Middle Market Digest: This Week in Southwest

Los Angeles is welcoming a huge new supply of apartment units this year—nearly 10,000 in total. While there has been some concern about how this new supply might impact rents and multifamily vacancy rates, new reports show an increased velocity of absorption that should office the new supply. It is no surprise that all of the new development news this week included multifamily construction throughout the Southwest region. Still, most of the transactions were for commercial product, from industrial investment to medical office and retail. 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

LOS ANGELES—Industrial rents in Southern California have increased 14.1% year over year for the second quarter of the year. The Inland Empire market saw the biggest increase in rent growth, up 24% year-over-year. Los Angeles followed with a 9% increase in industrial rents followed by Orange County with a 7.5% increase and Ventura with 1.6% gain in rental rates.