The Inland Empire is becomingthe next frontier for multifamily investors looking foropportunities in Southern California. The region has seentremendous job and population growth—thanks in large part to theindustrial sector—and it has created strong fundamentals for themultifamily market. According to a recent report fromNorthMarq Capital, the vacancy rate fell to 3.2%last year, and asking rents grew 3.5% year-over-year to an averageof $1,349 per month.

“A strengthening job market has sparked demand growth,”Shane Shafer, managing directorwith NorthMarq Capital, tells GlobeSt.com. “The Inland Empire hasbeen adding jobs at a faster pace than California and the US as awhole. We are seeing job gains recorded across several differentindustries, the largest being the warehouse and logistics industryfollowed by the education and health services sector. Whenever youbring jobs, you bring population and create some good apartmentfundamentals. That has led to interest and rent growth in the area.These phenomenal fundamentals are driving the market and drivinginvestors to invest.”

In 2019, investment activity is expected to rise in the marketas investors already active will increase their market exposure andnew capital will look to break in.