Using refined methodologies developed by Brecht Associates, we evaluate each market in a number of ways:
- Total Unit Potential – Given an agreed upon age and income criteria, we assess how many new or additional units of a planned level of care the market can absorb. The assisted living and memory care analysis takes nationally recognized data related to the percentage of households by age requiring assistance with daily living; and for memory care, nationally recognized dementia prevalence rates.
- Project Penetration Rate (PPR) is the percentage of age and income qualified households in the MA that the Project needs to capture in the year of analysis in order to fill planned units and achieve stabilized occupancy.
- Market Penetration Rate (MPR) is broadly defined as the depth of sales of a particular product in a given market. The MPR for a senior housing product reflects the percentage of age and income qualified households within the defined geographic market area assumed to reside in existing competitive units (at 95% occupancy) as a percentage of the total age and income qualified households.