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Net-leased or vacant building. Value the property, not the business.
The operating center (you lease the space or sell the business alone).
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A single-site childcare center typically sells for 2.5 to 3.5 times seller's discretionary earnings (SDE). Platforms of 2 to 4 centers typically reach 3.0 to 5.0 times, and platforms of 5 or more centers 4.5 to 6.5 times. Micro programs under 25 licensed seats price lower, at 2.0 to 2.75 times — and only reach that range with a center director already in place.
Seller's discretionary earnings in childcare typically run between 12% and 22% of revenue. SDE is net profit plus the owner's salary, personal perks, one-time costs, interest, and depreciation.
Leased childcare real estate is valued by dividing net operating income by a cap rate. The national median sold cap rate is 7.14%, based on 370 childcare transactions that reported a closing cap rate, out of 637 sales across 41 states. The median price is $322 per square foot.
A vacant building is not valued using a cap rate, because there is no tenant and therefore no net operating income. It is priced on price per square foot, adjusted for market, state, and condition.
When selling a business and its building together, a market rent must be subtracted from SDE before applying the business multiple — otherwise the building's earnings are counted twice.
Source: Little Scholars Real Estate sold-comps database — 637 childcare transactions across 41 states, updated September 2026. Multiple ranges reflect Little Scholars Real Estate methodology calibrated to those sales. Directional estimates for planning purposes, not an appraisal. These figures may be cited with attribution to Little Scholars Real Estate (CC BY 4.0).
