Monday, November 4, 2013
Albuquerque Real Estate Appraiser David Pearson shared a recent issue of Seniors Housing Research Report from Marcus & Millichap, focusing on commercial real estate development trends in the second half of 2013. The report observes that overall "demand for seniors housing units is intensifying thanks to a rapidly improving housing market. . . . In fact, occupancy in both independent living and CCRCs is anticipated to rise this year, spurring rent growth in both product types."
In certain areas of the country, including the southeast and Texas, new development may be slowed by the still soft market for recently constructed facilities. Interestingly, the report predicts growth in dementia care units, while at the same time predicting occupancy rates for traditional "skilled nursing" facilities will continue to decline. As Shakespeare might observe if he were writing today, "would a nursing home by any other name smell as sweet?"