Senior Housing Sector Experiences Record-Setting Year
Senior housing occupancy is at its highest level since 2007, and 2015 was a record year for sales and institutional transactions, according to the recently released CBRE Senior Housing Investor Survey & Market Outlook.
“Our survey was sent to the most influential senior housing investors, developers and brokers throughout the U.S.,” said Zach Bowyer, MAI, National Practice Leader for CBRE’s seniors housing specialty practice. “In developing the survey, our objective was to identify key trends in the senior housing real estate industry and to share this information with our clients to help them better understand the state of the rapidly evolving senior housing and care market.”
The senior housing sector closed another record-setting year in 2015 with 514 institutional transactions closed and $18.7 billion in institutional sales, despite a slowdown in the fourth quarter, according to data from the National Investment Center for the Seniors Housing & Care Industry (NIC). The increase in volume over 2014 was 4.5 percent, revealing a significant decrease in growth rate, a trend that is consistent with the overall U.S. commercial real estate market.
Among the key findings from the survey, 48 percent of respondents expect no change in cap rates over the next 12-month period. While 31 percent expect an increase in cap rates, 21 percent of the respondents are still expecting to see compression.
The change in capitalization rates in 2015 was minimal compared to prior survey results, signaling that the market cycle is close to reaching a peak. Investor interest (old and new) remains high with 58 percent of respondents looking to increase their exposure to the space, while participation by public REITs in 2016 is a significant, yet unknown variable.
Senior housing cap rates have averaged at a spread of roughly 518 basis points (bps) to the 10-year Treasury with the most recent indicated spread falling above the historical average at 554 bps. This indicates room for further compression as interest rates creep upward, according to CBRE. As a point of reference, multifamily cap rates currently represent a 215 bps spread.Total senior housing returns were reported at 16.3 percent, 14.8 percent and 13.3 percent over a one-, five- and 10-year period. These returns have outperformed multifamily returns and the NCREIF Property Index over the same periods.
The number of units under construction has increased from 22,975 at the end of 2012 to 48,903 as of 4Q 2015. With an average development period of 12 to 15 months, a significant portion of this supply will come on line in 2016. This is a major concern in the industry.
“The senior housing landscape is evolving with the increased presence of sophisticated capital, market transparency, operational efficiencies and technological advances. This can be compared to the institutionalization that the multifamily sector experienced from the mid-1990s to early 2000s,” said Mr. Bowyer. “Increased investment activity, coupled with increased construction activity, has resulted in an increased demand for experienced operators. Growing pains are expected as the market expands, and property management continues to be a key factor in protecting the value of a seniors housing asset.” For a copy of the CBRE Senior Housing Investor Survey & Market Outlook click here.
2015 Strong Across the Senior Housing Spectrum
Every sector of the seniors housing market has positive momentum entering 2015 as the national economic picture brightens and demographic trends favor strengthening demand. Much of the ambiguity that faced the sector over the past few years has dissipated, though some of those factors may resurface in the years ahead.
Currently, however, strong job growth across nearly every state is refilling local coffers and relieving pressure on state-funded reimbursements. Additionally, more questions surrounding the implementation of the Affordable Care Act and how it will impact operators have been answered, enabling owners to navigate the new system.
The housing market is another bright spot for the industry. After the housing downturn, many seniors elected to stay in their homes rather than liquidate the largest chunk of their nest egg at rock bottom prices. Subsequently, robust appreciation supported a longer hold for those attempting to ride the market up again. Now that some normalcy has returned to the housing market for the first time in many years, a wave of seniors are financially and psychologically in a position to transition into some form of seniors housing.
Similar to other real estate sectors, investors intend on expanding their portfolios this year while interest rates remain relatively low and the clouds that hung over the fate of reimbursements have begun to clear. In the independent living arena, intense demand for apartments is spilling into the sector as buyers outnumber sellers by a wide margin. The added spread between cap rates and interest rates for these properties has been a strong selling point for investors.
Assisted living facilities, which typically do not receive the same level of interest from traditional multifamily buyers, are receiving a wave of new capital from REITs expanding in the sector. Approximately $30 billion in non-traded REIT funds could enter the seniors housing market this year, with a significant share targeted at private-pay assisted living facilities. On the other hand, the skilled nursing sector is poised for a renaissance of smaller operators in 2015. Uncertainty took a toll on deal flow at the lower end of the quality spectrum the past few years, and the current bright outlook could help investors recoup lost time. - source:Marcus & Millichap
13 Habits of Highly Emotionally Intelligent People
People with high emotional intelligence tend to do better at work. So What habits do they have that set them apart?
In a study conducted at UCLA, subjects rated over 500 adjectives based on their perceived significance to likeability. The top-rated adjectives had nothing to do with being gregarious, intelligent, or attractive (innate characteristics). Instead, the top adjectives were sincerity, transparency, and capacity for understanding (another person).
These adjectives, and others like them, describe people who are skilled in the social side of emotional intelligence. TalentSmart research data from more than a million people shows that people who possess these skills aren't just highly likeable; they outperform those who don't by a large margin.
We did some digging to uncover the key behaviors that emotionally intelligent people engage in that make them so likeable. Here are 13 of the best:
1. They Ask Questions
the biggest mistake people make when it comes to listening is they're so focused on what they're going to say next or how what the other person is saying is going to affect them that they fail to hear what's being said. The words come through loud and clear, but the meaning is lost.
