Childcare Property Investment

As demand for early education grows, so does interest in childcare facilities as an investment. These properties offer stable returns, long-term leases and the security of a government-supported sector, making them a potentially smart choice for forward-thinking investors, especially when guided by Costi Cohen, an experienced childcare investment property buyer’s agent in Australia.

What is a childcare asset?
A childcare asset refers to property that is specifically designed, converted or operated for early childhood education and care services. These properties come in various forms, from purpose-built childcare centres to spaces incorporated into mixed-use developments or even residential homes repurposed for this function.

For example, a stand-alone childcare centre in a family-dense suburb may cater to local residents, while a facility within a commercial precinct could serve parents working nearby. The versatility of these properties makes them adaptable to different community needs, which enhances their appeal to investors.

In recent years, childcare facilities have experienced surging demand. Key drivers include federal government support through the Child Care Subsidy (CCS), the rise of dual-income households and increasing awareness of the importance of early childhood education. As more families rely on these services, operators seek well-located, modern facilities to accommodate growing enrolments.

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What is the future for
childcare assets?

Childcare assets are expected to continue thriving, supported by trends such as population growth, urbanisation and increased workforce participation. Australia’s growing population, particularly in urban and suburban areas, ensures a steady pipeline of young families requiring childcare services.

Government policies, such as the CCS, provide further stability to the sector by making childcare more affordable for families. This creates consistent demand for well-run centres, even during economic downturns. Moreover, as more women return to work, childcare facilities close to homes and workplaces are increasingly essential.

The future also holds opportunities for innovative childcare models, such as centres integrated into residential or commercial developments. High-density living and mixed-use precincts are likely to drive this shift, allowing investors to target areas with high foot traffic and family populations. Take advantage of emerging development trends and navigate competitive urban markets with a childcare investment property buyer’s agent from Costi Cohen.

Why buy
childcare centres?

Investing in childcare centres offers numerous advantages. A key benefit is the stability they provide through long-term leases, which often extend over a decade or more. These leases typically include fixed rental increases, giving investors predictable returns. Moreover, the strong and growing demand for childcare services, driven by Australia’s demographic trends, makes these properties a savvy investment choice.

However, like any investment, success depends on understanding the market and conducting thorough due diligence — something our specialist childcare investment property buyer’s agents can expertly deal with. The location of the facility plays a critical role. Centres located near schools, in areas with high-density housing or in family-oriented suburbs tend to perform best. The quality of the operator is also crucial, as experienced operators are more likely to maintain high enrolment rates and ensure regulatory compliance.

To maximise your return, consider properties in areas with growing young families and low competition. Upgrading or renovating older facilities can also boost enrolments and justify higher rents.

Key considerations when
investing in childcare centres

When buying an existing childcare centre, you should review their enrolment numbers, both past and present, to gauge demand. Profitability is another key metric — assess the net and gross profit to understand the financial health of the business.

The condition of the childcare property itself is equally important. An ageing or poorly maintained building may require costly upgrades to meet safety and compliance standards. Other factors to consider include the rent being paid, the terms of the lease agreement and any developments in the surrounding area that might affect enrolment numbers, such as new housing projects or competing childcare centres.

For new builds, understanding the local demographics is critical. Areas with a high concentration of young families or proximity to schools are often prime locations for childcare centres. It’s also worth considering the location’s accessibility — as being near high-density housing or workplaces increases the likelihood of steady enrolments. Assessing expected rental income and proximity to other childcare facilities will help you make an informed decision.

Why buy with
Costi Cohen?

Buying a childcare property on your own can be challenging. Without expert guidance from a childcare investment property buyer’s agent, you risk overpaying, missing zoning or compliance issues or choosing a poorly located property that struggles to attract enrolments.

Working with Costi Cohen helps eliminate these risks. As one of Australia’s leading commercial buyer’s agencies with experienced buyer’s agents for childcare investment properties, we provide market insights and a thorough due diligence process to ensure your investment is sound. From identifying the best locations to assessing enrolments, profitability and lease terms, we handle the complexities so you can invest with confidence.

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Our process begins with an initial consultation to understand your investment goals. From there, we search for childcare properties that align with your criteria, conduct detailed evaluations and negotiate the terms on your behalf. By partnering with Costi Cohen, you’ll have a dedicated expert guiding you every step of the way.

