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Contractors, owners wait out high interest rates

May 14, 2024


With nearly 45 years of experience under his belt, Monte Thurmond may have seen this movie before.

The executive vice president for AECOM Hunt, an Indianapolis-based general contracting firm, understands the implications of higher interest rates on construction activity, and that strain is starting to play out now, Thurmond said.

“We’re certainly seeing a lot of pressure on almost all the commercial real estate projects because historically the majority of those types of projects are going to be taking some kind of debt instrument in order to back up any of the equity side of the equation,” said Thurmond. “[High rates] are impacting current attempts to bring projects to the market.”

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