Commercial real estate lenders are pulling riskier loans in fear that underwriting standards were too loose, reported the Associated Press.

Lenders have been requiring significantly more equity to get projects rolling, while the cost of borrowing money continues to shoot higher.

Meanwhile, banks are avoiding making loans to commercial real estate projects on concerns about the quality of construction and development loans.

“Six months ago, it was money chasing deals. Now it’s deals chasing money,” said Larry Vogler, president of Prime Group Inc., a Chicago-based commercial real estate developer. “We have to rethink our capital structure. At the same time, there is adequate capital; it’s just more expensive.”