As 2015 approaches, seniors housing joins most commercial real estate sectors in celebrating a slow-but-successful turnaround. To kick off the New Year, a number of industry experts have revealed their predictions, which include increased construction, continued responsible lending and skilled nursing strategies.
Professional services that have traditionally led demand for office space, including finance, insurance and real estate, have finally made a comeback after a slump following the recession. Office market experts hope that the sectors, collectively referred to as FIRE, will now join with the tech and energy industries to heat up office demand in primary cities in 2015.
The recent $8 billion sale of IndCor Properties, an industrial REIT owned by the Blackstone Group, marks one of the largest portfolio purchases since the recession, but it comes as no surprise to capital markets experts, who say smart companies loaded up on lower-priced assets and then waited for an economic comeback.
Annapolis, Maryland-based Revista unveiled its new database on just about every medical office building (MOB) in the country, as well as construction data on the sector. Also, the Washington, D.C.-based Advisory Board Co. detailed how the design of the new MOB buildings should focus on patient convenience.
Office landlords have started to shift back into the driver’s seat across the world, according to a recent Cushman & Wakefield study. Though some political instability and pockets of overbuilding keep expectations from soaring too high, the general consensus is that most markets will gain rents and occupancy by 2016.
Pennsylvania, the second state admitted to the union, is also one of the oldest in terms of population age—but seniors housing providers there say the government isn’t doing enough to address the oncoming wave of elderly need.
According to a recent survey of more than 4,000 baby boomer households in the United States, about three-quarters of those born between 1945 and 1964 do not want to move into a seniors housing community anytime soon.
During a JLL webinar about the future of U.S. manufacturing, held on Nov. 11, experts said that it is clear that more companies today are investing in or considering new manufacturing facilities stateside. The only problem, said JLL executives, is that the skill level required for these new facilities has risen above what the average community can provide.
Large technology firms are launching pilot programs with select seniors housing developers and care managers to increase the use of remote, non-intrusive health monitoring in both single-family homes and large facilities.