How has the rise in interest rates in 2022 affected lender and borrower strategies in the seniors housing space? Costs flow downhill By Don Pelgrim CEO Wilshire Finance Partners The rise of interest rates has affected lenders and borrowers, specifically with an increase in both borrowing costs and capitalization rates. Seniors housing is not immune to the rising costs of goods and services, which may continue to increase until the Fed’s actions take hold and demand is mitigated by higher costs and expenses. Some facilities and communities may need to …
By Steven Leone and Richard C. Quinn, Spiezle Architectural Group Over the past several years, design trends have painted an interesting picture for future life plan communities that stray from what we have seen for decades. Life plan communities (previously known as continuing care retirement communities, or CCRCs) are nothing new. But with an older population growing and thriving, these life plan communities (LPCs) are shifting away from the traditional continuum of care-based models to a more independent version of health- and wellness-centric focus with little to no care. This …
Five key drivers hold the solution to many labor challenges. By Jennifer Sodo Our industry is in an unprecedented time of staff shortages, stress and burnout. A recent OnShift survey of senior living workers indicated that 90 percent of leadership reported high or elevated levels of stress, and 80 percent of caregivers and hourly employees are facing critical levels of burnout. We know there are a lot of challenges contributing to these numbers, many of which require systemic economic, political and social shifts well beyond the scope of what an …
As he steps into the role held by industry pioneer Jerry Finis, the former REIT executive pushes back against industry headwinds with a new approach to company structure and data. By Jeff Shaw When Jerry Finis, founder and CEO of Chicago-based owner-operator Pathway to Living, began to consider retirement last year, he knew there would need to be a succession plan. Finis founded the company in the 1990s as the assisted living sector began to evolve into a well-defined asset class. Finis was the only chief executive the company ever …
What impact is inflation having on seniors housing and how are operators and owners adjusting? Give residents more options By Chuck Hastings Chief Financial Officer Juniper Communities With wages, food, utilities and other costs still rising, we at Juniper have been adding new price options for residents, and new ways of paying for them, to ease the pain for our customers. We’re also thinking about focusing price increases on level of care. With all that said, it seems the odds of a recession this year are rising, so we need …
By Gregory F. Hagood, Senior Managing Director, and Mary Missbach Dressler, Managing Director, SOLIC Capital Partners The senior living sector was among the hardest hit industries of the COVID-19 pandemic. COVID resulted in the double whammy of a rapid drop in occupancy followed by labor shortages that have caused rapidly escalating labor costs. As a result, senior living facilities in even the strongest markets have faced financial challenges, with Moody’s estimating that were 675 municipal bond delinquencies related to senior living facilities over the past two years representing approximate 25 …
By Connie Wittich, founding principal, Metropolitan Studio Traditionally in the senior living space, we’ve seen the repetition of the same design style. Older, mature, gray and beige hues that complement what we think the older generation may enjoy — a space that matches the maturity of the intended target generation, including the baby boomers. While understanding your audience is important and there is a time and a place to use this design style, it’s crucial to dig deeper psychologically and understand the 55-plus mind. Everyone wants to be younger. …
By Ben Seager, Principal, KTGY American poet and author Maya Angelou said, “Mostly, what I have learned so far about aging, despite the creakiness of one’s bones and cragginess of one’s once-silken skin, is this: Do it. By all means, do it.” Although this is a great axiom for any generation, the baby boomers have revolutionized the seniors housing industry in their quest to not take aging lying down. They want to stay active — in mind, body and spirit — enjoy life, and share time with family and friends. …
By Christian Buesing, director of operations – technology solutions, Direct Supply Technology needs to serve a purpose. In my personal life I am slow to implement new technology into my routine until I know for sure it will serve me well. I am not the guy who has the latest tech toys just for the fun of it. In our industry, superior senior care is demanded. With the current staffing shortage, the technology incorporated into any community needs to improve staff efficiency and resident well-being. There are high expectations for …
By Russell Phillips, Regions Bank As a real estate asset class serving the nation’s elderly population, the seniors housing sector was faced with serious challenges during the height of the COVID-19 pandemic. Residents and staff of senior living facilities faced increased risk of illness, various restrictions and an unfortunate loss of life was widely reported in the media. At the same time, many families chose to keep older parents or relatives living with them rather than residing in senior facilities. Combined, these factors led to an overall reduced demand for …