Rising Rates, Construction Costs Force Developers to Get Creative With Financing

AI Summary

Higher interest rates and construction costs are slowing commercial real estate development in 2026, prompting developers to seek alternative financing. A contractors’ survey found that 55% of respondents had delayed, canceled, or scaled back at least one non-data-center project.

Rising construction costs are slowing the flow of commercial real estate development in 2026 with developers often seeking innovative ways to bring their projects across the finish line. In an Associated General Contractors of America survey released in September, 55 percent of respondents reported delaying, cancelling or scaling back at least one non-data center project […]