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CRE Investors Prepare for Silver Tsunami in Seniors Sector

The “silver tsunami” of baby boomers set to enter the seniors housing market over the next decade has real estate developers and investors jostling to establish themselves in the sector to take advantage. According to JLL’s Mid-Year 2018 Seniors Housing Investor Survey, 57% of respondents indicated seniors housing cap rates will compress relative to other asset types, a sign that the sector is drawing investment and competition for product is heating up.

Despite new supply depressing occupancy and a slight decrease in transaction volume year-over-year, seniors housing is being boosted by strong demographic tailwinds. According to the U.S. Census Bureau, by 2035 all baby boomers will be over the age of 65 and the 65-plus population will outnumber the population under age 18 for the first time in U.S. history.

JLL’s Charles Bissell says, “It’s clear that many investors are recognizing the long-term potential of the seniors housing sector, and are seeking to establish a presence in the sector now, even though boomers will not start hitting 80 until 2026. The market continues to become more mainstream, as developers choose strategic infill locations that appeal to a wider swath of potential investors.”

Independent and assisted-living facilities continued to be the most sought-after assets, with 72% of respondents saying they were very or extremely desirable. Free standing independent living facilities were respondents’ second favorite with 58%, ranking them as very or extremely desirable. Freestanding nursing care facilities and entry-fee CCRCs ranked last with 71%, and 66% of respondents ranking them as not so or not at all desirable, respectively.

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*Pictured Devries Place, Milpitas, CA by HKIT Architects


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About Dennis Kaiser

Dennis Kaiser is Vice President of Content and Public Relations for Connect Commercial Real Estate. Dennis is a communications leader with more than 30 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect’s client content operations and is involved in a range of initiatives ranging from content strategy, message development, copywriting, media relations, social media and content marketing services. In his most recent corporate communications roles, he led a regional public relations effort across Southern California for CBRE, played a key marketing role on JLL’s national retail team, and was responsible for directing the global public relations effort at ValleyCrest, the nation’s largest commercial landscape services company. In addition to his vast commercial real estate experience, Dennis has worked on communications and launch strategies for a number of residential projects such as Disney’s Celebration in Florida, Ritter Ranch in Palmdale California (7,200 homes, 22,000 acres), WaterColor in Florida and PremierGarage in Phoenix. Dennis’s agency background included firms such as Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, BoyScouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and Thunderbirds Charities.

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