Investors are looking to senior housing to protect against real estate downturns according to a new report by CBRE, a commercial real estate services and investment firm. Senior housing, in addition to healthcare and student housing, have become common alternatives for investors.
Higher initial yields are the main reasons for investors to consider alternatives but protecting against downturns is also. No doubt, demographics are helping explain the interest in senior housing assets.
In senior living, value-add or opportunistic properties are the most attractive with renovations being the primary strategy to enhance asset value seconded by redevelopment and filling vacant space.