Middle Market Digest: This Week in Southwest

The Southwest markets closed with a strong performance in the second quarter. In Southern California, growth was realized in almost all asset classes. The multifamily and industrial markets lead the growth for the region, with declining year-over-year vacancy rates. The office market, however, saw an increasing year-over-year vacancy rate for the region. The Phoenix market, however, didn’t have the same fate. The office market is seeing record high new construction fueled by strong demand. In addition, there were a number of big deals, refinancings and new construction starts this week. 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—Southern California closed a strong quarter in many asset classes. The multifamily vacancy rate fell to 3.9% across the region, down 30 basis points from last year. Los Angeles County led the region with vacancy rates at 3.7%, down 40 points over last year. The Inland Empire and Ventura County both closed the second quarter with vacancy at 3.8%, while Orange County’s vacancy rate was the highest in the region at 4.9%. For the industrial sector, vacancy fell to 3.1% for the Southern California region, down 10 basis points over last year. Orange County led the region with a 2.2% vacancy rate, down 40 basis points from last year, while Los Angeles and Ventura Counties followed with 2.5% and 2.3% respectively. The Inland Empire market was down 30 basis points to 4.5%. The office sector, however, faltered. Vacancy rates for the region were up 10 basis points to 10.1%. The Inland Empire has the lowest vacancy rate, down 50 basis points to 7.8%. Orange County came in second with 10.2% vacancy, while Los Angeles and Ventura Counties closed the quarter at 11% and 11.4% respectively.