First few Article Sentences
The senior living industry continues to build out and refurbish its footprint throughout the United States, regardless of less than optimal occupancy rates of 88 percent for independent and assisted living facilities in Q4 20181. The need for these facilities will continue to grow in the coming years as increasing numbers of the “silver wave” transitions out of their homes and into independent and assisted living facilities.
The end of 2018 marked the first time since 2015 that consumers’ increased demand for seniors housing kept pace with the increase in the inventory of new units, according to the National Investment Center. The unit absorption rate is increasing, meaning operators have an opportunity to expand operations, but they must be selective and opportunistic when purchasing existing facilities or planning for new development. We seek to outline how these operators can cost effectively mitigate the construction risks of new senior living facilities.