NIC joins the market data big leagues

Nursing Homes, April, 2004 by Richard L. Peck

For the first time, investors in the seniors housing and care market will have all-important local market information to aid them in making specific investment decisions. The National Investment Center for the Seniors Housing and Care Industries (NIC) has announced the release this summer of its first quarterly "Market Area Profile Data Service," covering 30 Metropolitan Statistical Areas (MSAs) in detail (table). Information will cover data on supply, occupancy, pricing, and market share for six categories of senior properties analyzed by age, size, for profit/not-for-profit status, and more.

According to NIC President Robert G. Kramer, this subscription service emulates data-reporting services that have been available to other categories of real estate investment for years. Anthony Mullen, NIC's director of research, added that this is an "historic event in the evolution of our industry, This helps legitimize us with other real estate classes, and I wouldn't be surprised if, in five years, there were more institutional investors in senior housing than in hotels."

Both Kramer and Mullen stressed, however, that key to the usefulness of the quarterly reports will be the cooperation of the relevant facilities and organizations in the MSAs. Specifically, they will be asked quarterly to enter their specific market-oriented data on a confidential electronic form designed by the research company ProMatura Group, LLC. NIC is seeking responses from all facility/organizations of 25 beds/units or more, though Kramer noted that ProMatura has adjusted the studies to remain valid at less than 100% response. It's in providers' interests to respond, NIC officials said, because more investor certainty will lead to better and cheaper availability of capital for all. NIC noted that the major provider organizations for nursing homes, assisted living, and senior housing are supporting the initiative.

Subscriptions will be available at various levels of information depth in the 30 MSAs, with introductory prices ranging from $7,500 to $25,000. For further information, contact NIC at (410) 267-0504 or visit www.nic.org.

Table. Top 30 Largest MSAs

Rank  Area

 1.   New York
 2.   Los Angeles
 3.   Chicago
 4.   Philadelphia
 5.   Dallas
 6.   Miami
 7.   Washington
 8.   Houston
 9.   Detroit
10.   Boston
11.   Atlanta
12.   San Francisco
13.   Riverside--San Bernardino
14.   Phoenix
15.   Seattle
16.   Minneapolis
17.   San Diego
18.   St. Louis
19.   Baltimore
20.   Pittsburgh
21.   Tampa
22.   Denver
23.   Cleveland
24.   Cincinnati
25.   Portland, Oregon
26.   Kansas City
27.   Sacramento
28.   San Jose
29.   San Antonio
30.   Orlando

Source: U.S. Census Bureau, 2000

--Richard L. Peck, Editor-in-Chief