Fall NIC Conference 2019 Recap
Once again, the National Investment Center held its annual conference in Chicago from Sept 11th to 13th. It was a bit earlier in the year, but I for one enjoyed the warmer weather. As always, this conference attracts a very large crowd. Over 3,000 operators, investors, lenders, as well as brokers were in attendance. It was an excellent time to meet new people and catch up with old friends, share new information, discuss hot topics, and rising concerns in the senior housing industry.
Development, Middle Market, PDPM, and Equity Were Hot Topics at NIC Conference
Several topics that kept coming up were, current development cycle, the forgotten middle market, new PDPM reimbursement, and the large amount of equity available in the space.
The consensus seems to be that development is slowing down; several factors are contributing to that, most notability high construction costs. Another factor is that as developers chase the high-end resident, certain areas are being overbuilt. Despite high construction costs and slow fill-up rates, JCH spoke with many investors still looking to build.
The “middle market” resident seems to be garnering more attention as the senior housing industry struggles with ways to cut operating cost without impacting care. Some operators are adding “Active Adult” communities to their portfolio to serve this population. This may be a part of the eventual solution especially considering their lower monthly rents.
The skilled nursing facilities new payment model PDPM, which went into effect on October 1, 2019 was also on attendees’ minds. Most operators don’t seem to be bothered about it and are still out looking for new facilities to add to their portfolios.
The crazy amount of equity available was also a hot topic. In some ways this is good news for the senior housing industry and in other cases not so much. With the pent-up need to place this equity, coupled with inexperience, inevitability new investors to the senior housing space purchase expensive or overvalued assets. Too often JCH sees people overpromise returns which can cause negative reactions even tarnishing the asset class or product type. The good news is, that equity is also available to the seasoned senior housing investors who continue purchasing using tried and true valuation methods.
Work with The JCH Group for Your Senior Housing Investments
The JCH Consulting Group works with hundreds of operators, investors and specialists to successfully navigate the senior housing industry. With well-researched and informed decisions, our team routinely builds strong and solid portfolios.
No matter the size or type of real estate asset, we are your top resource in making the most of your senior housing investments in the senior housing industry. By sticking to longstanding industry principles, our guidance in the sector has always weathered storms in the senior housing industry.
For expert guidance, work with the investment specialists at the JCH Group. Learn more about the senior housing industry and receive a free business valuation at your convenience.