This year’s Greystone Event featured story after story of how non-profit senior living providers are moving forward with growth strategies. On the heels of another successful and inspiring Event, Senior Housing News spoke to Greystone President Mark Andrews about the the senior living industry and what to expect from non-profit organizations in both the short- and long-term.
Here’s a brief portion of the interview that addresses factors that are motivating non-profit providers:
In the nonprofit sector, we are seeing a very intense and renewed effort and focus on nonprofit organizations to expand current campuses, to redevelop older assets and even look at growing into new market locations. I think the reasons for that are several-fold.
One, just simply because the economy is doing better, those organizations have more confidence in investing in their businesses, as opposed to staying on the sidelines. Everybody certainly sees and understands the age wave and the sheer magnitude of the growth of the senior population. And the third reason is perhaps defensive, in that we are seeing large capital investments being made by for-profit investors.
So simply, in order for the not-for-profit organizations to maintain their market share and remain competitive with new capital investment coming in for the for-profits, they must reinvest to make their product market-aligned, to make it of interest to today’s senior, whose consumer’s preferences are different than the senior of 10 years ago, and more importantly the senior that we’ll see coming through the door 10 years from today will be very different in terms of needs and wants than the current residents. Everybody realizes they must adapt, they must change, they must grow in order to remain market-aligned and market-relevant. So we’re seeing significant planning and expansion activity now on the not-for-profit side.