How to Invest in Child Care NNN Properties In 2023

Investing in a child care center can be a great opportunity for investors looking for a stable and growing industry. The demand for child care services is increasing as more parents are entering the workforce, and the industry is expected to continue growing in the future.

Before investing in a child care center, it is important to conduct thorough research and due diligence. Investors should evaluate the enrollment, location, management team, and the competition in the area. Additionally, investors should also review the financials of the center, including the revenue, expenses, and occupancy rate.

One of the key benefits of investing in a child care center is the potential for long-term cash flow. Child care centers typically have long-term leases, which can range from 5 to 20 years, providing investors with a stable income stream. Additionally, as the demand for child care services continues to increase, investors can expect to see potential growth in the value of the property and potentially higher rental income over time. Given child care demand growth, child care providers are likely to exercise their options, and could have terms that go 30+ years.

It's worth noting that investing in a child care center can also come with certain risks. The occupancy rate of the center can fluctuate, which can affect the revenue and cash flow. Additionally, the center may also face competition from other centers in the area, which can affect the occupancy rate and revenue. Areas may also grow older over time, with rising home prices in some areas pricing out young families. Investors should carefully evaluate these risks before making a decision.

In summary, investing in a child care center can be a great opportunity for investors looking for a stable and growing industry. The demand for child care services is increasing and the industry is expected to continue growing in the future. Before investing, investors should conduct thorough research and due diligence, evaluate the location, quality of the facility, the reputation of the center, the management team, and the competition in the area, and review the financials of the center. Investors should also be aware of the risks associated with this type of investment.

If you are interested in more information about available NNN child care centers available, please contact:

Alan Stahl at alan@futureinsiterealty.com

After being party to more than 40 pre-school transactions, including the leasing, development, sale, and releasing of Kindercares, Tutor Times, The Learning Experiences and even small boutique schools nationwide, and personally operating two Tutor Time Child Care Centers with an average annual enrollment of 350 students over 15 years, we have shifted our focus to pre-school brokerage.

Our intimate knowledge of the inner workings of the entire child care industry has allowed us to gain significantly more favorable terms for both the Tenant and the Landlord because we understand both positions after personally experiencing them.

Whether you want to renegotiate the lease of your current child care Tenant, sell your real estate, lease out your child care center to another pre-school Tenant, sell the child care business, or sell the real estate and child care business as a package, we can assist you.

You can also view our market report here.