Middle Market Digest: This Week in Southwest

Development activity isn’t slowing down. This week in the Southwest market, there were several ground breaking and deliveries of new construction product. Residential and multifamily overwhelmingly dominates the construction news in the Southwest; however, a significant retail renovation in Huntington Beach was also announced this week. Investment news, on the other hand, continues to be diverse, with many industrial and office transactions in addition to ample multifamily deals. The biggest news this week is the release of more first quarter reports. NAI Capital reports strong multifamily rent growth throughout Southern California, with Los Angeles leading the region. The self-storage market is also set for strong activity this year, fueled by development and strong employment growth. Here’s a look at this week’s trends, announcements and deals that you may have missed in Southern California, Utah, Arizona and Nevada.

BY THE NUMBERS

Southern California multifamily rents were up 3.1% year-over-year in 1Q18. Los Angeles led the gains with a 4.5% increase in multifamily rents. The Inland Empire also saw significant rental increases, up 2.9% for the quarter. Although the market saw significant increases, average rental rates remain the least expensive in the Southern California market with average rental rates at $1.40 per square foot. Ventura County multifamily rents were up 2.6%, inching the market closer to Orange County at an average of $2 per square foot. Orange County had relatively flat rental rate gains, up only .5%, with average rental rates hovering just above $2 per square foot.