Detroit childcare real estate: values, cap rates & market data.
What childcare centers and daycare properties are worth in the Detroit market — grounded in our own sold-comps database, our 2025 tuition survey, and U.S. Census data.
Detroit, MI childcare market — key figures
The median childcare real estate cap rate in Michigan is 7%, based on 6 of 9 sold childcare transactions compiled by Little Scholars Real Estate, at a median sold price of $250 per square foot.
In the Detroit, MI metro, 11 national-chain childcare centers surveyed in 2025 reported median monthly tuition of $1,797 for infants and $1,494 for preschool.
The Detroit, MI metro has 246,761 children under age five and a median household income of $75,123; its population grew 1.2% and its under-five population declined 2.6% 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).
Stable, full, and underbuilt.
Metro Detroit's population and under-5 count both held roughly steady from 2018 to 2023, while median household income rose 28% to $75,123. It's not a growth story — it's a stability story.
The schools we surveyed run at an 89% median occupancy — among the fullest of any market we track — because little new capacity gets built here. Michigan comps trade around a 7.0% median cap at just $250 per square foot: full buildings at value pricing.
Real rates from Detroit-market schools.
Actual monthly tuition rates our team received from national-chain schools in this market during our 2025 survey — not averages. Tuition drives revenue, and revenue drives value.
| Brand | Location | Infant / mo | Pre-K / mo | Licensed capacity |
|---|---|---|---|---|
| KinderCare | Farmington Hills (Middlebelt Rd) | $1,905 | $1,516 | 118 |
| KinderCare | Auburn Hills (E Walton Blvd) | $1,797 | $1,494 | 167 |
| KinderCare | Dearborn (Evergreen Rd) | $1,580 | $1,126 | 113 |
| Tutor Time | Canton (N Canton Center Rd) | $1,797 | $1,451 | 151 |
| Tutor Time | Canton (S Canton Center Rd) | $1,788 | $1,386 | 150 |
| Bright Horizons | Detroit (W Outer Dr) | $1,390 | $1,251 | 76 |
| Bright Horizons | Detroit (Seward St) | — | $1,670 | 110 |
| Bright Horizons | Pontiac (Bassett St) | $3,464 | $2,793 | 176 |
| Kiddie Academy | Rochester Hills (S Livernois Rd) | $1,624 | $1,386 | 105 |
| Childtime | Farmington (W 12 Mile Rd) | $2,091 | $1,758 | — |
| Childtime | Utica (Hayes Rd) | $1,827 | $1,576 | — |
What childcare properties trade at in Michigan.
Across our sold-comps database, Michigan childcare properties have typically traded at 7.0–7.3% cap rates, at a median of $250 per square foot, across 9 statewide sales. 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 Michigan.
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