Colliers International launches Land Lease Community Rating System to rank communities

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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.