New NIC Research Director
A Discussion with Charles W. Harry, Jr.
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In the latest in a series of dialogues with key players in the seniors housing
and care industry, Michael Hargrave, vice president - NIC MAP®, recently interviewed Charles W. Harry, Jr.,
research director, NIC.
You joined NIC as the Research Director in March 2010 after 25 years in commercial real estate, the last nine of
which as managing director of analytics and investment strategies at Cushman & Wakefield’s Capital Markets Group. From your
time here, can you give us an idea of your impressions of the industry and how it compares and/or fits within the realm
of commercial real estate?
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Chuck: I can speak in terms of what I consider to be some of the distinguishing characteristics of
the seniors housing and care properties sector. First and foremost, I’m most impressed—especially in light of our youth-obsessed
culture—with the passion that the individuals within our industry bring to making a difference for seniors. That passion
is infectious, and it is among the most significant factors that drew me to this industry. Similarly, the commitment that
the sector’s companies possess towards enriching the lives of the residents also is incredibly encouraging. Furthermore,
during this most challenging economic downturn, the sector has truly distinguished itself by significantly outperforming
all core commercial real estate property types in terms of both their operations as well as investment returns. Given that
recent performance, coupled with its solid underlying demand attributes, our sector is on the verge of burgeoning interest
from prospective new capital with a genuine interest in gaining a deeper understanding of the dynamics behind our sector.
With much of that prospective capital being that of core commercial real estate market participants, however, the sizable
service component generally associated with our sector’s properties often gives many of those prospective industry participants
pause. That said, I welcome the challenge of helping to provide clarity and perspective to those prospects who are seeking
guidance in their due diligence of our sector.
Can you provide us a glimpse or a hint as to some of the items on your research agenda for the next six months?
Chuck: Given the ever-increasing interest in our sector, we’re working to stay ahead of the curve,
so to speak, by anticipating the research needs of our industry’s participants and prospective participants. Therefore,
our top research priority remains the product enhancements associated with NIC MAP. That includes not only a forthcoming
tool for portfolio benchmarking but also thereafter reports providing local trends analyses. In addition, NIC MAP reports
soon will incorporate detailed sales transactions metrics, and we look forward to regularly reporting market effective rents,
which incorporate any leasing promotional discounts. Later this year, in our ongoing effort to disseminate insightful and
timely industry research, we’ll publish the inaugural edition of the NIC Investment Guide 2010 that will serve as a primer
on our property sector and has been proclaimed by a number of the draft document’s reviewers as an unprecedented comprehensive
overview of our industry. Along those same lines, we’re in the process of updating NIC’s FAQs along with their associated
answers, and we’re pulling together an Investor Briefing presentation for industry orientation meetings next year within
the nation’s largest financial markets. We’re also making a concerted effort on outreach to commercial real estate researchers
within both the nation’s prominent university real estate programs as well as the premier industry organizations. Resulting
from that outreach is our collaboration with the National Council of Real Estate Investment Fiduciaries (NCREIF) on an initiative
to establish a quarterly investment performance index for the seniors housing and care property sector. Also, keep an eye
out for the published results of research funded by grants from NIC. It goes without saying that there remains a wealth of insights into our
sector to be gained by future research and analysis
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Is Construction on the Upswing?
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Overall construction activity in 2Q10 was 1.9% of existing inventory, which is unchanged from the previous quarter. An uptick
in construction starts essentially offset projects exiting the construction pipeline, causing overall construction activity
to remain essentially unchanged. There are 9,372 units under construction in seniors housing properties as of 2Q10 in the
31 largest metro areas, with 1,659 of these units within construction projects started during 2Q10.
The pace of annualized construction starts increased for the second consecutive quarter and is currently at its highest
level since 1Q09. In the past year, construction started on 5,487 units (24.3% of the units started were in Entrance Fee
CCRCs—EF CCRCs), which is up nearly 26% from last quarter’s trailing twelve months of starts at 4,369 units (24.1% of these
units were EF CCRCs). The markets with the most seniors housing units currently under construction are Chicago (19.8% of
units under construction are in EF CCRCs), New York (41.3% EF CCRCs) and Dallas (43.1% EF CCRCs).
To find out more about seniors housing construction, please visit
www.nicmap.org
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NIC MAP Releases 2Q10 Data Construction Starts Appear to Be Leveling Off
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NIC MAP, the leading provider of timely and comprehensive performance data on the seniors housing and
care industry, has released all reports and data for the second quarter of 2010. Data has been collected
and analyzed on over 12,300 seniors housing & nursing care properties located throughout the 100
largest metro areas. Subscribers may access the reports and the data they subscribe to
by logging into
NIC MAP.
