Vacancy rates for industrial space are continuing to rise, but experts say there's still no reason to worry.

Indeed, even though the vacancy rate has been creeping up for four consecutive quarters to hit 4.7% in Q2 2023, that level is even with the highest levels ever recorded in the industrial market prior to the pandemic, in the view of CoStar Group.

Industrial net absorption was down 60% in the quarter compared to the prior year, but remained positive. Furthermore, the very low vacancy rates reached at the height of the pandemic have helped cushion landlords from softening tenant demand.

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