“A key underlying theme that can be derived from looking at the findings of the Wave 15 NIC Executive Insights survey as a whole is uncertainty. Uncertainty around the need for seniors housing and care operators to use temporary and agency staff, ability to grow NOI amid rising costs of labor and PPE, the pace of sales in light of consumer concerns about being able to visit loved ones, and the direction of record low occupancy rates. When (and how) life as we knew it will settle into a new normal are all being driven by the durability of the pandemic.” --Lana Peck, Senior Principal, NIC
As the leading data provider for the seniors housing and care sector, the NIC MAP® Data Service (NIC MAP) tracks occupancy, asking rents, demand, inventory and construction data for independent living, assisted living, memory care, skilled nursing and continuing care retirement communities (CCRCs), also referred to as life plan communities, for more than 15,000 properties across 140 metropolitan areas. NIC MAP currently tracks 1,208 not-for-profit and for-profit entrance fee and rental CCRCs in these 140 combined markets (1,137 in the 99 combined Primary and Secondary Markets).
The 2020 NIC Fall Conference, though held on a virtual platform, presented all the relevance, insight, and expert analysis that attendees have come to expect from the industry’s premier event. Always a staple, sessions focusing on valuations this year were, for some, of particular interest. Amidst a historic global pandemic, which has driven sharp declines in occupancy rates, increased costs, drawn unprecedented media attention, and hastened operational disruption, NIC hosted two discussions on how all of this is impacting valuations across both seniors housing and skilled nursing property types.
The Labor Department reported that nonfarm payrolls rose by 638,000 in October and that the unemployment rate fell to 6.9% from 7.9% in September. This suggests that the employment recovery from the COVID-related drop in March and April continues. Moreover, the increase is stronger than it seems on the surface because it includes a 147,000 decline in temporary Census workers. The consensus estimates for October had been for a gain of 580,000. Roughly 12.1 million jobs have been recovered during the May to October period. This is a little more than half the 22.2 million jobs lost since the pandemic began. The pace of improvement is slowing, however. In July, the economy added almost 1.8 million jobs and another 1.5 million in August. Gains slowed to 672,000 in September and 638,000 in October