Chavez tells GlobeSt.com that the multifamily market in the IE and San Gabriel Valley typically trails the market trends that begin near the ocean on the west side of Los Angeles. Buyer momentum hits “first in the SGV, then to about Upland, then to just west of the 15 (freeway). Now it's creeping on the east side of the 15,” Chavez says. “But quality of the product seems to play a bigger role this time around. The buyers have become a little more selective on the properties they like, but the deals are in the IE.”

He adds that his most current multifamily listings are attracting multiple buyers and, in many cases, never hit the open market.

The recession hit the IE and San Gabriel Valley particularly hard. But now, with the area's warehouse space expanding, new workers are expected to be looking for living spaces. “The vacancy rate in the last two years has dropped considerably, even in the hardcore IE areas,” Chavez says.

The San Gabriel Valley is also well-known for its large Asian community. “Asian money likes SGV,” Chavez says. “They have familiarity there and like the real estate. Their investment is definitely long-term and they approach it as such. Many don't seem to need the immediate high return, so they will look at deals that have a bit of a suppressed cap rate as long as the quality is there. So, in turn, the suppressed cap rate becomes the norm. Hence the movement to get deals moves east.”

As reported earlier on GlobeSt.com, Lee & Associates issued an industrial market report that has that sector also on the rise in the Inland Empire.