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LOS ANGELES—What will the finance picture look like for commercial real estate in 2015? Will interest rates rise? Will underwriting standards tighten? What will impact the availability of capital? GlobeSt.com asked five experts from locally based firm George Smith Partners five different questions about the lending environment next year and got their predictions for the foreseeable future.

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GlobeSt.com: Most believe that a rise in interest rates is inevitable in 2015. Where do you anticipate interest rates to be next year?

Gary E. Mozer, principal and managing director: I do anticipate interest rates are going to rise in 2015, but only slightly. Credit spreads will also widen due to Dodd Frank. In addition, there will be some pressure on the 10-year treasury as the economy recovers and the Fed eases, although this pressure will be marginal due to the world economy being soft. As the world economy recovers in 2015, we will see real rate movement, as well as inflation. That said, outside of any Black Swan event, which is unforeseen at this point, 2015 should not experience any significant changes in interest rates from 2014.

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GlobeSt.com: Are there outside political, economic or other factors that will impact the potential availability of capital?

David Rifkind, principal and managing director: Deflation, falling oil prices and continued geopolitical uncertainty are the major worries. Direct investment in US real estate by foreign investors and indirect investments by sovereigns in funds that invest in US real estate have been large participants in the domestic market. Protracted economic trouble at home, coupled with falling energy prices, may impact their ability to invest in the US in 2015. On the other hand, the US economy is the bright spot globally. I expect that the availability of capital in the market will be ample, efficient and competitive. However, geopolitical concerns will result in more credit-market volatility in the coming year.

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GlobeSt.com: Many believe underwriting standards will tighten in 2015. Do you agree?

Steve Bram, principal and managing director: I think underwriting standards will generally stay the same in 2015. In some areas, like residential SFR lending, they are becoming more aggressive. In areas such as hotel lending, they are becoming more conservative, where lenders now look at a trailing 24 months' income instead of a 12 months'. While we are starting to see some small CPI increases, they are not yet translating to increased rents. But a stronger economy is allowing lenders to make more aggressive assumptions about tenant rollover.

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GlobeSt.com: Will the changing bank regulations with Basel III impact banks' lending practices in 2015?

Gary M. Tenzer, principal and managing director: We have begun to see the effect of Basel III on the commercial banks as several banks indicated that they are widening their spreads between 12.5 and 25 basis points to offset the new capital reserve requirements imposed by the new regulations. Banks that have not widened as yet have indicated that a potential widening is on the horizon.

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GlobeSt.com: What properties do you see lenders favoring in the new year?

Malcolm Davies, principal: In 2015, we will see lenders financing every asset and asset class as long as there is decent cash flow in place or a strong business plan to increase and generate further cash flow. In terms of developments, we will continue to see financing escalate, with lenders expanding from multifamily into for-sale residential, retail, industrial and hotel developments, with financing mostly provided by banks and debt funds. Outside of developments, retail, office and industrial properties will all be strong candidates for CMBS, life companies and balance-sheet lenders, while multifamily will continue to be the asset of choice for the agencies. And finally, condos, subdivisions, housing and land development will all be strong candidates for the debt funds, where traditional financing is still relatively weak.