Senior housing investors are shifting to prefer communities that offer both independent living and assisted living (with or without memory care) on one campus, according to newly released results of a survey by professional services firm JLL.
Eighty-six percent of respondents to JLL’s Year-End 2017 Seniors Housing Investor Survey, released Thursday, ranked such communities — without skilled nursing care — as “very desirable” or “extremely desirable.” More than 250 investors, operators, developers and lenders in seniors housing and healthcare were invited to participate.
“New investors are seeking to gain footholds in the sector now, and developers are beginning to think ahead about how new product will need to evolve to appeal to the boomers,” said Charles Bissell, managing director of JLL valuation and advisory services.
Almost 70% of survey respondents said the trend of communities offering both independent living and assisted living “is definitely here to stay.”
“Having all of your care under one roof, typically in an infill location, is extremely appealing to millennials, who are now making choices about where to put their parents,” said Allison Holland, managing director of JLL Capital Markets. “Development of this kind of product will continue, and we expect this to become a much more common product type as the cycle progresses.”
Freestanding assisted living communities, with or without memory care, were the second most appealing type of community among respondents. Stand-alone skilled nursing facilities held the least appeal.