We were recently working with a client who was digesting a market study for a geographic area they had never explored before. The study was done by a reputable firm, thoroughly done and clear on what the market offered to seniors. We had unit sizes, rents, discounts, service offerings, programmatic offerings, and ages of all physical plants. It was crystal clear on what product existed within 15 miles of the client's site.
The team quickly jumped into the calculus of how large their units and low their rents would have to be to be seen as an incremental value. And this is so natural
But here's the trap: the key to a successful development is identifying what ISN'T in the market - what gaps exist or what needs aren't being met. You can't see that as easily but it's there. It's what we find most compelling about this cycle in the senior market - with so much "new" product that looks like old product, there is a large opportunity for differentiated product.