Investors are still bullish on multifamily investment, but are beginning to look in suburban markets. This week Marcus & Millichap released a report showing increased activity in the Inland Empire, and sales in Phoenix markets are also active. 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

INLAND EMPIRE—Investors are starting to target the Inland Empire for multifamily investment, according to a report from Marcus & Millichap. In the market, buyer competition for smaller Class B and C assets remains intense as a construction dearth and continued household creation enhance renter demand. Competition among investors will maintain upward pressure on property prices, yet prices will remain well below those in Los Angeles and Orange counties. The Inland Empire's average cap rate sits 70 to 100 basis points higher than returns available in nearby coastal markets. Deal flow is likely to slow in early 2017, however, as investors factor higher borrowing costs into underwriting. A gap between buyers' and sellers' expectations could linger throughout the first half of the year. In San Bernardino County, 1980s-vintage product off Interstate 10 remains a target, with trades in the high-5% to mid-6% returns. Properties off Interstates 5 and 215 in Riverside County will garner slightly lower yields in the mid- to high-5% band.