LARRY MIKELL

Larry Mikell stands as a beacon within the realm of Senior Housing, offering profound insights and a strategic vision for navigating the industry's trajectory in 2024. Collaborating with Jo T. Letwaitis, the esteemed Chief Operating Officer, Mikell provides invaluable perspectives that shed light on the challenges and transformative trends shaping the landscape of Senior Housing. Senior Housing represents a specialized segment within commercial real estate, catering to the housing and care needs of elderly individuals who may encounter challenges in maintaining independent living. From Independent Living to Hospice, inclusive of Assisted Living, Memory Care, and Skilled Nursing, this sector plays a pivotal role in offering tailored support to seniors with diverse needs. The seismic impact of the pandemic reverberated through the Senior Housing industry, triggering a significant decline in occupancy from 2020 through late 2022. Fear of virus transmission within care facilities led operators to exhibit hesitancy in admitting new residents, compounded by the unfortunate natural attrition. Financial constraints prompted families to relocate elderly members home, resulting in the closure of approximately 25% of small assisted living homes in the Midwest. However, the turning point arrived in 2023. Widespread vaccine adoption, reduced Covid transmission rates, and an improving economic landscape facilitated the return of residents to care facilities. In response, operators bolstered intakes, signaling a more promising outlook for the industry. Across the Midwest, numerous facilities reported heightened occupancy levels, accompanied by waiting lists indicating a resurgence in demand. One notable consequence of the pandemic was the shortage of smaller care homes, sparking the initiation of construction for more 10 to 40-bed Assisted Living Homes (ALHs) and the refurbishment of Single-Family Residential (SFR) properties in the foreseeable future. Despite potential hurdles posed by higher interest rates impacting new constructions and renovations, the resilient demand for Senior Housing endures. This is predominantly fueled by the aging Baby Boomer population seeking increased care or downsizing while endeavoring to maintain an active lifestyle. In deliberations on the industry's future, Jo T. Letwaitis illuminates the commitment required in financing and constructing larger facilities.