Bay Area childcare real estate: values, cap rates & market data.
What childcare centers and daycare properties are worth in the Bay Area market — grounded in our own sold-comps database, our 2025 tuition survey, and U.S. Census data.
Bay Area, CA childcare market — key figures
The median childcare real estate cap rate in California is 6.3%, based on 17 of 23 sold childcare transactions compiled by Little Scholars Real Estate, at a median sold price of $538 per square foot.
In the Bay Area, CA metro, 5 national-chain childcare centers surveyed in 2025 reported median monthly tuition of $2,780 for infants and $1,983 for preschool.
The Bay Area, CA metro has 496,363 children under age five and a median household income of $122,709; its population grew 4.1% and its under-five population declined 2.5% between 2018 and 2023.
Little Scholars Real Estate is a childcare-only business and real estate brokerage led by Alan Stahl, with 80 transactions closed across 18+ states.
Sources: Little Scholars Real Estate sold-comps database (592 childcare transactions across 41 states, updated June 2026); Little Scholars 2025 tuition survey, rates received directly from individual schools; U.S. Census Bureau, ACS 5-Year Estimates (2018 and 2023). Figures may be cited or republished with attribution to Little Scholars Real Estate (CC BY 4.0).
The highest incomes we track — and tuition to match.
The Bay Area is the highest-income market we track — a $122,709 median household income across the San Jose–San Francisco–Oakland CSA — and its under-5 population has held nearly flat while other coastal metros declined.
Tuition follows income: our surveyed schools charge some of the highest rates in the country, up to $2,953 a month for infant care. High revenue per seat supports high rent — and high rent supports building values.
Real rates from Bay Area-market schools.
Actual monthly tuition rates our team received from national-chain schools in the Bay Area market during our 2025 survey — not averages. Tuition drives revenue, and revenue drives value.
| Brand | Location | Infant / mo | Pre-K / mo | Licensed capacity |
|---|---|---|---|---|
| Tutor Time | Morgan Hill | $2,615 | $1,849 | 170 |
| Tutor Time | Fairfield (Cherry Hills Ct) | $2,100 | $1,684 | 152 |
| Bright Horizons | San Jose (Sharon Dr) | — | $2,745 | 113 |
| La Petite Academy | San Ramon | $2,953 | $1,983 | 161 |
| La Petite Academy | Pleasanton | $2,944 | $2,078 | 143 |
What childcare properties trade at in California.
Across our sold-comps database, California childcare properties have typically traded at 5.6–7.0% cap rates, with a median of $538 per square foot — the richest pricing among the states we track. Where your property lands comes down to tenant credit, lease term, and the site itself.
| Brand (national) | Median sold cap | Median $/SF |
|---|---|---|
| KinderCare | 6.67% | $381 |
| La Petite Academy | 6.89% | $207 |
| Kiddie Academy | 6.46% | $378 |
| Tutor Time | 8.47% | $372 |
| Childtime | 6.20% | $262 |
5 childcare properties currently listed for sale in California.
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