As challenges persist in both skilled nursing and seniors housing fundamentals, pricing trends have differed over the past couple years. We have seen a decrease in the price per bed in the skilled nursing sector. But at the same time and even with today’s more challenging operating environment, seniors housing price per unit has been relatively steady which shows that buyers are bidding at relatively high pricing levels for seniors housing properties.
Seniors housing is a multifaceted property type in commercial real estate, in part, because it is comprised of several different housing and care products designed to meet the diverse needs and desires of the older consumer. Product segments range from independent living, which focuses on hospitality and lifestyle services for healthy, active seniors, to assisted living for residents who are not fully independent and need help with daily activities, to memory support and nursing care units, which provide residents round-the-clock licensed, supervised medical care. Any of these product segments may be found as a stand-alone building, and they are frequently combined in one or two buildings or clusters of buildings to form a campus of continuing care.