The numbers have to work when determining whether or not to pursue a property or opportunity. As we point out constantly, there are also other factors outside of the numbers which can strengthen or weaken the case. Examples are change in the neighborhood, nearby new construction, conversions, and municipal incentives.
Another aspect to forming a project is examining what the “customer” wants, whether a potential buyer or tenant. The below linked article is an example, focusing on how newer housing for seniors should appeal to what Baby Boomers want. Boomers are, for the most part, used to the technology and modern conveniences which much of the previous generation was not. They also want to feel a sense of community, have plenty of activities, and not be reminded they are in a facility dedicated to seniors. It’s different from what they picked out for their aging parents.
There are times that certain amenities attract a buyer or tenant even more than the numbers and the logistics. Being able to take computer classes or play Pickleball at the clubhouse might be more important than being minutes away from the medical center. Some real estate developers and investors merely speculate as to what they think potential buyers or tenants may want. Others know to do their homework, also known as doing research.
It could be talking with tenants of nearby or competing facilities to find out likes and dislikes. Touring similar properties can provide answers. The more you can learn before you plan, the better the options you will be able to offer.
If I was looking at senior housing, I would visit or tour every other senior facility within 10 miles and note things I like and don’t like. Some of that judgement would come from watching who is there and how they are reacting. It is easier to tell whether or not seniors are enjoying or benefiting from their current environment. Note whether the food service area is treated like military mess hall or a dining experience with attentive service. Someone feeling like they are dining in a restaurant every evening is likely to choose that to reside in over another place which slaps dish after dish in front of you and picks them up every five minutes.
Another example is looking at how much student housing has changed in recent years. Students have come from messy and cramped dorm rooms with plastic furniture to better living conditions and more pampering than their parents provide. Senior housing could be taking a similar path.
The message is to research for what would appeal the most to your target audience, no matter the age and income. Our team is ready to assist in the process, and do so without needing employee costs or training time. We’ll make you “first in” on your next great opportunity or investment!
(Here is the article: https://rebusinessonline.com/interface-seniors-housing-execs-say-boomers-want-different/ )
