PHILADELPHIA-Apartment fundametals around the metro area here are on the upswing, and with that, investment activity could heat up, contends a Marcus & Millichap report on the sector's third quarter. Easier financing coupled with improvments could lead to sales picking up next year.

Vacancy is forecast to decline 20 basis points this year, to 6.3%, and the firm points to rents growing 1.2%, to $1,014. This is the first growth period for rental rates and a decrease in vancany in the area in two years, the report says. In addition, landlords are slowing the concessions they give to tenants as demand rises.

Part of what helps the sector right now is employment growth. About 24,000 jobs are primed for addition this year, as opposed to 100,000 eliminated last year.