Market Studies

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Market studies are recommended for new construction of seniors housing facilities.  They are required if the entity seeks to obtain HUD-insured financing for new construction.  Principle Valuation provides market studies to help seniors housing organizations determine the appropriate course of action in their market.  These studies help determine:

  • Total supply and demand for a specific market, including facility type and service
  • Whether to build, and if so, size and components
  • Pricing of services
  • Anticipated revenues and expenses

Principle Valuation’s seniors housing professionals answer these questions by analyzing and reporting on the following:

  • Demographic trends by age cohort to determine supply and demand
  • Absorption calculations
  • Competitive environment, including amenities, pricing and occupancy rates

Seniors housing entities, as well as lenders such as major commercial banks, FHA lenders, and REITs turn to us for market studies because:

  • They trust that our studies will be accurate and fair, and will be performed in a timely manner
  • Our studies are performed by professionals with specific expertise in analyzing the opportunities for seniors housing entities in different types of markets in all economic conditions
  • Our professional staff have specific expertise in all seniors housing asset classes, including real estate (land and improvements), equipment, and intangible assets


  • HUD compliant market studies for new construction facilities under the 232 program guidelines
  • A HUD-compliant market study for a replacement nursing home in North Carolina
  • A market study for a proposed assisted living and memory care facility in Georgia
  • A market study for a complex proposed nursing home including traumatic brain injury beds

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Our clients have used Principle Valuation for valuations for purchase and sale transactions, compensation relationships, and support for tax purposes. They do straightforward and intelligent work, and are very responsive.

Scott Becker, Partner, McGuire Woods

We selected Principle because of their experience and reputation in the market. They are very knowledgeable about the industry, and particularly HUD financing. They were very thorough and hit their deadlines. Their appraisal went through HUD with no issues, which also made the borrower very happy.

Ken Buchanan, Senior Vice President and Chief Underwriter (Eastern Region), Walker Dunlop

Principle Valuation provides excellent valuations for ongoing healthcare enterprises, as well as placing values on the individual assets. They are very timely, reliable, have a solid understanding of the regulatory implications of their work, and are authoritative in the way they present their information.

Mike Anthony, Partner, McDermott, Will & Emery

Principle Valuation is far superior to any other valuation firm we have worked with. They are knowledgeable about businesses, real estate and equipment. And their reports are always right the first time.

Ken Doran, President and CEO, Spectrum Heatlh Partners


190 South La Salle Street, Suite 2900
Chicago, IL 60603