The commercial real estate company has unveiled a new rating system which it says will enables owners and investors to gain a better understanding of how a community should perform in the market as the sector consolidates and the line between parks/villages and LLCs blurs further.
Written by Colliers’ Head of Healthcare & Retirement Living for Asia Pacific, Shalain Singh, and its Associate Director of Healthcare & Retirement Living, Liam Greentree, the Land Lease Community Rating System (LLCRS) categorises communities according to four classes:
- Class A: Excellent
- Class B: Good
- Class C: Average
- Class D: Fair
Communities are ranked according to their location, density (more than 31 sites per hectare ranks ‘fair), size (over 125 homes is the ideal), amenities, home mix (100% manufactured homes is preferred to van or annex homes), age/condition, quality of the homes, competition (and the net operating profit per site (over $6,500 per site is considered excellent).
“Utilising the LLCRS ensures a consistent approach and provides a nexus between the analysis of market transactions and the application of appropriate valuation methods,” Shalain and Liam write.
It is available to download from their website here.