ORLANDO-The economy appears to be improving in 2011, and some sectors of the commercial real estate industry are showing signs they may break out in the lead. Investment analyst George Livingston, chairman of NAI Realvest in Maitland, points to assisted living care facilities as a potential big winner.

“Investors are seeking properties that offer higher yields,” Livingston said. “That means locations besides gateway cities where property values are lower but growth prospects are no worse than more urban areas."

Livingston is shining a light on adult living facilities. He predicts independent and assisted living and memory care projects will see some of the sharpest growth trends in 2011.

“Adult living facilities are already seeing high demand,” Livingston says. “We are right on the cusp of the Baby Boomers’ retirement, and many of them are seeking secure facilities for their parents."

The average occupancy rate for seniors housing properties in the third quarter of 2010 was 87.7%, which was unchanged from the second quarter and suggests that occupancy has stabilized, according to NIC MAP, a data and analysis service of the National Investment Center for the Seniors Housing & Care Industry (NIC).

NIC MAP data also reveals divergent trends in occupancy rates between independent living and assisted living properties. The independent living occupancy rate was 87.1% in the third quarter, down 30 basis points from the previous quarter. In contrast, assisted living occupancy was 88.7% in this quarter, which was up 40 basis points from the second quarter.