The American Institute of Architects is spearheading a new initiative aimed at reviving the numerous stalled projects across the country. Since a significant portion of the US economy is construction based – measuring $1 out every $9 of total GDP output – it is imperative to get the industry back on track in order to revive the economy. However, the current obstacle many developers are facing is the lack of lending available by the banking system.
One method that the AIA is implementing in order to circumvent the unwillingness of banks to invest in real estate is to harvest investment from pension funds, and construction consortiums. The AIA is currently compiling a database of stalled buildings that will serve as a menu for potential investors. Any new and innovative methods for jump-starting the design and construction industry will undoubtedly be welcomed, as a recent survey of 700 firms discovered that 63% have at least one stalled project with an average value of $50 million. The results from this pending investigation are expected within the next couple of months.