Savannah Industrial Figures Q2 2026

Market Overview

Savannah’s industrial market experienced moderated activity in Q2 2026, with fewer completed transactions despite steady tenant interest. Demand persists, but so do the long decision timelines and deal life cycles which have tempered leasing velocity and net absorption. Bulk deals remained selective and provided some support, though overall momentum was uneven. The market lacked the deal volume necessary to continue stabilizing the smaller and mid-size segments which have been under recent pressure.

Market fundamentals reflect this shift. The direct vacancy rate rose to 10.5%, driven more by slower leasing than new supply. Availability has increased in segments reliant on steady tenant turnover, while larger buildings continue to see periodic interest. More positively, the development pipeline has eased considerably to 4.4 million sq. ft., well below prior peaks, reducing future supply pressure and shifting focus to absorption trends. Numerous tenants remain in the market for space and should lead to a stronger Q3.

Broader improvement will require more consistent deal execution across size ranges, with large users expected to remain active and mid-size tenants providing the key to steadier gains.