Latest News

AIA Matches Stalled Projects With Investors

November 8, 2011
/ Print / Reprints /
ShareMore
/ Text Size+

The American Institute of Architects launched an online database - www.aia.org/stalledprojects - that will let developers and architects network with investors interested in lending to projects that have been stalled primarily due to lack of financing.

To populate this database with both stalled projects and investors interested in financing them, the AIA initiated a communications campaign to solicit information about stalled projects around the country from its members and allied professionals. Since going live on Oct. 31, the site has attracted projects seeking a total of almost $230 million in financing. The AIA expects these numbers to grow as word spreads throughout the architecture profession about this initiative.

By creating a log-in and clicking inside the “Get Started Now” box on the site, architects and developers can fill out a form and tell investors about their projects. By clicking in that same box, investors list their companies and tell project leaders about their firms and the types of investments they are interested in making. Once registered, both project owner and investor can see details on stalled projects or peruse investor information.

“In large part the fortunes of the entire U.S. economy rest on whether the design and construction industry can create jobs,” said AIA President Clark Manus, FAIA. “For months, our industry has continued to suffer primarily because banks won’t lend. With this unprecedented online database portal, the AIA has decided to do something that could create more jobs and help grow the economy.”

The site was officially launched in conjunction with an AIA report, “Stalled Construction Projects and Financing,” which noted that the share of projects stalled due to financing problems through August 2011 has almost doubled since 2008; one-in-five stalled projects directly result from financing problems, despite record-low interest rates.

“Since the end of 2008, construction spending in the U.S. has declined by more than a quarter, or by almost $300 billion, with the loss in this sector alone accounting for a 2-percent decline in the size of the U.S. economy,” the report stated. “With residential structures and nonresidential buildings accounting for about two-thirds of total construction activity at present, the losses in home and building construction could have generated another $470 billion in indirect losses to our economy, even if we ignore the indirect benefits from public works construction.”

Relying on data compiled by McGraw-Hill Construction and Reed Construction Data, the report also found:

  • Financing problems account for a higher share of stalled projects in the education and multifamily sector;

  • More than 25 percent of projects reported as stalled due to the credit crunch could qualify for LEED, Green Globes or other green certification status; and

  • Financing issues are less of a factor holding back projects in the manufacturing, private health care and retail environments.


The AIA designed its database to help address this most-persistent impediment facing the design and construction sector. Each $1 million in new construction spending supports 28.5 full-time, year-round-equivalent jobs, according to a study by George Mason University economist Stephen J. Fuller.

Source: American Institute of Architects.

Did you enjoy this article? Click here to subscribe to Supply House Times.
You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

BNP Media's Plumbing Group Visits Grundfos North American Headquarters

BNP Media’s Plumbing Group, comprised of the Plumbing & Mechanical, Supply House Times, PM Engineer (pme) and Reeves Journal brands, recently visited Grundfos’ new North American headquarters building in the western Chicago suburb of Downers Grove, Ill.

8/26/14 1:00 pm EST

Free Webinar: Low Temperature Heat Emitter Options in Hydronic Systems

With proper design, you can create systems that require supply water temperatures no higher than 120° F under design load conditions.

Supply House Times

July 2014

2014 July

In the July issue of Supply House Times, find out who has been appointed as Southern Wholesalers Association's new president. Milwaukee Valve showcases its operations to the Newport News Shipbuilding, Robertson Heating Supply hits a milestone as they celebrate their 80th year in business. Read about the 12th annual training day led by Security Supply, find out who has acquired several Kohler store locations. Also check out the latest products and news for the distribution industry.
Table Of Contents Subscribe

Supply House Times Poll

Industry News Access

What’s your favorite electronic device to access industry news?
View Results Poll Archive

The Supply House Times Store

plumbing-hvac.gif
2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

CS-OflRGBhomepage.jpgWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Premier 125

Premier 125 button

The information SUPPLY HOUSE TIMES uses to rank the Premier 125 is the most accurate we can gather. It is primarily based on responses to a questionnaire we send to the wholesalers in our database, supplemented with information obtained from industry reports and estimates.

STAY CONNECTED

facebook Twitter Updated icon Youtube Updated icon    LinkedIn Updated icon  Google+