LOS ANGELES—Secondary markets in the Southwest continue to grow, with increasing activity in the multifamily and office sectors. Phoenix in particular has a great year with rising rental rates and decreasing vacancy rates in multifamily. In Southern California, the industrial market remains the hot story with plenty of investment activity and new development on any available land. 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

TUSCON, AZ—Vacancy rates fell and rental rates rose in the Tucson multifamily market in the first quarter of the year. Apartment vacancy fell 40 basis points to 6.5%. Northern portions of Tucson are experiencing some of the lowest vacancies. Northwest Tucson, Catalina Foothills and Northeast Tucson submarkets are all in the low to mid-5% range. Rental rates are on the rise and have reached $693 per month in the first quarter. This marks a 3.6% increase in the past year. Rental rates have risen in each of the past seven quarters. Rental rate gains were recorded across all property classes with class-A buildings posting the healthiest jump in rents at 6% year over year. Total transaction volume could reach its highest point in more than a decade by the end of this year. Prices fell slightly, but cap rates compressed as well. The median price in properties sold during first quarter was $37,700 per unit, compared to the median price of $42,500 in 2016. This reflects a shift in the age of properties changing hands. The mix of properties involved in transactions will be the determining factor in pricing as the year unfolds.