Colorado-Real-Estate-Journal_440783

January 2025 — Health Care, Senior & Life Sciences Quarterly — Page 19 www.crej.com CONSTRUCTION D enver’s health care sector is experiencing explosive growth, with a 10.9% incre ase over the past five years – three times the national average, according to the 2023 Metro Denver EDC report. Rapid expansion brings both exciting opportunities and significant challenges, from increasing competition to navigating shifting regulations and address- ing evolving patient needs. Health care leaders are reshaping the city’s landscape by investing in innovative, patient-centered facilities, including outpatient centers, expanded behav- ioral health services and senior living communities. At a recent health care summit, our team facilitated a discussion with health care leaders to discuss challenges. The summit highlighted Denver’s shift from a systematic to a patient-centric approach, prioritizing needs, enhancing care quality and maximizing value. Human-centered design is driving innovation, reducing costs and creating facilities that opti- mize both care and efficiency. This swing toward patient-centered care is exemplified by the recent long-term partnership between Com- monSpirit Health and Kaiser Perman- ente in Colorado. Announced in Sep- tember, the collaboration integrates facilities and specialty providers to enhance patient convenience and accessibility. Denver’s growing aging population is reshaping the healthcare land- scape, driving demand for senior living facilities that prioritize accessi- bility, safety and social interaction. To meet these needs, designs are evolv- ing to incorporate homelike features, wellness centers, multiuse spaces and easy access to health care within communities. Outside the summit discussion, Jami Mohlenkamp, AIA, principal at OZ Architec- ture, shared his insights on senior living facilities in Denver: “Smaller home models, typi- cally 8,000 to 10,000 square feet with 10 to 12 rooms around a central living area, are sparking inter- est. They nurture a family atmosphere, enhance mobility and reduce the need for wheelchairs, as residents are able to function in a more compact environment. This concept is influencing larger com- munities, which are adopting similar ‘neighborhood’ models to create homelike environments. Regardless of the model, staffing challenges and the need to reduce costs remain constant. While high-end older-adult communities will continue to be in demand, there is a significant gap in the market for affordable middle- market options.” With rising demand for behavioral health care services, the need for more community-based, patient- centered facilities is growing. Mental Health America ranks Colorado 17th in access to care, and 46th for over- all mental health, underscoring the urgent need for improvement. Some factors that contribute to Colorado’s low ranking include: geographic dis- parities in mental health care access, insufficient funding for mental health programs, stigma surrounding mental health, substance abuse and co-occurring disorders, and short- comings in crisis response and emer- gency care. At the summit, Alisa Rice, prin- cipal at Stantec, served as a panel facilitator, contributing her insights into key industry challenges. Outside the summit, she remarked, “Facility design is evolving by incorporating spaces that encourage healing and comfort while addressing acces- sibility challenges and integrating facilities within communities such as crisis centers. Crisis centers can help keep patients out of hospitals by providing immediate and appropriate care for individuals experiencing a mental health crisis. It’s encouraging to see the evolution in facility design and the focus on community integra- tion.” An ongoing discussion for health care leaders is Denver’s Energize Denver Ordinance (2023), which aims to reduce greenhouse gas emissions from commercial and multifam- ily buildings by 80% by 2040. Older health care and senior living facili- ties face challenges in meeting these goals due to the high costs of retro- fitting energy systems. While green building practices and LEED certifica- tion can reduce operational costs, the financial and logistical barriers make implementing sustainability initia- tives in older facilities difficult. “The Energize Denver Ordinance is a big challenge for healthcare facili- ties, especially those with aging infra- structure. Balancing infrastructure upgrades with patient care demands, rising costs and tight timelines requires strategic planning. It appears industry discussions are increasingly focused on making Energize Denver more feasible, helping health care operators enhance energy efficiency while maintaining high standards of patient care,” said Rice. Another, and perhaps the most prominent, takeaway from the recent health care summit was collabora- tion is essential to overcoming health care construction challenges. By fostering strong partnerships, teams can navigate complex projects more effectively, drive innovation, and achieve better outcomes. Catamount helps health care operators navigate construction chal- lenges with tailored approaches like the integrated project delivery con- tract or the flexible lite IPD model. Both emphasize lean principles, early collaboration and risk minimization. Proactive preconstruction services, including value engineering and bud- geting, ensure cost-effective, timely solutions and adaptable designs. Spe- cializing in health care, we provide value through a certified infection prevention team emphasizing strong quality assurance/quality control, which lays the foundation for a col- laborative, process-driven approach. Using specialized tools to streamline scheduling, communication and proj- ect management, the team minimiz- es disruptions in active health care environments, prioritizing patient care and delivering projects on time with operational efficiency and long- term value. Although Britton