Will warehouse growth slow down in Effingham County? Officials share future growth plans
Industrial growth is still a hot topic in Effingham County, where residents are concerned now more than ever that what was once their small piece of country paradise is being overrun by warehouses.
“What we need is a shift in how local leadership defines progress,” said Effingham County resident Nikki Carangelo. “We aren’t really achieving 'economic progress' if we cannot even leave our homes to get to work on time due to inaccessible roads and traffic congestion. We aren’t making 'progress' if neighborhoods are being destroyed and we can’t send our kids to school without worrying about air quality."
Over the last five years, nearly two dozen warehouses have been built in Effingham County, with the majority located along Trade Center Parkway or Trade Center Boulevard around the Georgia International Trade Center.
Data collected by a contingent of environmental groups including One Hundred Miles, the Ogeechee Riverkeeper, the Savannah Riverkeeper, the Gullah Geechee Cultural Heritage Corridor, Georgia Green and the Georgia Conservancy, shows more than 12 million square feet of existing warehouse parcels located near wetland areas and more than 14 million square feet of existing warehouse parcels in designated floodplains.
Square Feet: Warehouse boom threatens coastal Georgia communities, environmental groups say
More: Port Wentworth approves warehouse development, street parking changes and more
Effingham County officials expect warehouse development to slow in 2024
Brandt Herndon, chief executive officer for the Effingham County Industrial Development Authority, said he predicts warehouse growth to slow down in 2024.
Recent data from the last quarter from the ECIDA shows there is just under 16 million square feet of warehouse space and half a million of that is vacant, a vacancy rate is 3.8%. Three million square feet of warehouse space is currently under construction but will not be counted as vacant until complete.
“We currently have six buildings under construction and several recently completed buildings that are not leased yet,” said Herndon. “Also, the cost of construction in conjunction with high interest rates have developers waiting to see if the Feds will lower rates in the next quarter or two.”
Rincon City Manager Jonathan Lynn provided more clarity, saying there are still a handful of warehouses that have been approved that have not been built yet but he expects requests for warehouses to decline.
Rincon’s proximity to the Port of Savannah makes it an attractive city for logistics industries to do business. Lynn predicts warehouse growth will pick up in 2025.
As big rigs travel to and from construction sites, motorists grow concerned that their commute time and safety on the road have not been considered by local officials, nor have the effects warehouse growth has on the environment.
But Herndon said folks living in or around the area should take into account growth coming from neighboring Chatham County, specifically Port Wentworth, as it plays a key role in traffic congestion.
In December 2023, Port Wentworth City Council unanimously approved a development agreement for 762 acres of industrial-zoned property with Atlanta-based SPH 21, LLC.
In October 2023, the Savannah Ghost Pirates announced it would be building the $25 million, 90,000 square-foot training facility and public sports complex in Port Wentworth.
Herndon also pointed to the products that are coming from China and Vietnam, saying production at the Ports has to be factored in.NFI Industries' Savannah transload facility, in partnership with Georgia Ports Authority, seeks to save time and money with this first-of-its-kind facility in Port Wentworth. The partnership and facility, which helps to reduce costs, increase inventory flow and supply chain flexibility ,is also a mark of the Ports' growth in the last decade.
The Ports have grown about 7% consistently over the last 10-15 years, is the third busiest gateway in the country, the second busiest on the east coast and will continue to expand in the future, according to Vice President of Sales and Marketing for GPA Flavio Batista.
Herndon also pointed to the uptick in online shopping, which causes an influx of importing and exporting at warehouses, as well as other contributing factors.
He estimates that 75% of the traffic comes from everyday motorists, not 18-wheelers.
“Some of the trucks on the road are moving trucks – not all of them are but there are some, so we have to take that into account,” said Herndon. “I believe Lowe’s has two warehouses here and things you’re ordering could be coming from them.”
Herndon said warehouses provide job opportunities, which could ease traffic woes as many residents travel to Chatham County for work.
“We want to focus on manufacturing jobs so people don’t have to drive to Chatham – that’s less time on the road,” said Herndon. “You can’t just focus on trucks, you have to look at where all the people are going.”
More: Georgia Ports aims to be national gateway, Lynch declares at State of the Port
Residential growth following manufacturing jobs
Growth is happening in other ways, too. There are three subdivisions slated for construction, with one on 9th Street and two on Fort Howard Road in Rincon. Lynn said combined, they will produce hundreds of new rooftops.
To prepare for growth, Rincon has approved funding for three more police officers. The fire department is fully staffed and was recently upgraded to Class Two, a rating given by the Insurance Services Officer. The company grades fire departments based off their standards to determine property insurance costs. Because of the upgrade, residents will see a decrease in their homeowners’ insurance.
“We've taken all the necessary steps to have better response times, more access to fire hydrants, better equipment and be fully staffed to be able to reduce and mitigate the risk of fires on residential.”
Lynn said growth is a balancing act – once where the city has to determine how to offset the tax burden for residents while still acknowledging that quality of life matters.
“You have to be respectful for their opinions,” said Lynn. “We are always tasked with a difficult job…those larger developments do serve a greater purpose for being able to offset a lot of those areas where we would ask residents to help pay for services. We are definitely mindful of future development in the city. We're also going to explore all possible developments, whether commercial or industrial, to make sure they're going to be the right fit for our city.”
Latrice Williams is a general assignment reporter covering Bryan and Effingham County. She can be reached at lwilliams6@gannett.com. Destini Ambus contributed to this story.
This article originally appeared on Savannah Morning News: Local officials talk growth in Effingham County
