Grand Rapids childcare real estate: values, cap rates & market data.
What childcare centers and daycare properties are worth in the Grand Rapids market — grounded in our own sold-comps database, our 2025 tuition survey, and U.S. Census data.
Grand Rapids, 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 Grand Rapids, MI metro, 4 national-chain childcare centers surveyed in 2025 reported median monthly tuition of $1,585 for infants and $1,297 for preschool.
The Grand Rapids, MI metro has 68,717 children under age five and a median household income of $80,296; its population grew 9.9% and its under-five population declined 0.4% 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).
West Michigan's quiet boom.
Grand Rapids grew 9.9% from 2018 to 2023 — faster than any Midwest market we track — while its under-5 count held essentially flat. Household income rose 31% to $80,296.
Growth with stable child counts is the demand mix buyers underwrite for. Michigan comps trade around a 7.0% median cap at just $250 per square foot — real demand at value pricing.
Real rates from Grand Rapids-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 |
|---|---|---|---|---|
| Tutor Time | Grand Rapids (Old 28th St SE) | $1,541 | $1,217 | 121 |
| Tutor Time | Jenison (Baldwin St) | $1,494 | $1,208 | 163 |
| Childtime | Grand Rapids (E Paris Ave SE) | $1,736 | $1,507 | — |
| Childtime | Grand Rapids (52nd St SE) | $1,628 | $1,377 | — |
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 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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