Senior Housing Will be a Schizophrenic Market
According to Jacob Gehl, senior managing director of Blueprint, the market fundamentals are excellent in the medium to long term but are challenged in the short-run.
SCOTTSDALE, AZ—The senior housing real estate market is uneven and less efficient compared to the primary food groups of real estate such as multifamily. So says Los Angeles-based Jacob Gehl, senior managing director of Blueprint.
GlobeSt.com caught up with the panelist at the upcoming RealShare Healthcare conference here in December, to talk about the senior housing industry specifically and why we can expect to see a “somewhat schizophrenic market.”
According to Gehl, the market fundamentals are excellent in the medium to long term, but are challenged in the short-run. “Higher borrowing costs, a difficult labor market, too much competition and increased construction costs are all headwinds.”
However, there is still a tremendous amount of capital chasing deals, he adds, noting that deals are still getting done at record prices.
“We’ve all read about the silver tsunami and that 10,000 people a day turn 65 in the US. On the transaction side, one of the interesting aspects of senior living is all of the new capital entering the market both foreign and domestic.”
In California, for example, he says that there has been substantial inflows from Asia, specifically Japan and China. “We expect this trend to continue as foreign capital views this economy and this product type to be a safe harbor.”
As for where investors are placing their healthcare bets, Gehl says in his space, “a lot of folks are betting on new construction and the private client middle market side has been betting on the nursing home business in a big way.”
For more information on senior housing and healthcare real estate, join us at REALSHARE HEALTHCARE in SCOTTSDALE, AZ, from Dec 5-6, 2018. This event features thought-provoking and engaging panels focusing on senior housing and long-term healthcare as the industry continues to evolve. This conference is powered by GlobeSt.com, the go-to-source for healthcare real estate news and analysis. To register for REALSHARE HEALTHCARE, please visit