Having experienced arguably the most drastic highs and lows in the past year compared to any other commercial real estate sector, the senior housing market is now poised to do well once again.
Prior to the pandemic, senior living was well-positioned with a drastic uptick in developments and its highest transaction volume in years. Unfortunately, upon the onset of COVID-19 in March 2020, the sector faced a devastating decrease in occupancy rates and halted/paused nearly all projects. During the health crisis, residents decamped from facilities in fear of the virus and communities racked-up costs due to the need to invest in protective personal equipment and make other similar investments.
Stabilized occupancy rates closed Q4 2020 at 82.9% in primary markets and 83.2% in secondary markets as unprecedented lows, according to the fourth annual Seniors Housing Investor Survey and Outlook from the JLL Valuation Advisory. During 2020, volume fell 48% year-over-year to $9.2 billion. Many wondered if seniors would ever feel comfortable living in a residential community again.
Now, the pandemic is hopefully coming to a close and senior living’s fundamentals have improved as vaccinations have driven down death rates and prompted residents to return.
In Q1 2021, volume increased $2.4 billion, which was a nearly 31% year-over-year increase. Additionally, 37% of respondents said assisted living was their most sought-after investment opportunity in 2021.
Considering the undeniable tough times that the senior housing real estate sector has witnessed, it is imperative that we give kudos to the men and women who navigated the sector during this uncertain time. In order to do so, GlobeSt. Real Estate Forum is aiming to highlight the people and firms that continue to drive the sector’s performance.
For the 2021 Influencers in Senior Housing series, GlobeSt. Real Estate Forum will profile the individuals, teams and companies that have had a recognizable and significant impact on the business be it through the vast successes they’ve racked up in completing deals and projects, or the innovations and best practices they’ve introduced to the business.
The Influencers in Senior Housing will be profiled in the November/December 2021 issue of GlobeSt. Real Estate Forum, which will be distributed in early December. Influencers will additionally gain recognition on GlobeSt.com.
The nomination deadline is August 11. To apply, click here.
For additional information, please view the series’ FAQs page.
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Please consider our other available recognitions:
Influencers in Healthcare Real Estate
Influencers in CRE Marketing & Communications