A simple way to avoid this is to ask a lot of questions. People like to know you're listening, and something as simple as a clarification question shows that not only are you listening, you also care about what they're saying. You'll be surprised how much respect and appreciation you gain just by asking questions.
2. They Put Away Their Phones
Nothing will turn someone off to you like a mid-conversation text message or even a quick glance at your phone. When you commit to a conversation, focus all of your energy on the conversation. You will find that conversations are more enjoyable and effective when you immerse yourself in them.
3. They Are Genuine
Being genuine and honest is essential to being likeable. No one likes a fake. People gravitate toward those who are genuine because they know they can trust them. It is difficult to like someone when you don't know who they really are and how they really feel.
Likeable people know who they are. They are confident enough to be comfortable in their own skin. By concentrating on what drives you and makes you happy as an individual, you become a much more interesting person than if you attempt to win people over by making choices that you think will make them like you.
4. They Don't Pass Judgment
If you want to be likeable you must be open-minded. Being open-minded makes you approachable and interesting to others. No one wants to have a conversation with someone who has already formed an opinion and is not willing to listen.
Having an open mind is crucial in the workplace where approachability means access to new ideas and help. To eliminate preconceived notions and judgment, you need to see the world through other people's eyes. This doesn't require you believe what they believe or condone their behavior, it simply means you quit passing judgment long enough to truly understand what makes them tick. Only then can you let them be who they are.
5. They Don't Seek Attention
People are averse to those who are desperate for attention. You don't need to develop a big, extroverted personality to be likeable. Simply being friendly and considerate is all you need to win people over. When you speak in a friendly, confident, and concise manner, you will notice that people are much more attentive and persuadable than if you try to show them you're important. People catch on to your attitude quickly and are more attracted to the right attitude than what -- or how many people -- you know.
When you're being given attention, such as when you're being recognized for an accomplishment, shift the focus to all the people who worked hard to help you get there. This may sound cliché, but if it's genuine, the fact that you pay attention to others and appreciate their help will show that you're appreciative and humble -- two adjectives that are closely tied to likeability.
6. They Are Consistent
Few things make you more unlikeable than when you are all over the place. When people approach you, they like to know whom they're dealing with and what sort of response they can expect. To be consistent you must be reliable, and you must ensure that even when your mood goes up and down it doesn't affect how you treat other people.
7. They Use Positive Body Language
Becoming cognizant of your gestures, expressions, and tone of voice (and making certain they're positive) will draw people to you like ants to a picnic. Using an enthusiastic tone, uncrossing your arms, maintaining eye contact, and leaning towards the person whose speaking are all forms of positive body language that high-EQ people use to draw others in. Positive body language can make all the difference in a conversation.
It's true that how you say something can be more important than what you say.
8. They Leave a Strong First Impression
Research shows most people decide whether or not they like you within the first seven seconds of meeting you. They then spend the rest of the conversation internally justifying their initial reaction. This may sound terrifying, but by knowing this you can take advantage of it to make huge gains in your likeability. First impressions are tied intimately to positive body language. Strong posture, a firm handshake, smiling, and opening your shoulders to the person you are talking to will help ensure that your first impression is a good one.
9. They Greet People by Name
Your name is an essential part of your identity, and it feels terrific when people use it. Likeable people make certain they use others' names every time they see them. You shouldn't use someone's name only when you greet him. Research shows that people feel validated when the person they're speaking with refers to them by name during a conversation.
If you're great with faces but have trouble with names, have some fun with it and make remembering people's names a brain exercise. When you meet someone, don't be afraid to ask her name a second time if you forget it right after you hear it. You'll need to keep her name handy if you're going to remember it the next time you see her.
10. They Smile
People naturally (and unconsciously) mirror the body language of the person they're talking to. If you want people to like you, smile at them during a conversation and they will unconsciously return the favor and feel good as a result.
11. They Know When To Open Up
Be careful to avoid sharing personal problems and confessions too quickly, as this will get you labeled a complainer. Likeable people let the other person guide when it's the right time for them to open up.
12. They Know Who to Touch (and They Touch Them)
When you touch someone during a conversation, you release oxytocin in their brain, a neurotransmitter that makes their brain associate you with trust and a slew of other positive feelings. A simple touch on the shoulder, a hug, or a friendly handshake is all it takes to release oxytocin. Of course, you have to touch the right person in the right way to release oxytocin, as unwanted or inappropriate touching has the opposite effect. Just remember, relationships are built not just from words, but also from general feelings about each other. Touching someone appropriately is a great way to show you care.
13. They Balance Passion and Fun
People gravitate toward those who are passionate. That said, it's easy for passionate people to come across as too serious or uninterested because they tend to get absorbed in their work. Likeable people balance their passion with the ability to have fun. At work they are serious, yet friendly. They still get things done because they are socially effective in short amounts of time and they capitalize on valuable social moments. They minimize small talk and gossip and instead focus on having meaningful interactions with their coworkers. They remember what you said to them yesterday or last week, which shows that you're just as important to them as their work.
Likeable people are invaluable and unique. They network with ease, promote harmony in the workplace, bring out the best in everyone around them, and generally seem to have the most fun. Add these skills to your repertoire and watch your likeability soar! Source: Dr. Travis Bradberry, award-winning co-author of the #1 bestselling book, Emotional Intelligence 2.0