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Satellite campuses are becoming increasingly popular as a growth strategy for senior living organizations. According to specialty investment bank Ziegler, approximately 12% of surveyed senior living provider organizations plan to develop a satellite campus within the next two years. The percentage rises to 14% for single-site providers but drops to 10% among multisite providers.

Ziegler explains that satellite campuses are typically located near a larger, main campus, often a continuing care retirement or life plan community. These satellite campuses usually have a smaller footprint and are branded in connection with the parent/main campus. In some cases, a satellite campus might be situated in a downtown, urban location, while the main campus is in a suburban setting.

Most satellite campuses do not include skilled nursing facilities and primarily offer independent living units. By building a secondary campus, providers have the opportunity to test the waters and expand to a second location without the risk and investment required for a full-continuum campus that may be geographically distant from the existing community.

Lisa McCracken, Ziegler’s Director of Senior Research and Development, suggests that satellite campuses may attract baby boomers who are looking for housing options that prioritize hospitality and lifestyle over care. These campuses provide additional housing product options for providers, adding choice and alternatives that can be appealing to prospective customers.

The development of satellite campuses is seen as a relatively low-risk approach compared to larger new developments. With the increasing demand for senior living options, this strategy allows organizations to expand their reach and cater to the evolving needs and preferences of seniors.

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