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Thought Leaders: Seniors Housing sector is positioned for continued favorable performance in 2020

In a sector already poised for disruption, new innovations such as technology, infrastructure and design are vital to the well-being and safety of residents.

The COVID-19 pandemic continues to impact the real estate industry in new ways. Owners and operators in the Seniors Housing sector are facing unprecedented challenges head-on, and have adjusted to apply learned best practices that ensure the health and well-being of their residents.

JLL’s latest Seniors Housing & Care Investor Survey & Trends Outlook* examines the impact of COVID-19 on market valuations and expectations going forward according to some of the most influential leaders in the Seniors Housing sector.

Key trends from our report:

The first quarter of 2020 saw the highest transaction volume since Q1 2016 while capitalization rates dropped to an all-time low.

Declining occupancy is having the greatest impact on revenue. With some market segments being more impacted than others, it has been challenging to state a baseline.

Increased operating expenses for both short-term and long-term needs has had the greatest impact on valuations.

Operators are expecting stabilized operating expenses to normalize at 20 to 50 percent of the current COVID-19 premiums.

Medium and long-term investment sentiment is still strong as experts prepare for the “silver tsunami,” with the leading-edge baby boomer now within a ten-year investment cycle of occupancy.

We are seeing an acceleration of existing trends and innovations and the emergence of new innovations, such as technology, infrastructure and design.

Buildings across the United States are applying new safety guidelines and protocols to ensure the long-term safety of staff and residents.

Download the report

*Our commitment to business continuity during this unprecedented time, in addition to our willingness to remind the market of the long-term opportunity for the Seniors Housing & Care sector drove our decision to release this report. We are here to help you navigate (re)entry to prepare your workplace, your asset(s) and your people for the next normal in a COVID-19 world. View more JLL COVID-19 resources for real estate.

Contact us

Audrey Symes
Director of Research
+1 212 812 6533

Zach Bowyer, MAI
Managing Director
Executive Leadership
+1 617 316 6595

Bryan Lockard, MRICS
Managing Director
Seniors Housing Practice Leader
+1 813 387 1301

Jon Cruse, CRE, FRICS
Executive Vice President
Market & Feasibility Studies Practice Leader
+1 214 924 7767

Paul Fomenky
Head of Data Science
+1 617 531 4271

Brian Chandler, MAI, CRE, FRICS
Managing Director
Seniors Housing Practice Leader
+1 214 396 5423

Deborah Street
Senior Vice President
Strategic Advisory Services
+1 760 715 2076

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