The senior living industry is becoming an increasingly competitive market, as new developers enter the market and existing developers continually improve their communities. Construction is rapidly on the rise – currently there are 12,000 independent living units under construction, and 20,000 assisted living units are being built. In order to stay relevant, this means creating a plan to stand out and maintain strong community ties for existing industry players.
Ed Kenny, president and CEO of LCS, is in the camp that believes it is necessary to embrace the competition. “For all of us that own or operate senior residences throughout the United States – it’s game time for competition. We can’t have our cake and eat it too, and say we want to grow the senior services and expand our reach but then be spooked by competition. We have to accept the fact that it’s going to be a more competitive market moving forward.” Right now, most senior living providers are responding to the increase in demand and are building and improving independent living and memory care residences. Providers have devised unique strategies to stay ahead of the competition.
For some, Differentiation is Key
Some senior living providers have invested in finding an innovative way to expand product offerings, and are finding flexibility to be essential. These providers are turning to services that are beyond the norm to expand their market share. Some are embracing their biggest competitor – home health care, while others are working on developing ways to improve in house care services. Ed Kenny recognizes that his company and others will need to “see more flexibility in the service package…to recognize that we…have an obligation to our clientele, which is to help navigate the health care maze, whether with information, resources, or services. And that’s going to be a real strong differential in our product.”
For Others, Emphasizing the Resident and Staff Experience is Essential
It goes without saying that the senior living industry is a service business – people are the clientele. In order to edge out the competition, the experience of residents and staff members must be prioritized. If the Residents have a positive experience at the community, and the staff is superior and obviously valued, your company will enjoy a prime position in the senior housing market.
Revamp Existing Offerings
Senior living providers are beginning to make improvements to revamp and reposition their communities for the future influx of American seniors. It is not always necessary to invest large sums of money for improvements; often, ensuring the community is well maintained and equipped with a great staff can make all the difference.
Contact Cambridge Realty Capital
Cambridge Realty Capital specializes in providing financing and capital for large-scale improvements and construction projects for senior living facilities. We also have expertise in mergers, acquisitions, and joint ventures. For any questions regarding finance and capital for your senior living initiative, contact Cambridge Realty Capital. Our experts are committed to working with you in every step of the financing process.