The child care industry is a $35 billion annual market and has been growing at a rate of over 4.2% per year. As a result, many investors have been turning their attention to the industry and exploring various investment opportunities, including net lease properties, also known as triple net (NNN) properties.
In the year 2022, child care NNN sales had an incredible year, with over 800 sales - many at record breaking cap rates. According to data from Real Capital Analytics, the average cap rate for child care properties sold in 2020 was 6.5%, while in 2021 the average cap rate was 6.4%. I believe the public opinion of child care as an essential use after COVID brought more interest to the assets. Furthermore, child care NNN properties are historically higher cap rate assets, making many investors consider the asset over and above neighborhood shopping centers.
Future In-Site Realty understands the child care industry.
As a family business, we established a niche in the child care industry. My wife, Debbie, has operated both schools as the Business Manager and franchisee. With an average enrollment of 350 students, she knows the ins and outs of successfully running a child care business. We are experts at negotiating child care sales and working with buyers interested in a 1031 Tax Exchange from California to North Carolina through our national brokerage network. When you're in the market to buy, sell or renegotiate your child care facility in any State, we would like the opportunity to earn your business.
Enclosed find a list of comparable sales nationwide for large facilities averaging over 6000 sq. ft. If you have any questions or would like a broker price opinion for the property you're selling or thinking about buying, please reach out.
Sincerely,
*One of the key metrics used to evaluate NNN properties is the capitalization rate, or cap rate. The cap rate is the ratio of the net operating income (NOI) to the purchase price of a property. It is used to measure the rate of return on an investment and is an important factor in determining the value of a property.
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