Market and Feasibility Studies
A Comprehensive Market and Feasibility Study is an early planning stage study that guides a senior living developer in making a decision to proceed or not with their senior living project. It assesses competition and demand for senior living services such as Memory Care, Assisted Living or Independent Living and appropriate pricing in a defined market.
A potential senior living service area for the market is defined and its demographics and competitors are analyzed. Senior Consulting, LLC not only relies on reported information to licensing authorities, but conducts telephone surveys with area discharge planners and elderly agencies. Thereafter, each potential competitor is personally mystery shopped, gaining further insight on marketing strengths or weaknesses of competitors and occupancy and allowing Senior Consulting to benchmark differences in the operations and physical plant of competitors.
The final Senior Living Market and Feasibility Study defines the service area and provides developers or senior living operators a summary of findings and conclusions to assess the opportunity for senior living in the market area. Not only is this Comprehensive Senior Living Market and Feasibility Study suitable for planning, but it is also a tool in obtaining start-up or permanent senior living financing.
The final service area is defined after site visits, interviews and a review of psychological, natural and economic demographics. Senior Living employs multiple methods of establishing primary and sometimes secondary service areas of a senior living development. One method is extrapolating a radius from a defined site, although we rarely suggest this option. Preferably, we assess competitors within a city, township or zip code where the subject property is located and add contiguous cities, townships or zip codes in the primary service area where we expect the majority of senior living or assisted living residents to reside. We sometimes extend the distance from a proposed site for a secondary service area where we expect the minority of residents for a new or expanded senior living community.
Geographic boundaries and the perception of potential residents is another important consideration. As an example, a major river that may have major bridges and freeway access still influences potential residents, so a competitor eight miles away across the river may be in the secondary service area and another ten miles away may be in the primary service area.
Our Senior Living Market Analysis also provides a senior living developer or a senior living manager with detailed recommendations regarding important issues like suggested overall project size, services and care levels, as well as unit mix and sizing, pricing levels and suggested amenities.
A detailed demographic segmentation analysis, including age and income, will be completed.Our assisted living market study discusses expected timeframes to obtain stable occupancy should the developer proceed with the senior living project and specific recommendations on niche opportunities available. The study also provides an outline to address unique challenges in your senior living market area. The Senior Living Market Study supports your business plan’s forecasts, another area where we can assist in development to attract senior living investors after the report is complete.
When considering expanding an existing facility’s mission by offering added assisted living beds or a memory care unit as two examples to area seniors, we have existing assisted living operators as well. Such an analysis again would define the assisted living service area, look at area demographics, assess competition, and other information needed for a quality senior living report to define expansion plans and attract capital partners.
Ask us for a free consult on your senior living market analysis.