Demand Share: Office accounted for 25.00% of total search volume [7].
  • Lease Term Preference: Tenants are favoring short-term flexibility:
    • Less than one year: 60.00% of deals [7].
    • 1-2 Years: 13.33% of deals [7].
    • 2-3 Years: 13.33% of deals [7].
  • Size Requirements: The average lower size requirement for office space is 667 SF for short-term leases [7].

Industrial & Warehouse Market

Market Overview The Savannah industrial market remains a powerhouse, with leasing activity surging to near-record levels. However, the delivery of speculative projects has temporarily elevated vacancy rates.

  • Vacancy & Rent: Vacancy rose to 14.1% in Q3 2025 as new supply outpaced absorption [1]. Despite this, asking rents increased to $8.51 per SF (NNN), highlighting the premium placed on Savannah's logistics advantages [1]. Other reports peg vacancy lower at 10.6%, reflecting varying methodologies but a consistent trend of supply-driven decompression [5].
  • Demand & Supply: Leasing volume surged to 3.7 million SF in Q3, the second-highest level in the past year [3]. Net absorption was strong at 1.1 million SF, bringing the year-to-date total to 8.3 million SF [1, 3].
  • Construction: The construction pipeline includes over 5 million SF of active projects, though new starts have moderated to help balance future supply [1].
  • Leasing Highlights: TenantBase data shows a split in demand, with 44.44% of warehouse inquiries for 3-5 Year terms [7].

TenantBase Activity [7]

  • Demand Share: Warehouse accounted for 29.69% of total search volume [7].
  • Lease Term Preference: Demand is balanced across lease terms:
    • 3-5 Years: 44.44% of deals [7].
    • 5+ Years: 22.22% of deals [7].
    • Less than one year: 11.11% of deals [7].
  • Size Requirements: Tenants seeking 3-5 Year leases have a significant average requirement of 68,500 SF, reflecting demand for large-scale distribution centers [7].

Retail Market

Market Overview Savannah's retail sector is influenced by broader economic cooling but remains supported by the region's tourism and port industries.

  • Economic Context: The regional economy showed signs of cooling in the first half of 2025, with consumer spending and tourism showing mixed signals [6]. However, port activity remains a strong economic anchor, with container volumes up 9% year-over-year [6].
  • Leasing Activity: TenantBase data indicates solid interest in retail, accounting for nearly half of all local searches, suggesting that small business activity remains vibrant despite macroeconomic headwinds [7].

TenantBase Activity [7]

  • Demand Share: Retail/Storefront activity dominated with 46.88% of all search volume [7].
  • Lease Term Preference: Retail tenants show a preference for mid-term leases:
    • 1-2 Years: 40.00% of deals [7].
    • 3-5 Years: 40.00% of deals [7].
    • 2-3 Years: 20.00% of deals [7].
  • Top Locations: Tenant interest is highest in Hilton Head Island (3 deals), Bluffton (2 deals), and Rincon (2 deals) [7].

Multifamily Market

Market Overview The multifamily market is resilient, with strong renter demand absorbing a significant portion of new inventory.

  • Vacancy & Occupancy: The occupancy rate held steady at 90.8% in Q3 2025, while net absorption accelerated to 600 units, defying national trends of slowing demand [2].
  • Rents: Average rents softened by 1.7% year-over-year to $1,650 per unit as new supply pressured pricing [2].
  • Construction: Construction activity remains elevated, with over 2,000 units underway, which will keep rent growth moderate in the near term as these units deliver [2].

2026 Outlook

Looking ahead to 2026, the Savannah market is positioned for continued expansion, anchored by its port and industrial base.

  • Industrial Growth: The industrial sector will continue to benefit from the Port of Savannah's expansion and major manufacturing projects, driving long-term demand even as the market digests current supply [1, 3].
  • Multifamily Balance: As the current wave of construction delivers, the multifamily market is expected to stabilize, with strong population growth supporting absorption and a return to rent growth [2].
  • Office Stability: Limited new office construction will keep vacancy low and support rent growth, particularly for Class A assets in the CBD, maintaining a landlord-favorable environment [4].

Sources

  1. Lee & Associates: Q3 2025 Savannah Industrial Market Report
  2. MMG Real Estate Advisors: Savannah Q3 2025 Market Report
  3. CBRE: Savannah Industrial Figures Q3 2025
  4. Gilbert & Ezelle: Savannah Office MarketBeat Q3 2025
  5. Cushman & Wakefield: Savannah Industrial MarketBeat Q3 2025
  6. Georgia Southern University: Economic Monitor Q1/Q2 2025
  7. TenantBase Proprietary Market Data (Savannah - Last 90 Days)

Information in this report is aggregated from various third-party sources and synthesized using artificial intelligence and other research tools. While we believe these sources to be reliable, we cannot guarantee the absolute accuracy or completeness of the data. This report is intended for informational purposes to provide market insight and should be independently verified prior to any use in a real estate transaction or legal commitment.