Business Environment | Ideas and Discussion | Senior Housing
By: Morgan Graphman, Director of Business Intelligence, Ascent Living Communities | April 11, 2024
In the dynamic world of senior living, the partnership between operators and owners holds the key to transforming ordinary buildings into vibrant, thriving communities. Operators are tasked with managing relationships with various owners, each with their unique needs, expectations, and strategic objectives. Conversely, owners oversee multiple operators, each bringing their distinct management styles, market insights, and operational approaches to the table.
Business Environment | Economic Trends | Senior Housing
By: Zachary Britton | January 18, 2024
The 2024 capital markets outlook is that much remains the same. Credit is scarce and the capital markets remain unpredictable. Whether the Fed will cut rates in four months, six months, or even nine months, many investors believe that defense is the best offense. The preceding ten years created a fascinating environment with cap rate compression to historic lows and a substantial amount of newly issued debt. Today, the industry is entering a period of transition where cap rates are starting to progress upward, and historic levels of debt are being repriced in a higher cost of capital environment.
Business Environment | Market Trends | NIC MAP Vision | Senior Housing
By: Omar Zahraoui | December 18, 2023
The construction of senior housing communities has faced a myriad of challenges in recent years, evidenced by a marked decline in construction starts and extended construction durations. These challenges have been apparent since the onset of the COVID-19 pandemic, and have been further compounded by labor shortages, a lack of building materials, and inflation. Additionally, the quick and large rise in interest rates orchestrated by the Federal Reserve has led to higher construction financing costs, limited availability of debt, and increased development costs. These combined factors have prolonged the time it takes to bring a senior housing project from the planning stages to the construction phase and eventually to its final delivery and eventual opening.
Actual Rates | Business Environment | NIC MAP Vision
By: Omar Zahraoui | October 05, 2023
The senior housing market appears well-positioned for a steady and ongoing recovery, with occupancy levels expected to reach/exceed pre-pandemic levels in 2024, barring unforeseen challenges.
