More Investors Eyeing Skilled Nursing and Senior Housing

A new report featuring third-quarter data indicates investors are once again turning their interest to skilled nursing facilities (SNFs) and the senior housing market. This is excellent news for providers following a slow and often bumpy ride since the start of the pandemic in 2020. While COVID-19 continues to introduce challenges and create uncertainty, the fact that SNFs are back in investors' good graces is a positive sign.

Over the last several months, we've discussed the various ways the industry has pivoted and adapted to meet the demands of today. While the road hasn't been an easy one, those who have embraced the industry's current state and evolved to stay on pace are reaping the benefits. For example, providers that welcomed tech-based solutions and leveraged technology are better positioned to meet the demands of today's changing seniors.

On the other hand, many investors took a step back and adopted more of a "wait and see" attitude during the height of the pandemic. Now, these investors have money in their pocket and are ready to re-enter the market.

SNF Occupancy Trending Upward 

Industry experts expect momentum to continue as 2021 sales in the first three quarters have surpassed all 2020 transactions. Furthermore, while occupancy rates have been slow to bounce back, this is expected to change.

This opens the door for investors, creating exciting new opportunities that could benefit all sides. With vaccination rates among senior housing residents and staff steadily increasing, recovery efforts underway, and developments catering to the present-day resident paving the way, it's an exciting time to be an investor. Numerous facilities viewed the pandemic as an opportunity to reevaluate their model, values, and the services they offer. Many have been empty for months now, undergoing renovations and letting go of outdated models.

As we look ahead to 2022, the investment sales opportunities for SNFs and the senior housing market will continue, and we will be sure to keep you apprised. If you are curious about our current investment opportunities or future deals, don't hesitate to contact the senior housing experts at Sherman & Roylance.