McKinnon, project executive at Catamount, did not com- ment during the summit, he later shared, “There are no bad days when working in a hospital; every decision and action is fueled by a deep pas- sion for improving the patient and staff experience. Our unwavering commitment drives every project, ensuring each phase creates a safer, more efficient environment that ben- efits all involved.” By partnering with a contractor early in a project, you gain a strategic partner that not only stays ahead of regulations but also drives innova- tion. s Autymn.Rubal@catamountinc.com Strategic partnerships, innovation drive growth circadian rhythm dimming or color temperature adjustments can simu- late natural daylight, creating a sup- portive environment. By integrating natural elements throughout senior living communi- ties, architects are redefining these spaces as holistic environments that nurture residents’ and caregivers’ well-being, setting the bar for com- passionate design. Farm-to-table dining thrives due to the increasing interest in locally sourced and organic food. Restau- rants are adapting their menus to include locally sourced ingredients in response to this increasing con- sumer preference for healthier and environmentally friendly dining experiences. Food service design, emphasizing healthy eating and higher-quality food options, includ- ing indoor-outdoor kitchens and dining areas, is gaining importance throughout the industry. Statistics show a 36% increase in guests’ time spent in restaurant and dining spac- es with biophilic elements, which shows how robust biophilic design is. n Smart fitness devices. Wearables and tracking technology for health monitoring are designed to track and provide valuable insights into our dietary habits. Fitness equip- ment lets you upload personalized workouts. Telehealth allows resi- dents to have a doctor visit remotely over video chat. Smartwatches mon- itor important health markers and create reports to help with preven- tive wellness. n Conclusion. The future of senior living architecture will continue to prioritize wellness. Thoughtful, wellness-driven design enhances residents’ lives, driving developer ROI by attracting higher occupancy rates. Boomers want a nontraditional senior housing option that affords them an active, wellness-based, social-driven lifestyle. Age gracefully, live longer, healthier and happier. s cfussy@hcm2.com Fussy Continued from Page 17 Autymn Rubal Director, business development, Catamount Constructors Inc. n Site selection and barriers. Once market viability is established, site selection is pivotal. The most attractive sites pair strong demographics with proximity to essential services, includ- ing hospitals, pharmacies, grocery stores and entertainment. Family visits also factor in, making easy access and convenient parking critical. Local regu- lations covering zoning, licensing and environmental reviews can significant- ly affect project timelines. Specialized communities with memory care beds may also face additional scrutiny due to safety requirements. Entitlement processes, feasibility studies, applica- tion submissions, public hearings and final approvals may encounter delays, especially if there is resistance to the new development. Engaging stakehold- ers early and maintaining open com- munication can streamline approvals, foster community support and ensure the development aligns with neighbor- hood expectations. Meticulous plan- ning, legal guidance and a reputable developer are essential to the success of any project. n Marketing and efficiency. Even the best-designed communities require effective marketing to reach full occu- pancy. Targeted campaigns, local part- nerships and a strong online presence can draw seniors and their families to a new or newly acquired property. Offering tours, open houses, and trial stays helps seniors experience the community’s environment and ser- vices firsthand. In addition, building relationships with local health care providers, senior centers, and social networks can bolster referrals and reputation. Innovation in design and construction can help address both the urgent shortfall in senior housing and your property’s marketing outcomes. Staying up to date on the latest trends and hospitality services can inspire approaches to creating high-quality dining service models, flexible com- mon areas, health and wellness spac- es, social enrichment activities, and adaptable technologies that enhance resident comfort and reduce opera- tional costs. Operational efficiency is equally vital for sustaining profitability. Skilled staffing, flexible service packages and ongoing employee training ensure quality care, helping reduce resident and staff turnover through enhanced satisfaction. Implementing technol- ogy such as electronic health records, predictive analytics, and smart build- ing features can streamline operations and free staff for more personalized engagement. Data-driven decision- making allows operators to fine-tune pricing, adjust service offerings and maintain optimal staffing levels. By combining strategic marketing with operational efficiency, senior living communities can foster strong occu- pancy, stable cash flow and long-term returns for the informed investor. n Conclusion. The senior living mar- ket is poised for transformational growth in a unique sector at the inter- section of commercial real estate, hos- pitality and health care. With a project- ed $275 billion capital investment gap and 73 million baby boomers surpass- ing age 70 in the next decade, mark- ing the first time in U.S. history that seniors will outnumber children, rising life expectancies and a deficit of over 800,000 senior living beds highlight the urgent need for expansion and innovation. For institutional investors, this represents a rare convergence of necessity and opportunity, while posi- tively impacting the lives of seniors. s jthomas@ba.org Thomas Continued from Page 18