Report: Pricing, sales activity declines could come in 2016

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Report: Pricing, sales activity declines could come in 2016
Report: Pricing, sales activity declines could come in 2016

Concerns related to overbuilding could lead to declines in pricing and sales activity in some senior housing markets in 2016, predicts Integra Realty Resources in its Viewpoint 2016 report.

“Despite these concerns, the asset class remains an attractive arena for investors due to favorable demographic trends,” write authors of the report from the New York-based independent commercial real estate market research, valuation and counseling firm.

Most leading-edge baby boomers aren't quite ready to move from their homes or rental properties into seniors housing, the report notes. Development of independent living properties has picked up, however, because they attract a younger resident base.

Development of new assisted living and memory care communities has continued, the authors state, because of the strong performance of such properties during the last real estate downturn. Also, the report notes, these types of properties tend to be less expensive to develop than some other larger-scale senior housing projects, due to the relative ease of procuring equity to obtain sites and financing for construction.

The Viewpoint 2016 report also covers trends related to the economy, housing, capital markets, interest rates and employment; multifamily, office, retail, industrial and hospitality properties; and the specialty areas of medical offices, self-storage and automobile dealerships.

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May 16

Bringing in the outdoors

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Garvey Manor and Our Lady of the Alleghenies Residence continuing care retirement community recently hosted an outdoor show, "Marching into the Woods."

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