AIA Website Aims to Connect Stalled Projects with Lenders

The American Institute of Architects (AIA) has released a report that examines construction projects across the country that are currently stalled and the reasons for them being stalled – namely a lack of financing.  Some key findings include:

1. The share of projects stalled due to financing problems has nearly doubled since 2008;

2. 1 in 5 stalled projects are directly resulting from financing problems;

3. Existing stalled design projects account for a year’s work of construction activity; and

4. Nearly all of the stalled projects were relatively small – nearly half being under $5 million and 85 percent costing less than $25 million.

In an effort to tackle this problem, AIA has launched a “Stalled Projects” website, which tries to match project stakeholders (architects, owners, developers) with private lenders.  The site functions much like a “match.com” in which project stakeholders can upload relevant information concerning an existing stalled project and lenders can then peruse the site for potential funding projects.  Please visit the site here: www.aia.org/stalledprojects.