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Building Momentum: Construction and Risk Post Recession Survey

Published with GlobeSt.com

Decision-making in any business is complex, but so many variables can affect a commercial real estate development that deeper insights into all facets of risk are needed.

To better understand how the industry copes with construction risks, Partner Engineering and Science, Inc. and GlobeSt.com continue efforts to identify and evaluate the concerns of industry participants with this latest in-depth survey, focusing on current market trends and risk management policies and practices in the commercial real estate industry. In this survey, we asked two key groups, lenders and developers/investors, to evaluate the current state of Construction risk management practices and how those practices affect the current business environment. We also wanted to learn more about survey respondents’ experience with failed construction loans and projects, and the factors contributing to the failures.

The responses suggest that while the industry’s prospects appear to be im-
proving over the near term, the financial crisis of 2007-2008—and its lessons 
about prudent underwriting and deal selection—is still very much in the minds of market participants as they evaluate credit and construction risk of their deals.

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