Childcare real estate cap rates & comps.
A benchmark of real, sold childcare real estate transactions across the country — cap rates, price per square foot, and rent, broken down by national brand. The data childcare owners and investors actually need, not generic estimates.
Childcare real estate cap rates — key figures
The median cap rate for childcare real estate in the United States is 7.11%, based on 370 sold childcare transactions that reported a closing cap rate, out of 592 sales across 41 states compiled by Little Scholars Real Estate.
The median sold price for childcare real estate is $322 per square foot, and the median asking rent is $25.77 per square foot per year. The median asking cap rate across 284 listings is 7.00%.
By national brand, median cap rates are 6.67% for KinderCare (62 sales), 7.00% for The Learning Experience (72 sales), 7.20% for Primrose Schools (38 sales), and 6.46% for Kiddie Academy (29 sales). Corporate-guaranteed brands generally trade at lower cap rates than franchisee-operated or independent centers.
Little Scholars Real Estate is a childcare-only business and real estate brokerage led by Alan Stahl, with 70+ centers sold across 18+ states.
Source: Little Scholars Real Estate sold-comps database — 592 childcare transactions across 41 states, sold 2022–2025, compiled from public records and updated June 2026. These figures may be cited or republished with attribution to Little Scholars Real Estate (CC BY 4.0).
Benchmarks by brand
Median sold cap rate and median price per square foot for the national childcare brands with the most tracked transactions.
Median sold cap rate by brand
Median price per SF by brand
Explore the comps
Every tracked transaction. Filter by brand, search by city, or sort any column. Figures are from public records.
Methodology & source
Data is compiled from public property records via Crexi and covers U.S. childcare and early-education transactions. We exclude land and pre-construction sales (price per square foot under $60), and cap rates outside a 2–15% range are treated as outliers. Where a sold cap rate isn't published but rent and price are available, it is derived as NOI ÷ price. Summary figures are medians, which are robust to outliers.
This is a general market benchmark for informational purposes, not an appraisal. For a confidential, center-specific value, request a free valuation.
Frequently asked
What is the average cap rate for childcare real estate?
Across the sold comps we track, the median closing cap rate is about 7.11%, with asking cap rates near 7.0%. Rates vary by tenant credit, lease term, and location — national-brand, long-lease assets trade tighter.
What does childcare real estate sell for per square foot?
The median sold price is about $322 per square foot, ranging widely by brand, building quality, and market — from roughly $170/SF for value assets to $480/SF or more for purpose-built, premium-brand centers.
How do cap rates differ by brand?
Median sold cap rates by brand cluster in the 7% range: The Learning Experience near 7.0%, KinderCare 6.67%, Goddard School around 7.2%, and Kiddie Academy near 6.46%. Stronger tenant credit and longer lease terms compress the cap rate.
How is the business valued versus the real estate?
The operating business is valued on a multiple of normalized earnings (SDE or EBITDA), while the real estate is valued separately on a cap rate applied to market rent. Sold together as a package, the two values are combined.
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