The industrial market continues to be the major highlight in the Southwest region. In fact, a new study from Kidder Mathews highliegted the success in the market and the extended runway ahead. Then, the deals backed up the rest, with huge sales and pricing that continues to soar. Here, we take a look at what happened across the political landscape this year. 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

LOS ANGELES—The Los Angeles industrial market isn't slowing down, and gains are expected well into the future, even as occupancy costs rise. Net absorption was negative in Q2 at 128,433 square feet, and this is the first quarter of negative absorption since 1Q16. The San Gabriel Valley recorded the most net absorption with 226,780 square feet of occupied space added to the market. We expect this to grow further with over 2.4 million of square feet of construction looking to be added in the upcoming quarters. South Bay recorded the largest negative absorption at over 300,000 square feet, which could be correlated to the lack of available inventory. Leasing activity stayed strong in Q2 increasing over 500,000 square feet from the prior quarter reaching over 5.8 million square feet. We believe that activity shall continue its growth in the upcoming quarters with the addition of 4.9 million square feet of new construction coming to market. Currently the vacancy stands at 2.1%, which is a 10 basis point increase from last quarter and 20 basis point increase from the year prior. The vacancy rate has been ranging between 1.9% and 2.1% since Q4 of 2015. With this consistent pattern we expect it to continue throughout the upcoming quarters. The average asking rental rate at the end of Q2 is $0.84 per square foot on a triple net basis per month. Year-over-year, the asking rate is up $0.06 from Q2 2016, a 7.6% increase. The current asking rate is the highest on record and seems to continue.