Reis Launches Enhanced Coverage of Seniors Housing Sector

By Keith Loria, Contributing Editor

Reis Inc. will launch the nation’s first independent coverage of the seniors housing sector, offering full analytical reports covering independent living, assisted living, memory care and skilled nursing in 184 submarkets in 57 major U.S. metros.

“We typically initiate coverage of a given sector because we know it is going to be of increasing importance to our clients and prospects.” Victor Calanog, Reis’ head of research & economics, told Commercial Property Executive. “Observed trends indicate, both from demographic and capital flow points of view, that investments in seniors housing facilities as a separate asset class are taking a growing chunk of debt and equity allocations. Our own observations and conclusions have been corroborated by clients and prospects, who asked that we begin covering the sector.”

Prior to this, Reis’ coverage was limited to sales transactions and new construction surveillance, but it has always paid close attention to what was happening in the seniors sector.

“We had our ear to the ground, so to speak,” Calanog said. “Now that the train is definitely coming, we’ve given the sector full coverage for sales transactions, supply growth or new construction patterns, and detailed analyses for how rents, occupancies and other indicators of property performance are trending at the building, submarket and metro levels.”

According to Calanog, seniors housing already has a total estimated value of more than $300 billion, and it is demographically inevitable that the sector will become increasingly important as the nation’s Baby Boomers age into the seniors population.

“Demographics are the biggest driver: People are living longer, and nuclear households that find it somewhat advantageous to have an external service provided to care for aging parents/grandparents means that demand for seniors housing will increase over time,” he said.

This is the fourth new sector Reis has added in as many years, following the introduction of coverage for the warehouse/distribution, flex/R&D and self storage sectors.

“When we observe that a sector is going to become increasingly important to our clients, as with self storage recently and now with seniors housing, we serve it up as an option,” Calanog said. “What is important to remember, though, is that Reis applies to each new sector the same rigorous methodology that helped us standardize commercial real estate information in the traditional sectors.”