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.