Recession - How is it impacting senior housing development?
Chief Economist of the Associated General Contractors recently stated that "the nation is experiencing the longest and steepest recession since the end of World War II and the outlook for the commercial construction industry remains grim at least through 2010."
As our aging seniors continue to age, what impact will this have on the homes for our seniors?
We are experiencing construction costs today that are similar to those of three years ago. Contractors are providing services "to keep their people busy," a business decision that has huge consequences for the contractors, but more importantly, the owners of the facilities.
Clients must make certain that due to the financial markets and global economy, the contractors proposing to perform work for you are in a position and maintain current assets in order to weather the financial storm.
It is difficult to obtain warranty work when the contractors are no longing in business. What are you doing in order to protect your senior housing investment from contractor default?
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