MIAMI—Much of the Southeast is booming, but there are still some struggles on the path to commercial real estate success. And even amid the success in some cities, there is a potential danger lurking.

GlobeSt.com caught up with Charles H. Williams, senior vice president and southeast regional manager at KeyBank Real Estate Capital, to get his perspective on the Southeast in part one of this exclusive interview. You can still read part one of this article: 4 Southeast States to Watch.

GlobeSt.com: What sectors, if any, are still struggling and why?

Williams: Both in the Southeast and nationally, there has been a fundamental shift in how the US purchases goods. While the rise of e-commerce has assisted in the growth of the industrial sector, it has hurt that of retail.

Despite growing consumer confidence in today's economy, it's likely that we won't again see the same levels of retail demand as traditional shopping malls and brick and mortar stores slowly become obsolete in today's online retail environment.

GlobeSt.com: What cities are still struggling and why?

Williams: While there may be pockets in every area that are still relatively quiet, the Southeast as a whole has come back very strong. We're currently seeing the secondary and tertiary markets build themselves back up to impressive levels of growth and development.

GlobeSt.com: Are you seeing any "negative" trends in the Southeast?

Williams: We aren't seeing any necessarily negative trends. However, we are concerned for the potential of overbuilding, particularly in the multifamily sector.

Current tenant demand has resulted in an increased number of construction plans However, we're cautiously concerned about the market's ability to absorb all of the multifamily units currently slated for development.

With construction costs rising close to 20%, developers may be looking to push rents higher. However, if there is a greater supply than demand, the competition for tenants may cause a negative outcome. 

GlobeSt.com: How do you expect commercial real estate climates in the Southeast market to change in the quarters ahead?

Williams: In today's strong market, if rates remain low, we don't expect to see much change to the Southeast commercial real estate climate over the next one or two quarters. If we see a run up in rates, that is when we may see the market take a hit.

Despite our own challenges, many international parties still view the US as a safe haven for capital. They know that if they invest in US commercial real estate, they will see a return on investment.

GlobeSt.com: Any other thoughts?

Williams: With interest rates still at historic lows, now is the time to lock in rates for the next 10 years. When the inevitable rate rise occurs, it will move very quickly. I keep telling my clients that the best day to rate lock is today because you don't know what tomorrow will bring.