Looking Ahead: Pi Partners Laud Innovations, Trends, Opportunities for 2023
We asked some of our Pi partners and friends to share their thoughts about what they’re looking forward to in 2023. Judging by their responses, it’s going to be an exciting year filled with many opportunities for positive change, cutting edge innovations, partnerships and collaborations, plus much more.
“Continue to evaluate the size of your healthcare facility. Are you oversized? Are your apartments keeping pace with market expectations? Do you have the right mix of apartment types? While there is still much uncertainty about interest rates and construction cost, we feel that some of the challenges are abating. Undoubtedly, there will be development hurdles in the year to come, but several of these hurdles are already baked in and can be effectively managed through a well-thought-out plan. Labor shortages will continue to push greater creatively and innovation. We will likely see more panelizing and componentizing on projects to combat shortages, and forward-thinking organizations will include tech solutions that augment service offerings. We are experiencing early success with the Whiz commercial robot vacuum by SoftBank and the Servi hospitality robot by Bear Robotics. We don’t predict organizations will slow down in 2023 when it comes to optimizing technology”
- Zane Bennett, Director of Business Development, LCS
"Demand for senior housing will increase over the next five years, and we will see a corresponding growth in a la carte services, flexible or outsourced provider services, and other on-demand options for residents and operators. Elsewhere, co-living and other shared services models will emerge as ways to gain efficiencies and leverage costs. After investors focused primarily on multifamily and other core property types in recent years, interest will once again begin to increase for traditional senior housing in search for yield and more secular investment strategies. For some markets, occupancy and rent growth will be challenged in the short term, primarily for the more lifestyle-focused property types, as concern over home values (or the ability to sell homes) and the depletion of retirement accounts once again emerge as top concerns for potential residents. This will only result in greater pent-up demand for the more need-based sub-sectors of senior housing. At the same time, we will finally begin to see the stabilization of memory care after significant overbuilding; and identifiable brands similar to the hotel sector will emerge."
- Zach Bowyer, MAI, MRIC S Senior Managing Director, Cushman & Wakefield
"I am excited about a renewed energy at many of our communities with COVID in the rearview mirror and staffing challenges easing a bit (or maybe our hard work at focusing on this has paid off!). The teams are not as tired and worn out. It is nice to see them enjoying their jobs again and being part of thriving communities! Labor still needs to be a laser focus with higher wages, as well as other expenses. A lot of new technology is out there and continues to be introduced. Communities can’t afford them all, so integration with other systems to drive efficiency (time IS money), and true ROI measurement will be key for these to be successful in being adopted by senior living companies. Expense control overall, in addition to occupancy and realizing full a rate, is going to drive 2023 to try to 'stabilize' with realistic margins."
- Kristin Kutac Ward, CEO, Solutions Advisors
"I am hoping that as we enter 2023 that we can get back to basics, including a focus on our residents, growing the business and utilizing appropriate innovation to meet our needs with a challenging labor pool. I see a focus on innovation in 2023. This means doing more, and better, with less. Growing our own talent will continue to be key. Focus on what you are good at and push hard. In addition, there will be less access to capital, continued cost creep, and the need to rethink our approaches. Property and casualty insurance has gone crazy in the market, as have construction costs. Projects that were put off during the pandemic may now be 30% more. It will therefore be important to pick the right partners to work with as we forge onward."
- Dan Ogus, Executive Vice President & COO, HumanGood
"With 2022 as a pivotal year of growth and innovation for Good People, we plan to tap into our all-star network of senior housing leaders to make a mark on the field. That said, we are looking ahead to 2023 with excitement as we tap into an advisory committee of outstanding visionaries to lead the way in providing the best care to elders and bringing enriching experiences to a workforce that has worked so hard amid the staffing crisis. As always, I see the value of relationships, connections, and collaboration as essential to the success of this field, especially when it comes to the challenges we face. Good People is excited for the new year to bring us together in West Palm Beach in May and Ouray in September. Go #TeamGoodPeople 2023!!"
- Kane Marschall, President, Good People
"Don’t stop moving! Start planning now for expansions and repositioning. Repositioning should occur in down cycles so you can be in the position to lock in lower construction prices as contractors start to sharpen their pencils and hold prices for longer periods of time. Projects take time to design and get buy in, entitlements, financing, and sales. When the planning is done you can benefit from lower pricing for construction and be in sales when the market is favorable. While others wait to plan, you can benefit from starting sales with less competition."
-Charles Murphy, Executive Vice President/Senior Managing Director of Development and Real Estate, LCS
"With the current issues of inflation, labor shortages, regulations, and recession on the horizon, it will be very interesting to see who comes out of all this thriving. Staffing issues will continue to be a priority, and I think people need to look at their workforce differently. Flexibility is key, culture is overrated, and scaling your back office with drastically reduced costs is the only way we can survive these headwinds. Ultimately, I think lenders are not going to extend and pretend and that there will be massive ownership disruptions with a lot of operators and owners. I think we will see the difference between the companies that talk a good game versus those that can actually perform."
- Charles Turner, CEO, KARE
"Don’t expect what has been effective in the past to be relevant in the future. Change and innovation are on the agenda, and it is coming fast. Expect a more diverse resident mix. We’ll need buildings that will cater to a broader group of residents, and we will need spaces that are more flexible to meet these varied needs, interests, and activities.”
- Greg Hunteman, President, Pi Architects
Pi looks forward to working together with many partners, collaborators, and colleagues in 2023!
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