Developers should break ground on new projects now, while the cost of capital remains low—despite rising inflation, according to one industry expert.
"The question my clients ask me almost every single day is, do I put the shovel in the ground today or do I wait a year from now when we might see lower inflation. The bottom line is it's better to put the shovel in the ground today," CBRE's Spencer Levy told CNBC last week. "Yes, inflation is as high as it's been in years, but that's with respect to goods and labor. But the cost of capital is still relatively low."
Levy predicts that demand will keep pace and shortages in housing and industrial will persist into the next year, and says "the cost of capital is lower today than it will be a year from now."
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