Developers are battling higher costs and approval processes that are fraught with hurdles, but those challenges compound themselves for mixed-use megaprojects.
“The biggest challenges today are threefold: the cost and availability of capital, the time and financial burden associated with permitting new construction, and building consensus among multiple stakeholders,” said Fallon Co. CEO Michael Fallon. Although none of these hurdles are new, developers also face higher interest rates and entitlement processes that can stretch for years. Meanwhile, insurance costs are climbing, climate risks continue and utility constraints are starting to dictate feasibility, he added.