Publications

- November 1, 2021: Vol. 13, Number 10

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A living investment: Why senior housing is the answer to a changing investor appetite

by Alexander Froese

The ongoing uncertainty of traditional sectors, such as offices and retail, along with the pursuit of higher yields and portfolio diversification, drive investors’ appetites for alternative real estate assets, such as senior living. The exposure of conventional assets to the economic cycle, exacerbated by COVID-19, has led investors to allocate more capital towards alternatives.

Senior living, thanks to its strong fundamentals and its countercyclical nature, is the perfect alternative to highly priced traditional assets. An option to convert into a residential asset furthermore provides investors with downside protection and third-party usability. All the above makes senior living an increasingly attractive investment. As prime assets in traditional real estate sectors become ever so scarce, while experiencing compressing yields, long-term income-generating properties such as senior living are increasingly appealing to investors. This is especially so when potential income

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