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Premier Healthcare commercial real estate news, analysis, trends and information including hospital, health system space use, medical office buildings, skilled nursing, post acute care and rehabilitation facilities.
However, the industry must get through a cloudy remainder of the year first.
Performance in senior housing is strong for several reasons.
Peninsula vacancy rate hits 34%, largest ground-up delivery arrives vacant.
Less need for in-house payment processing reduces space requirements.
Rents in the sector grew 4.1% on steady demand and contraction in supply.
As a result, average annual rent growth was 4.2%.
Many developers are holding off on beginning lab and R&;D construction until projects are fully leased.
The market for senior housing and nursing homes is expected to bounce back in 2025 after sales volume reached their lowest level in Q1.
Industry challenges meet a quick expansion in the aging population.
Since last year, both demand for lab space and funding have diminished.