Multifamily property specialist Mitch Swenson of Spokane-based Tomlinson Black Commercial Inc. tells GlobeSt that as little as two-and-a-half years ago, vacancy here was up to almost 10%. "Across the board we're seeing an improvement in sales of apartments," says Swenson. "Vacancy rates have been our Nemesis here, but the market has tightened up."

Average rents on 20-year-old properties are running of 60-65 cents/sf, with newer complexes able to fetch slightly more, says Swenson, adding that the majority of calls he gets on listings are from investors outside the Spokane area. "When they can't buy anything (in Western Washington) for over an 8% cap, we can entice them with rates of 9.5% to 10%."

Swenson says units that would cost $100,000 in Seattle and Portland can be had in the Inland Empire for $25,000 to $30,000. "Why build for $45,000 a unit when you can buy at these prices," remarks Swenson.