Taking a look at the NIC MAP® Construction Monitor as of Q2:15, which examines seniors housing construction in the Top 99 MSAs, we noticed on the AL side there were 22 MSAs with a construction vs. inventory ratio above 10%. If that doesn’t show a frothy development market, then what does? But, what is the cost to build in some of those MSAs? The Sarasota market, which has gotten a good amount of attention for its development pace, has eight assisted living properties under construction, and 893 units, representing a construction vs. inventory ratio of 30.7%. According to our data, which tracks senior living construction projects since 2013, majority-AL communities in the Sarasota market have averaged approximately $208,300 per unit to develop. Compared to other Florida MSAs, that figure is on the low side, with $252,100 per unit in Orlando and $298,500 per unit in Miami, but tops the similar MSA of Tampa, which averaged $163,100 per unit.
