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WASHINGTON, DC—Construction costs are rising. We know that. What we don’t know is what will happen with interest rates. So before we can answer the question posed yesterday—which is worse, rising rates or rising construction costs?—we need to nail down somewhat a timeline about when rates will start to rise before we can compare that scenario to construction costs that are rapidly becoming downright frightening. A query to the Federal Reserve Bank, we suspect, would be a waste of time. The next best option is to ask people on the ground, grappling with this issue every day as they make decisions about development, acquisition, dispositions and refinancing. So we did.

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