GlobeSt.com: What challenges do you see for investors in 2017?

Westfield: Availability may become a problem as investors continue to seek caps above 5 to 6%, but as sellers are able to achieve such valuations based on market frothiness. One benefit of this is the emergence of additional private REIT and syndicated fund models that are allowing investors to see fee-based income and cash flow dividends as the market corrects itself in the short-term.

GlobeSt.com: What advice would you offer to commercial real estate investors for 2017?

Westfield: Stay dedicated to analysis and diligence. Too often we see investors cutting corners as markets become competitive, in an effort to secure a deal. Market cycles occur within and around us and prudent investors are not only able to weather any forthcoming storms, but also thrive in them.

ATLANTA—The commercial real estate markets are changing—including the lending markets. We haven't seen much impact on these fronts yet, but we could see some shifts in 2017 and beyond.

GlobeSt.com caught up with Kurt M. Westfield, director of investment at WC Companies, to get his thoughts on the matter in part three of our exclusive interview. You can still read parts one and two: One Major Commercial Real Estate Concern for 2017 and What Will Lending Regulations Look Like Under Trump?

GlobeSt.com: Do you expect any movement toward class B or class C properties?

Westfield: Yes, but solely as a value-add proposition. As fringe markets expand from the central nucleus of the core markets, rent rates are also expanding outward and allowing investors to improve C assets to Bs and convert B assets to As, in areas where new construction, retail development, and a strong core are also present.

GlobeSt.com: What challenges do you see for investors in 2017?

Westfield: Availability may become a problem as investors continue to seek caps above 5 to 6%, but as sellers are able to achieve such valuations based on market frothiness. One benefit of this is the emergence of additional private REIT and syndicated fund models that are allowing investors to see fee-based income and cash flow dividends as the market corrects itself in the short-term.

GlobeSt.com: What advice would you offer to commercial real estate investors for 2017?

Westfield: Stay dedicated to analysis and diligence. Too often we see investors cutting corners as markets become competitive, in an effort to secure a deal. Market cycles occur within and around us and prudent investors are not only able to weather any forthcoming storms, but also thrive in them.