Owners, Operators Expect Strong Demand, Steady Cap Rates Despite Headwinds, Says CBRE Survey

by Jeff Shaw

Owners and operators expect demand for seniors housing to remain healthy in 2018 thanks to steady economic growth and an improving housing market, according to the winter 2018 U.S. Seniors Housing & Care Investor Survey Update conducted by CBRE.

The industry faces some headwinds, however. New supply will put short-term pressure on occupancy and rent growth in select markets, according tp the survey.

For investors, the top concern is property-level operating costs. The second highest concern is overbuilding, throwing supply and demand fundamentals off kilter.

Most survey respondents (63 percent) expect capitalization rates to remain firm over the next 12 months.

Investor interest is gravitating to the more lifestyle focused segments of seniors housing. Independent living was identified as the best investment opportunity (36 percent of responses), followed by assisted living.

To read the full report, click here

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