MIAMI—What are the biggest obstacles to getting industrial deals done? And, more importantly, how do you overcome those obstacles? CBRE's Jack Fraker, who will be on hand at RealShare Industrial Miami next week, offers some insight.

So far as challenges, he tells GlobeSt.com there are five key areas of focus: construction financing requires significant equity contribution and recourse; entitlement issues markets and a few others around the US; interest rates and capital market exposure; perception about markets being overbuilt; and the availability of land, and as a result replacement costs.

“We help manage expectations and work closely with our debt and structured finance group to educate the buyers and advise the sellers that more time will be needed during the process,” Fraker says. “As interest rates rise, cap rates may slightly increase although there is not a direct basis point for basis point correlation.”

From Fraker's experience, most investors are just as interested in the NOI growth potential as they are the spread between cap rates and current Treasury rates. He also expects construction starts and deliveries to accelerate nationally in the remainder of 2014 and into 2015.

“However,” he said, “the 50 million square feet of industrial completions year-to-date and the 125 million square feet currently under construction as of the second quarter 2014 is on pace to still be below the 10- and 30-year historical national averages of 180 to 190 million square feet and 260 to 270 million square feet of annual deliveries.”