U.S. industrial vacancy hit 4.4% in 4Q 2021 as every major market saw declines over the past year. Asking rents in some coastal markets grew by more than 20% in 2021, above the national average of 7.9%. Record levels of new supply are leasing faster than ever, with buildings completed during 2021 more than 80% leased already. Meanwhile, the supply chain crisis persists with no end in sight. Shortages and delays combined with rising consumption are now triggering inflation and challenging industrial production. Looking ahead into 2022, market fundamentals will remain strong, supported by a trend of more spending on goods over services, including a growing share of online retail purchases.