Active Senior Living

We consider active senior living to include apartments and condominiums marketed primarily to empty-nesters (age 55+) whether or not they are restricted to that age group. Our senior active senior living studies provide you with a clear understanding of how the market will respond to your senior apartment development.  Whether your project stands alone or is part of a Continuing Care Retirement Community (CCRC), we can measure the depth and breadth of support for your property.

Conclusions/Recommendation

Specifically, our studies will provide the following conclusions/recommendations:

• Optimum unit mix, number and size recommendations
• A unit and project amenities package that is responsive to your target group
• Projected absorption
• At initial lease-up
• Overall average rate
• Impacted by turnover if absorption is extended beyond standard lease terms
• When appropriate a discussion of the subject site’s site and floor plans from a market perspective, identifying areas where design may hinder market response
• Competitive Analysis. When appropriate, potentially competitive projects are compared with the proposed project and analyzed in detail, including a detailed look at floor plans, entry impact, storage space, unit and project amenities, and pricing.
• Marketing strategies for the proposed project, particularly for those projects sponsored or developed by a nonprofit group, may be discussed if appropriate.

Supply/Demand Analysis

Our conclusions and recommendations for senior active senior living developments are based on an analysis of the relationship between existing and projected supply and demand based on a 100% survey of existing senior housing in the Effective Market Area (EMA) and an analysis of the overall area demographics.

Supply Analysis

Supply is determined through:

• A 100% field survey of Effective Market Area modern apartments
• A 100% survey of area elderly housing/CCRC developments
• Data from the US Census Bureau

The supply of apartments is analyzed to identify rent and vacancy trends of units by unit type, number of bedrooms, year built, and ccomparability rating.  Particularly important are the identification of senior occupancy of existing apartment properties and analysis of independent living options offered by local retirement communities.

Demand Analysis

• A comparison of proposed rent to expected market-driven rent at opening based on a Comparable Rent Analysis. The Comparable Rent Analysis allows for determination of market-driven rent for projects of any amenity level by using a regression analysis to analyze project rent in conjunction with its Comparability Rating.
• An analysis of step-up support for the proposed project. Our research indicates that the largest single component of support for any apartment project is apartment tenants already residing within the EMA, and that most apartment shoppers will "step up" their rent payments for housing that they consider to be a value. Our analysis identifies this step-up support by dollar range and median.  In addition, step-up support totals are adjusted to reflect total senior renters within the market.
• An analysis of potential turnover vulnerability for the proposed project. Our research indicates that the largest single source of tenant "drain" from any development is the apartment communities in the EMA priced within step-up range of the subject community.
• An analysis of rent gaps. Rent gaps are the differences in rent between unit types, such as one-bedroom and two-bedroom units. Rent gaps can be a substantial factor in a project's initial rent-up. Our analysis identifies the area's median rent gap, rent gap at the proposed project's Comparability Index, and rent gap at the proposed project. Rent gap among product alternatives (such as mix, location, and floor plan) at the subject site is also evaluated.

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