Others may purchase any of our reports online through the
NIC Store. They include:
NIC MAP Metro Market Reports
- Our in-depth Metro Market Reports are available for the 100 largest metro markets. Quarterly benchmarks
are reported for occupancy, inventory, construction and rent growth.
NIC MAP Inventory & Construction Reports
- Produced for each of the 31 largest metro markets, you'll see detailed supply directories that list
which properties are located in a particular market.
NIC MAP Construction Monitor
- Get a written analytical summary, providing detailed reports on construction activity for each property
type.
NIC MAP Monitor
- Use this analytical report for comprehensive and detailed analysis of seniors housing data and trends
at the national level for each property type.
With NIC MAP data, you can identify trends in a particular market and quickly analyze occupancy, rental
rates, existing inventories, new construction and much more.
Schedule a demo
to see how the industry's leading provider of seniors housing and care performance data can help you
achieve your business goals.
Purchase 2Q10 NIC MAP Reports
today or contact
Amber Jacobs
at (410) 267-0504 for more information.
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Annual Conference - Nearly Sold Out: Only 100 Spots Remain
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20th Anniversary NIC Conference
Seniors Housing & Care Performs: Delivering Value by Focusing on the Fundamentals
September 22-24, 2010
Sheraton Chicago Hotel & Towers
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Registration
Less than 100 spots remain. Don’t miss your chance to attend –
register today. The 20th Anniversary NIC Conference will provide you with
the building blocks you need to capitalize on today's opportunities despite the tumultuous credit market.
- Attend educational sessions that will arm you with practical tips to put to use in your business
- Network with 1600 industry peers, including national financiers and top performing operators
- Discover how the top industry performers are building their business in an unpredictable economy
- Join the 72%+ of attendees who do business either at the conference - or as a direct result of contacts
made there
To view detailed session descriptions, speaker information, networking opportunities, and a full conference
schedule, click below to download the conference program.
20th Anniversary NIC Conference Program
Hotel Reservations
The Sheraton Chicago Hotel & Towers room block is now full. NIC has reserved an overflow room block
across the street at the Embassy Suites Chicago Downtown—Lakefront, located at 511 N. Columbus Drive,
Chicago, IL 60611.
Attendee Resources
If you are attending the Annual Conference, be sure to visit the newly-released
Attendee Resources
section of our website, where you can view a real-time list of attendees, set up meetings via email,
download session presentations and hotel maps, and more. for the industry's premier dealmaking event.
Sponsorships are now available, please contact
Elisa Freeman
to inquire.
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The State of Seniors Housing 2010
Now Available in the NIC Store
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The State of Seniors Housing 2010
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This year’s report includes data from nearly 1,500 seniors housing communities comprising almost 200,000 units. The 83-page
report contains pertinent income, expense and other performance measures including resident turnover and length of stay,
annual financial results per occupied unit, staffing ratios and labor costs as well as other key cost items, and more.
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The State of Seniors Housing 2010 is a collaborative research project between the American Seniors Housing
Association, National Investment Center for the Seniors Housing and Care Industry, American Association
of Homes and Services for the Aging, Assisted living Federation of America, and National Center for
Assisted Living.
Cost: $225.00 USD
©2010 American Seniors Housing Association, Washington, D.C.
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Seniors Housing & Care Industry Calendar
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| September 2010: |
| 21-22 | NIC Executive Committee Meeting, Board of Directors Meeting, Operator Advisory Board Meeting, and Committee/Task Force Meetings, Sheraton, Chicago, IL |
| 22-24 | 20th ANNUAL NIC CONFERENCE, Sheraton, Chicago, IL |
| 22 | ASHA Fall Meeting, Sheraton, Chicago, IL |
| October 2010: |
| 4-6 | PREA 20th Annual Plan Sponsor Real Estate Conference, The Westin St. Francis, San Francisco, CA |
| 10-13 | AHCA/NCAL Convention & Expo, Long Beach, CA |
| 12-15 | ULI Fall Meeting and Urban Land Expo, Washington, DC |
| 31- Nov 3 | AAHSA Annual Meeting, Los Angeles, CA |
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2010 NIC Premier Partners
We Greatfully Acknowledge our 2010 Premier Partners
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If you are interested in
advertising in the
NIC Insider Newsletter,
please contact
Gary Infante at
webmaster@nic.org.
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