Being last in line doesn’t always mean getting the worst seats. Buyers of the most subordinated tranche of a commercial mortgage-backed securities deal, for example, get a front-row view of the debt they hold, and those seats have become increasingly valuable.

Three experts give PrivcapRE their thoughts on the state of commercial RE debt investing as asset values continue to improve, yields tighten, and rising interest rates loom

There are opportunities in commercial real estate debt, particularly vintages, Robert Lieber of C-III Capital Partners tells PrivcapRE

Compressing yields and a rising number of RE debt players have led to fears that the debt opportunity is over. The real issue is how far managers will go to hit their target returns.

LPs regained their appetite for debt funds in 2013. The outlook for the market remains strong. But the funds are not without risk.