Top 5 Industrial Real Estate Markets in 2022 — Commercial Real Estate Loans

The smallest industrial market on our list, Savannah, Ga., comes in third place. Despite its relatively small size, this may be the next place to invest. JLL’s second-quarter report highlights some of the reasons why. For one thing, the market’s total vacancy fell nearly 5% in the past year to a shocking 0.1% — the lowest among all U.S. markets. This has understandably pushed rents through the roof, and the report indicates rent growth exceeded 20% year-over-year.

Why has this happened? One of the primary drivers of industrial activity in Savannah is the rapid growth of port traffic at the newly expanded Garden City Terminal. A second phase is already underway, well positioned to continue taking advantage of the overhaul of the Panama Canal and the resulting boost in cargo volume. Leasing activity has hit a rapid pace, with many speculative buildings landing major tenants prior to completion, Colliers reported.

One key advantage for potential investors in Savannah is the notably lower costs of acquiring industrial real estate — around $100 per square foot, looking at recently closed deals. While prices are naturally rising, a shortage of available square footage coming to market this year means that the demand dynamic will continue to push asking rates and property values even higher.

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