Samsung Invests in Georgia’s Industrial Real Estate for EV Growth

News Summary

Samsung’s property fund is investing heavily in Georgia’s industrial real estate, focusing on locations near key electric vehicle factories. The acquisition of a 151,200-square-foot facility in Calhoun highlights this strategy, indicating a broader expansion in response to rising electric vehicle demand. The industrial market in Georgia, particularly Savannah, is booming due to significant developments, including Hyundai’s $7.6 billion EV plant and planned port capacity expansions. However, challenges, including fluctuating tariffs and rising construction costs, complicate the economic landscape, impacting future investments.

Calhoun, Georgia – A property fund operated by South Korean semiconductor giant Samsung is making significant investments in the industrial real estate market of Georgia. The fund is concentrating on acquiring properties strategically located near major electric vehicle factories, marking a notable step as the demand for electric vehicles surges across the nation.

One of the key acquisitions involves a 151,200-square-foot industrial facility located at 103 Enterprise Drive SW in Calhoun, Georgia. This facility is fully leased through the end of 2023, and its location near Interstate 75 enhances its logistical advantages. This transaction signifies Triten Real Estate Partners’ first traditional industrial purchase outside of Texas, especially in the Atlanta area, indicating a broader expansion strategy in response to current market trends. Specific details regarding the selling party and the sales price for the Calhoun property have not been disclosed, but JLL was involved in representing Triten Real Estate during the transaction.

The industrial real estate market in Georgia, particularly Savannah, has witnessed remarkable growth. The market size in Savannah has nearly doubled, growing from 80.7 million square feet in 2020 to an anticipated 153.7 million square feet by the first quarter of 2025. A significant catalyst for this expansion was the opening of a $7.6 billion electric vehicle plant by Hyundai Motor Group in Bryan County, which is situated near Savannah and has attracted a multitude of suppliers and logistics services to the area.

Further enhancing Georgia’s industrial capabilities, the Georgia Ports Authority is planning to invest over $4 billion to boost container capacity at the Port of Savannah over the next decade. This port has emerged as a critical hub for trade, recording an unprecedented shipment of 5.9 million containers in 2022, aided by a nearly $1 billion dredging program that was recently completed. Experts project that the port will be capable of facilitating around 12.5 million twenty-foot equivalent units (TEUs) annually by 2035, contributing further to the region’s economic growth.

In the southern region, Savannah has seen a substantial absorption of warehouse space—21.5 million square feet was absorbed in 2024, compared to 15.3 million square feet in 2023. This increase in demand has prompted predictions that the area’s industrial vacancy rate, which peaked at 9% in the third quarter of 2024, will likely decrease as more businesses and warehouses respond to the growing user demand.

However, the rapid industrial growth also faces challenges. Fluctuations resulting from previous tariff policies initiated during former President Trump’s administration have created uncertainty in economic conditions. Industry experts suggest that while trade tensions may drive shipping activity from nations outside of China, it could simultaneously lead to reduced material requirements for warehouse storage.

Additionally, the region is grappling with rising costs associated with construction materials and an overall sense of market uncertainty. These factors complicate the economic landscape of the area and could influence future investment and expansion decisions by real estate developers and companies looking to enter Georgia’s burgeoning industrial sector.

Overall, the strategic investments by Samsung’s property fund and the broader dynamics at play in Georgia’s industrial property market underscore a significant pivot toward electric vehicle production and logistics—an area poised for continued growth in the coming years.

Deeper Dive: News & Info About This Topic

• Rebusiness Online: Triten Real Estate Acquires 151,200 SF Industrial Facility in Calhoun, Georgia
• Google Search: Industrial Real Estate Georgia
• Bisnow: Savannah Industrial Growth Poised to Double Despite Headwinds
• Wikipedia: Industrial Real Estate
• PR Newswire: IRG Acquires Well Positioned Central Georgia Industrial Site to Close 2024
• Google Scholar: Georgia Industrial Real Estate