PHILADELPHIA-Apartment fundametals around the metro area here are on the upswing, and with that, investment activity could heat up, contends a Marcus & Millichap report on the sector's third quarter. Easier financing coupled with improvments could lead to sales picking up next year.

Vacancy is forecast to decline 20 basis points this year, to 6.3%, and the firm points to rents growing 1.2%, to $1,014. This is the first growth period for rental rates and a decrease in vancany in the area in two years, the report says. In addition, landlords are slowing the concessions they give to tenants as demand rises.

Part of what helps the sector right now is employment growth. About 24,000 jobs are primed for addition this year, as opposed to 100,000 eliminated last year.

Development is also up slightly, with about 900 units coming on line this year, up from 442 in 2009. However, the addition is only a 0.4% increase in the area's overall stock. There are about 4,300 units planned bu not under construction.

Meanwhile, Marcus & Millichap brokered the $1.7-million sale of the 32-unit Campus View Apartments in Elizabethtown, PA. At the time of the sale, 30 of the units in the asset were occupied.