Savannah, Georgia

LOCAL ECONOMIC GROWTH for SAVANNAH
SAVANNAH SUBMARKETS

Savannah Apartment Market Summary
The vacancy rate in the Savannah market has risen dramatically over the past year to 9.5% as compared to 4.8% reported one year ago. This spike can mostly be attributed to two factors, a slow down in demand and an increase in new development. Last year’s dramatically lower vacancy rate was due to a decrease in the apartment supply. This year there were (-572) units converted to condominiums as compared to (-1,540) in July 2006 and new completions increased from 144 units added last year to 974 new completions as of July 2007.

Development in the Savannah market continues at a strong pace with 1,168 units currently under construction and 1,348 proposed units. Apartment starts at 1,008 are at a four year high. The Savannah West and South submarkets have the majority of development activity while conversion activity was strongest in the east and south submarkets.

Average rents continue to increase and are currently $749. Same-store rents have risen 2.9% over the past year and 6.8% in the past two years, a $49 increase. Based on the development pipeline the vacancy rate is expected to remain at or above 10% in the coming year.

Market Data Information Source: © August, 2007 Real Data Aptindex