Last summer, we were big advocators for the AIA’s innovative idea to establish a database of stalled projects. As we shared earlier, such a network would allow potential investors to finance halted projects deemed “credit-worthy”; thus, projects that may not acquire the necessary financial backing due to the lack of available credit may be able to be built thanks to public/anonymous investors. This initiative, which has been in effect for a mere 2 and a half months, could be a great opportunity for entreprenauial architects as the database provides a perfect platform for information and interaction. So far, the AIA reported that the database contains 36 projects worth approximately $1.2 billion with 50 investors – and those numbers are only expected to increase as efforts of the initiative are more publicly known. “This effort by the AIA to match projects with investors has no precedent we know of, and so we have to be pleased with the development of the database so far,” said AIA President Jeff Potter, FAIA. “We won’t be satisfied, however, until we see deals being consummated at a rapid pace as a result of our efforts.”
More about the database after the break.
The easy-to-naivgate website allows architects to register and share information about their projects, and the website also allows potential investors to view the projects and share what projects they are interested in. As we shared earlier, every two out of three architects has at least one stalled project due to lack of financing, and this network could be the break our industry needs to prevail during economic hardships. The database offers the perfect remedy for projects stalled only for financial reasons by bridging the gap between architects and investors.
We applaud the efforts of the AIA for establishing this network as it will lessen construction delays and help push our industry forward. In fact, according to a study by George Mason University economist Stephen J. Fuller, each $1 million in new construction spending supports 28.5 full-time, year-round-equivalent jobs.
Check out the stalled projects database here to see if there’s an opportunity for you to get involved.