The niche real estate sector that’s luring big money for small kids’ care

Published Wed, Dec 3 20258:00 AM ESTUpdated Wed, Dec 3 20259:25 AM EST

By: Diana Olick

A Fortec adaptive reuse project in Barrington, Illinois.

Courtesy: Fortec

A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public companies. Sign up to receive future editions, straight to your inbox.

Rising demand from parents for early education is causing a boom in a small but fast-growing subsector of commercial real estate. The sector is so undersupplied that it’s increasingly attractive to both developers and investors. 

The U.S. child-care market is currently valued at $65.2 billion and is projected to grow to $109.9 billion by 2033, according to a report from CRE brokerage B+E, citing data from Grand View Research. The surge is being driven by return-to-office trends for parents, advancements in educational technologies, and increased government funding — particularly for single and working mothers. 

And real estate is a huge part of the story. LEARN MORE…

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