Planning, bankruptcy and beyond: Why CCRC design should be more than cosmetics By great living+studio Part 1 – From Vision to Reality: The intention of design is short July, 2025

This is part 1 of a two -part series. Part 2 is available in Senioriving.studio/blog.

While the recent Wall Street Journal cover highlighted CCRC bankruptcy, which affects 16 facilities and $ 190 million in entry fees, Driving data¹ It appears that bankruptcy rates remain less than 1 % at the industry level. The true story lies in how to make strategic design decisions as a financial infrastructure instead of strengthening cosmetics, with quantitative measurable effects on occupancy rates, operational costs, and a long -term investment return.

address: “I paid a million dollars to join a senior facility.² PublishedJuly 7, 2025 Main quote“Families lost at least $ 190 million in 16 bankruptcy in continuous retirement societies.”

Driving response³ (July 10, 2025):

• 90 % of independent living clips⁶ The occupancy is above 80 % in Q1 2024
• Real estate with occupancy that exceeds 80 % is “the best position to achieve financial sustainability”
• Regional recoveryThe mid-Atlantic areas and the northeast show the strongest occupancy rates (87-93 %)

2024-2025 construction costs⁷:

• Independent life: 233 dollars -354 dollars per square foot, depending on the quality level
• With the help of living: 269 dollars -439 dollars per square foot
• Skilled nursing: 232 dollars -538 dollars per square foot
• Average general development⁸: 317,400 dollars per unit (17.8 % increased since 2020)

The collapse of the cost structure:

• Difficult costs: 70.2 % of the total development cost
• Soft costs: 18.5 % of the total cost of development
• Site acquisition: 8.2 % of the total cost of development
• FF & E: 3.6 % of the total development cost

Operating cost effects:

• The opening cost of the opening is 10,000 dollars+ a day In salary statements, employees of entirely employee societies
• Residing rates increased from 20 % to 50 % In some societies of more than 15 years
• The average length of residence decreased from 2-4 years to about one year In many societies
• High -performance design reduces operational costs by 14 %⁹ More than 5 years old

Examples of employee efficiency:

• Case study of the mechanical food service⁰A rental contract of $ 900 per month provides coverage of 90 hours/week with a third of the cost of part -time assistants
• Weak design forces 10-15 minutes For every resident of meal service
• The skilled worker works 5.7 % annually With continuous employment deficiency

Project overview: Re-Development of the main plan for 10 years (2010-2022) converting university campus in the 1960s into a prize society

Design features that provided the return on investment:

• Development strategy in stagesThree stages that allow financial recovery between the stages
• Diverse housing types: Pocket neighborhoods, zero power homes, upper apartments⁶
• Sustainability integration: Zero Energy Certificate Reducing Operating Costs
• The design centered around society: Joint squares and walking paths

Quantum measuring results:

Common design problems:

• CCRCS rental with an average of 84.4 % occupancy Against 89.3 % for CCRCS
• Regional differencesMarkets that are less than 80 % are indicated by financial tension
• Non -flexible design It requires great renovations to change the care models

CDC Update Virus HIV (March 2024):

• Focus on Improving ventilation as a strategy for basic prevention
• Air division requirementsNegative pressure systems in health care wings
• Spatial: One room for brutality wherever possible
• Hvac enhanced systems With increased changes in the air per hour

Design implementation costs:

• 50,000 dollars -100,000 dollars per facility To improve environmental controls
• Minimum 42 “Introduction View To improve blood circulation
• Divide from air processing systems For different care levels

Current standards:

• Ada requirements: 50 % of the units that can be accessed in long -term long -term care facilities
• Fair housing lawCCRCS units required for CCRCS built after March 1991
• Global design principlesFair use, flexibility and simple operation

Cost analysis and return:

• 10-15 % installment For comprehensive design in the new construction
• $ 42400 average cost To update the current homes in exchange for building global design from the beginning
• 4.4x the return on investment In some higher operational improvements

Current situation:

• 38 countries organize CCRCS activity With varying control levels
• North Carolina (more stringent): 50 % operating reserve requirements, zero bankruptcy rate
• California construction code changes: 2025 Standards starting from January 2026

Main performance indicators²⁴:

• The targeted occupancy: 90 %+ for optimal financial performance
• Revenue for each room available: ~ 3000 dollars the monthly target
• Participation of health and wellness: 70 %+ Participation is associated with occupancy 95 % compared to 85 % for a decrease in participation

Design work factors:

• Natural light and views: Evidence -based research shows positive health results
• Building sweet spot: 10-17 years of real estate on average 91.6 % occupancy
• The position of the shared area: Distances along the circulatory paths see the highest use

JD Power 2022 The Study of Supreme Living²⁵:

• Independent life: 734/1000 Public Satisfaction Point
• With the help of living/memory care: 829/1000 family satisfaction points
• The largest satisfaction decreaseBuildings/foundations (-10 points), community employees (-12 points)

Top design preferences:

• Features in the unit: Full kitchen, washing room, natural light, additional storage
• Community spacesKitchens Show, Pistro, Fitness Rooms, Art Rooms
• 83 % of independent neighborhood population Reporting the feeling of “at home” all or most of the time