Childcare has become a modern-day necessity for all working adults.
Nearly 60% of children under the age of 5 regularly attend some form of child care. On average, two-income families spend 15% of their income on child care. For investors, this is a clear sign of longevity and societal necessity.
There was a 73% increase in net lease child care transaction from the
year 2019 to 2021. When reviewing their figures for transactions, in 2019 there were 78 sales of child care centers. However, in 2021 this figure increase to 135 recorded sales.
Daycare facilities offer an attractive investment due to their long-term
triple net leases with national operators in good standing with strong rent increases on the base lease term. The childcare industry has become a backbone to our society, thus positively impacting the demand and consistency of tenancy.
With the pent up demand being driven up by the recent events, it is safe to say this essential business has a strong future as the segment continues to grow and adapt to the times.
(Statistics from Grandview Research, CoStar, HIG, and Globe St.)