Shep Roylance answers the question of whether or not he thinks the presidential elections would make any difference to senior living.
By Pam McDonald
When asked if he thought the presidential elections would make any difference to senior living, Shep Roylance, Senior Vice President of JCH Consulting Group, a full-service real estate brokerage company and Senior Housing Forum partner, says, “I don’t think that it will. Do I think it may have an impact on interest rates going forward? Yes I do.
“And . . . I think possibly some of the reason why the transaction volume has gone down is that a lot of people are sitting on the sidelines waiting to find out who our next president is going to be. I see that a lot every election . . . I feel like there is a wait-and-see attitude right now within the industry a bit.”
Looking to changes in the economy as we move forward, Shep says, “I feel as if we were at the top. We’re coming down the other side of our economic cycle . . . I feel like we’re due for a slight downturn. I’m hopeful that it’s not a major dip like last time, but I feel like we’re in for a couple market corrections.
“I think pricing has gone a little bit too high as far as price per bed for skilled and cap rates for assisted living. Once you start seeing all the other real estate markets or real estate companies trying to enter into our market from other segments . . . those are red flags to me. Maybe it’s not red, it could be an orange or yellow . . . I’m getting a lot of calls from apartment guys or hotel guys looking to enter the market because the cap rates are so much better. That to me is a warning.”
To learn more about the changing face of senior housing or SNFs, please contact Shep at (805) 633-4649 or visit his website to see current featured listings by clicking on the button below: