Vacancy was tightest for specialized industrial space in the fourth quarter, while asking rents increased and net absorption hit never-before-seen levels at the end of 2021.

Specialized industrial space had the lowest vacancy of all industrial properties at 3.5%, a decline of 20 basis points from Q3 figures, according to Brandon Hardin of the National Association of Realtors. Vacancy rates for the niche asset class are up 0.1% this quarter, while asking rents have increased 7.5% year-over-year as of Q1.

Net absorption accelerated quickly from the low of 2.9 million square feet recorded in Q2 to a high of 9.6 million square feet in Q3 and 9.5 million square feet in Q4, the highest levels NAR has observed since the third quarter of 2016.  And as of January 6, net absorption for specialized industrial hit nearly 10 million square feet, a historic high.