Developers Make Financial Adjustments for Pandemic Regulations

Developers are starting to include new health and safety regulations and flexibility into development plans for upcoming projects. This includes making financial adjustments to comply with new regulations and adapt to market uncertainty. This is particularly true for institutional developers, who are forging ahead on projects.

“Developers are starting to make adjustments to their financial performance as they start to actualize their development plans,” Tom Harrison, VP and managing partner of Johnson Carlier, tells GlobeSt.com. “We are seeing the more savvy developer starting to carry certain contingencies for the unknown and also accounting for some schedule contingencies for the what if. The typical developer realizes that development can’t stop and although the financial markets are somewhat unstable there is still a significant amount of cash and debt that needs to be placed from the capital sources whether they be family offices or REITs.”