it becomes increasingly important they find housing
that addresses their changing needs. Real estate managers who offer amenities and services keyed to seniors’
needs are likely to attract and retain a growing, stable
and appreciative category of residents, without having to
officially break into the complex and challenging senior
housing market.
“There is a common awareness out there that the Baby
Boomer generation is reaching the senior age, and a lot
of them don’t want to deal with the maintenance and
upkeep of a home,” said David W. Crump, CPM®, vice
president, residential services division, Ray Stone Inc.,
AMO®, in Sacramento, Calif. “I see them as having a lot
more impact on our properties. If you embrace that, it’s
a great opportunity. And if you don’t embrace it, your
competitor will.”
As people age
BOOMING BUSINESS
According to the U.S. Census Bureau’s 2008 projections, the percentage of persons 65 years and over will
increase from 12.97 percent in 2010, to 17.88 percent in
2025, and to 20. 17 percent in 2050. Not only will there
be more seniors, but their lifestyles will also differ from
seniors in the past, said Barbara Kleger, president of 55+
Consulting, a consumer research and marketing company in Philadelphia.
“This group is young at heart, endlessly updating and
renewing themselves, and not afraid to learn and grow,”
Kleger said. “They like new beginnings, new friends and
adventures. Anything you can do to simplify their lives
and let them have more fun will definitely be appreciated.”
Additionally, living in dedicated senior housing—
including “ 55+” facilities and independent living facil-
ities—comes at a price. Monthly rent at independent
living facilities that offer security, meal plans, scheduled
activities and maintenance-free living is $2,638 on aver-
age, according to the “Seniors Housing Research Report”
from Marcus & Millichap, a commercial real estate
investment services firm in Encino, Calif.
The recent economic downturn seems to have already
affected such communities to some extent. For instance,
in the second quarter of 2008, according to “Market Area
Profiles,” a study by the National Investment Center for
the Seniors Housing & Care Industry. In addition, occu-
pancy rates are expected to have fallen further in 2009
to 88.4 percent, according to the Marcus & Millichap
Senior Housing report.
SATISFYING SENIORS WITH SERVICE
Providing a wealth of services won’t just attract seniors
to a property. More importantly, it will allow current
residents to stay in place longer as they age—meaning
less turnover and more stability for a property, said Mel
Gamzon, senior managing director of Senior Housing
Investment Advisors in Fort Lauderdale, Fla.
“The more services that are available to residents, the
longer their length of stay will be within the facility,” he
said.
Kleger of 55+ Consulting said seniors—Boomers
especially—like being catered to. They appreciate having
a concierge or a member of management who can help
them find a handyman service, computer repair service
or transportation to the airport. Because they travel
more, they appreciate the concept of a “lock and leave”
lifestyle where their packages are taken in, or they can
arrange for their plants to be watered while gone.
Younger seniors look for properties with
fitness centers and yoga classes. Older seniors might
appreciate having a clothing store come on site with merchandise, allowing them to shop from home, Gilbertson
said. Helping Boomers set up technology or address any
technology issues, like cable or Internet problems, is
another valuable service, Crump said.
