The industrial market continues to be the major highlight in theSouthwest region. In fact, a new study from Kidder Mathewshighliegted the success in the market and the extended runwayahead. Then, the deals backed up the rest, with huge sales andpricing that continues to soar. Here, we take a look at whathappened across the political landscape this year. Here's a look atthis week's trends, announcements and deals that you may havemissed in Southern California, Utah, Arizona and Nevada.

BY THE NUMBERS

LOS ANGELES—The Los Angeles industrial market isn't slowingdown, and gains are expected well into the future, even asoccupancy costs rise. Net absorption was negative in Q2 at 128,433square feet, and this is the first quarter of negative absorptionsince 1Q16. The San Gabriel Valley recorded the most net absorptionwith 226,780 square feet of occupied space added to the market. Weexpect this to grow further with over 2.4 million of square feet ofconstruction looking to be added in the upcoming quarters. SouthBay recorded the largest negative absorption at over 300,000 squarefeet, which could be correlated to the lack of available inventory.Leasing activity stayed strong in Q2 increasing over 500,000 squarefeet from the prior quarter reaching over 5.8 million square feet.We believe that activity shall continue its growth in the upcomingquarters with the addition of 4.9 million square feet of newconstruction coming to market. Currently the vacancy stands at2.1%, which is a 10 basis point increase from last quarter and 20basis point increase from the year prior. The vacancy rate has beenranging between 1.9% and 2.1% since Q4 of 2015. With thisconsistent pattern we expect it to continue throughout the upcomingquarters. The average asking rental rate at the end of Q2 is $0.84per square foot on a triple net basis per month. Year-over-year,the asking rate is up $0.06 from Q2 2016, a 7.6% increase. Thecurrent asking rate is the highest on record and seems tocontinue.