Despite growing concerns around the long-lasting effects of coronavirus, research shows that the senior housing and care industry has already seen a resurgence of interest, according to a report released last week.
With little to no change in rent collections, the commercial real estate firm Jones Land LaSalle (JLL) released their Senior Housing & Care Investor Survey and Trends Outlook to expand on these findings. The report summarizes the responses of investment developers, private equity investors, sales professionals, and other stakeholders. A key theme from the survey respondents reveal investors are gravitating back to the more need driven or traditional senior housing components. Since the last survey in January, the virus has increased the interest of Assisted Livings as the biggest opportunity for investment by 15%. A substantial increase, while in contrast Independent Living saw a decrease of 8% during the same time frame.
The report also details the key trends we are noticing in 2020 amid a global pandemic. Operators are expecting stabilized operating expenses to normalize at 20% to 50% of the current COVID premiums. This comes after the report authors expressed that “Medium and long-term investment sentiment is still strong as experts prepare for the “silver tsunami,” with the leading-edge baby boomer now within a ten-year investment cycle of occupancy.” This provides hope to the senior care sector as most are uncertain of the near future.
Due to the pandemic, the senior care segment is also noticing an accelerated trend towards innovation with the emergence of new components, such as technology, infrastructure, and design. Although we still have some time before we see an upward trend, the foundation of senior housing is being set to weather the storm and prepare for the influx to the market.