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:
The share of projects stalled due to financing problems has nearly doubled since 2008;
1 in 5 stalled projects are directly resulting from financing problems;
Existing stalled design projects account for a year’s work of construction activity; and
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.