Among other effects, there will be a negative reaction for retail REITs, says Matt Kopsky with Edward Jones.

A joint venture of Trammell Crow Co. and Elm Tree Funds was awarded a 20-year build-to-suit lease in August with the General Services Administration for the project.

JP Morgan and Mack Real Estate are providing $294 million for the luxury condominium tower. Construction on the 22-story building that is being built by John Moriarty & Associates has begun.

The asset class is already in high demand with narrow spreads, and can absorb rising interest rates to a greater degree than other assets.