Frequently asked questions about senior housing feasibility studies:
Nielson Financial provides solutions for senior housing feasibility studies. If you or your company are interested in conducting a feasibility study, please visit our Feasibility Studies for Senior Living page.
What is a feasibility study?
A feasibility study is a detailed look into a proposed project that examines the geographical and economic trends within a given area and determines if the project can be successful.
Who needs a feasibility study conducted for senior living housing projects?
Those looking to develop new or expand upon existing senior living facilities such as assisted living facilities (AL), independent living facilities (IL), or skilled nursing facilities (SN).
Why complete a feasibility study for senior housing projects?
A market feasibility study is designed to assist internal decision making for a property as well as a presentation for other potential operators and financial partners. For many investors, the combined components of real estate and hospitality give senior housing and care properties a unique resiliency, offering the benefits of real estate investment along with the strength of the healthcare field.
How long does it take to complete a senior living feasibility study?
A detailed feasibility study takes about 4 to 6 weeks depending on the level of detail required for the analysis. The location of the proposed facility is scouted to learn about the surrounding area and external research is used focusing on population growth, demographic breakdown, future projects in the area.
Why are senior living facilities attractive for investors?
The combined components of real estate and hospitality give seniors housing and care properties a unique resiliency, offering the benefits of real estate investment along with the strength of the healthcare field. This resiliency was evident during the real estate downturn of 2008-2009 when seniors housing and care properties outperformed other commercial real estate property types in terms of investment returns and rent growth.
Why is Florida an attractive market for potential senior living development investors?
As the oldest baby boomers reach retirement age and older generations live longer, more counties across America are graying. A new Pew Research Center analysis of the Census Bureau’s 2014 population estimates finds that 97% of counties saw an increase in their 65-and-older population since 2010. Florida is one of the nation’s grayest states. Overall, 19.1% of the Sunshine State’s population is 65 and older, the highest percentage in the nation. In addition, the sizes of the 80+ and 85+ populations are expected to increase at a rate of approximately 1.5%-2% annually during the remainder of the decade, while the early part of the next decade will see population growth accelerate, averaging between 2%-3% from 2020 through 2024.
Is your company looking to conduct a feasibility study for your senior living development? Check out our feasibility study service page, then contact us today for a free consultation concerning our detailed feasibility study.
Sources:
https://www.investopedia.com/terms/f/feasibility-study.asp
http://www.pewresearch.org/fact-tank/2015/07/09/where-do-the-oldest-americans-live/
