Self-Storage
Self-storage facilities see more of a stable cash flow. Turnover is not a huge issue, as one would expect. Being that there are so many spaces available for rent, owners are less susceptible to big dips in vacancy rates. They are also very low-maintenance. One sweep and the spaces are ready for the next renter.
A few more things to consider when looking into investing into self-storage facilities are better CAP rates, fewer tenant problems, lower maintenance, minimal utilities, and lower expenses.
Neighborhood Shopping Centers
According to the recent ICSC report, the U.S. shopping center industry is meeting year-over-year growth in occupancy rates, rents and net operating income. By the end of Q4 in 2014, shopping center occupancy rates were 92.7 percent, the highest level since 2008.
In today’s world where everything can be purchased online, one thing we can rely on is the fact that people still want to go to the grocery store and pick out their own food. This is one reason that grocery-anchored shopping centers continue to be a reliable investment.
Seniors Housing
Independent living complexes are much like any other multi-tenant apartment complex except that they are marketed solely to people in their golden years. Independent living centers make up the second smallest percentage of the senior market with about 10 percent of the share. The average monthly cost of independent living ranges from about $1,500 to $3,500.
The largest share of the market goes to assisted living facilities. These types of facilities offer more services than independent living such as: laundry, food service, arranged activities, medical services, if needed, and on site drivers. These types of communities still offer a home-like feel and less institutional. The cost for a room in an assisted living facility is around $4,000 per month.
Skilled nursing facilities are also referred to as nursing homes. They provide around-the-clock care for seniors who need in-depth medical attention. The average cost for a private room at a nursing facility is $6,000 a month. Experts warn investors that unless they have a background in healthcare, it may not be wise to take their first foray into senior living investing in this type of complete care environment.
Continuing care retirement communities offer a mix of service levels including independent, assisted living and nursing home care all on one site.
Student Housing
Prices for student housing properties are now comparable to the prices investors pay for apartment properties. And, although the properties that are within walking distance to the campuses are more valuable, the demand is still strong for the properties located a bus ride away from the school. We’re seeing cap rates as low as 5.5 percent for properties within walking distance of tier-one universities, and as low as 7.5 percent for properties a shuttle bus ride away from tier-two or tier-three schools.