ORLANDO—When it comes to multifamily, commercial investor appetites have shifted over the past year. Competition for deals continues to rise at a feverous pitch.

So says Brian Sykes, senior vice president of loan originations with Capital One. Although a few borrowers are starting to express concern over the current pricing for multifamily assets, he tells GlobeSt.com there still seems to be more than enough groups interested in joining bidding wars to win deals.

GlobeSt.com: Do you expect more or less commercial real estate investing in 2016 compared to 2015? Why do you expect more or less?

Sykes: Although common sense would dictate a slowdown in 2016, I do not see a meaningful slowdown, since equity raises are at an all-time high. Investors who are tired of anemic savings and bond rates and are less than enthused by the stock market volatility are clamoring for the attractive yields being offered by real estate funds. One of my clients just informed me that they have already have a waiting list for their newest fund which they plan on rolling out next year.

GlobeSt.com: What are the biggest challenges for CRE investors in 2016? 

Sykes: Rising interest rates are definitely a concern, although we have seen incorrect predictions of rising rates over the past 5 years. A potential rate increase would reduce available leverage and investor returns, thus adding volatility to the already razor-thin prices groups are paying for multifamily assets.

GlobeSt.com: What are the best investment bets for 2016?

Sykes: The best bets in 2016 are the ones that everyone else is shying away from. Locating well-priced deals in secondary markets and buying them with more conservative leverage, for example 70% versus 80%, could make a good strategy for private real estate owners. 

GlobeSt.com: What sectors are you cautious over?

Sykes: At this point is hard to say any one market is a concern as the fundamentals seem to be solid across the board.