Senior living developers and operators are faced with many challenges in development today, often navigating the obstacles of dynamic demand and economic fluctuations. However, it’s possible for your business to thrive by implementing proven strategies alongside a senior living design-build partner like ARCO and avoid these traps.
Discover how industry leaders optimize operations, manage risks, control costs and accelerate schedules using three strategies, and how you can include them into your development plans to find success in the current marketplace.
1. Managing risk in your preconstruction efforts
The design-build approach combines management of expense risk and guidance of schedule through a single point of responsibility. Including this method in your preconstruction efforts provides the advantage of streamlined communication and accountability, resulting in reduced cost exposure, accelerated timelines and early assessment of design and construction budgets.
“The planning, analyzing and establishing of the scope of work, coupled with design services and streamlined communication helped us know exactly what to expect with our projects,” said Eric Murray of Providence Group.
Provision Living’s Dave Baylis noted the efficiency of the design-build process provides them the ability to “adjust for potential budget fluctuations in material, labor, loan interest rates or expected operational inflation,” which may otherwise be difficult to navigate. Baylis added, “Adaptability is key in anticipating customers’ needs. ARCO’s customer-centric approach to design-build allows Provision Living to accomplish this needed flexibility.”
2. Navigating due diligence (and beyond) with a trusted partner
Due diligence is essential for minimizing risks, optimizing project finances and delivering a successful development that meets quality standards, budgetary constraints and timeline expectations. But completing this essential phase can prove difficult if done without a trusted partner.
Thomas Jurbala of Generations Healthcare said the knowledge and experience ARCO brings to their projects’ due diligence is invaluable. “In addition to knowing what has or has not worked in the past, having their finger on the pulse in regard to the submarket, labor and cost implications of certain designs has been key to launching successful projects.”
Engaging with a design-build partner during due diligence can expose those heavy-hitting implications early and ensure expectations are met with little upfront investment, ultimately getting you operational faster.
3. Expanding your share across multiple markets
With the evolving demand in senior housing, expanding your market share through increased reach and rapid entry is essential to success. Working with a nationally-established partner will allow you to tap into larger markets, providing expansion potential and accelerated preconstruction schedules, while reducing exposure to regional market fluctuations or other localized challenges.
“As a regional player, Provision Living often enters new states that carry an entirely new set of regulations, general practices, subcontractors and suppliers,” said Baylis. “Working with a design-build partner with a national breadth of experience in various construction types and market sizes gives us the confidence we need to expand, without missing a beat or looking over our shoulder.”
If repeatability is a factor in your business, you’ll also want to consider how the design-build delivery makes replicating building and operational layouts faster and more efficient when evaluating site constraints in varying nationwide markets.
Jim Eisenhart of Aligned Equity Group said for him, rapid market entry is essential in this competitive climate. “Speed to market is one of the biggest advantages you can have as a senior housing developer. ARCO removes many of the risks associated with moving quickly towards the finish line.”
Build Senior Living with ARCO
From new builds to expansions, conversions to renovations, ARCO is suited for even your most complex senior living projects. Our team is prepared to help you manage risks, accelerate due diligence schedules, increase market share and make the most of this dynamic market so you’re well positioned for whatever lies ahead. Connect with our team today.