How to finance
childcare investment

Financing a childcare property is similar to other commercial investments but comes with some sector-specific considerations.

Most lenders are comfortable offering loans for childcare facilities due to the stability of the sector. Typically, loan-to-value ratios (LVR) go up to 70%, depending on the location and financial performance of the centre.

A well-structured loan is key to maximising your returns. Working with a finance broker who understands the childcare property market can help you secure competitive rates and terms. Costi Cohen can connect you with trusted finance professionals to help ensure your purchase is as seamless as possible.

Explore some of our
Childcare Purchases

FAQs

What is a childcare investment property buyer’s agent?

A buyer’s agent for childcare investment properties is a commercial real estate expert who specialises in sourcing, evaluating and securing childcare centres on behalf of the buyer. At Costi Cohen, our team focuses exclusively on buyers and not sellers, which means our priority is finding the best investment to meet your goals. Whether that’s rental yield, long-term capital growth or development potential, we act as your advocate in every step of the process.

Why should I use a buyer’s agent when investing in childcare centres?

Childcare investments come with unique considerations, such as operator quality, enrolment forecasts, compliance and zoning. A specialist childcare investment property buyer’s agent understands these complexities and will help you avoid costly mistakes.

At Costi Cohen, we conduct comprehensive due diligence, negotiate on your behalf and identify properties aligned with your goals. For more complex purchases, we also work alongside trusted property development consultants to ensure every aspect of the investment is handled with expertise. We assist with lease reviews and organising building inspections, making your childcare investment journey smoother, more strategic and far less stressful.

Do you help identify off-market childcare centre opportunities?

Yes. More than 80% of the properties we secure are off-market or pre-market. Our strong network of industry contacts gives clients early access to premium childcare centres not publicly listed. This competitive advantage is just one reason Costi Cohen is a top-rated childcare investment property buyer’s agent.

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What factors make a childcare property a good investment?

Several factors impact the performance of a childcare asset, including:

High demand from local families
Proximity to schools, workplaces and transport
Experienced operators with strong reputations
Long lease terms (typically 10+ years)
Secure rental increases
Low competition in the surrounding area

At Costi Cohen, our commercial property buyer’s agents assess all these variables and more to ensure your property is positioned for long-term success.

How does zoning impact childcare property purchases?

Zoning plays a major role in determining whether a site is suitable for a childcare centre. Certain council restrictions can limit capacity, operating hours or development approvals. As your childcare investment property buyer’s agent, we evaluate zoning risks early and work alongside planning consultants to confirm site viability before you purchase.

How do you assess tenant quality in childcare centres?

Tenant quality directly affects occupancy, compliance and cash flow. We evaluate:

Operator experience and reputation
Enrolment stability and waiting lists
Licensing and regulatory track record
Lease history and financial performance

By understanding who’s running the centre and how well, we help reduce risk and support long-term tenant retention.

Can you assist with due diligence for childcare properties?

Absolutely. We conduct detailed due diligence covering location analysis, enrollment trends, profit forecasts and more. Our goal is to ensure that every property meets your investment criteria and complies with local regulations. We also connect you with trusted partners for legal, finance and building inspection support.

What kind of ROI can I expect from a childcare investment property?

While returns vary based on location and lease structure, childcare centres often deliver stable, long-term income through 10–15-year leases and fixed rental increases. Many investors see strong yield performance due to high demand and limited supply in growth corridors. At Costi Cohen, we help identify properties with the potential to outperform market benchmarks. Speak with us for tailored ROI projections based on your goals.

What locations are ideal for investing in childcare centres?

Prime locations typically include:

Family-dense suburbs with young population growth
Mixed-use developments in high-density areas
Proximity to schools, parks or major employers
Undersupplied areas with few existing childcare centres

We use demographic data and market analytics to uncover locations that balance demand and return. Learn more about how we target strategic growth zones in our development site services, or view past acquisitions in our portfolio for real-world examples of high-performing childcare investments.

Do you provide support post-purchase?

Yes, our commitment as your childcare investment property buyer’s agent doesn’t end at settlement. We offer post-purchase support through our network of leasing, property management and advisory experts. Whether you need help onboarding a tenant, navigating compliance or preparing your next move, Costi Cohen is here to support your long-term success.