The US industrial market continued to shatter records in the fourth quarter, with absorption exceeding 500 million square feet and vacancy sinking before 4% for the first time in history to end the quarter at 3.7%, according to new research from Cushman & Wakefield. 

 "We are seeing unprecedented low vacancy and incredibly high demand for industrial space across the United States. Demand is outpacing supply by a wide margin—almost 50 percent—and new leasing activity totaled 879.9 msf, a new record. This level of demand put the market in place to see the first year ever of new leasing activity surpassing 800 msf at year-end," said Carolyn Salzer, Americas Head of Logistics & Industrial Research for Cushman & Wakefield. "This continues to put upward pressure on rental rates, setting a new record of $7.39 per square foot."

Rental rates are up 3.2% quarter-over-quarter and 9.5% year-over-year, according to Cushman data. The national average for net rents was $7.39 psf in Q4, up from 7.16 in Q3 and $6.75 in the fourth quarter of 2020.