- The US child-care market is valued at $65.2B and projected to hit $109.9B by 2033, driven by working parents, new tech, and government support.
- The supply of early education properties for sale has grown by 14% since late 2024, with investors targeting net-leased centers.
- Fortec and Equiturn launched a $100M fund to institutionalize the sector, signaling growing interest in this underdeveloped CRE niche.
A Growing Opportunity
Demand for child care is rapidly outpacing supply, per CNBC. This shift is transforming early education real estate from a fragmented niche into a fast-emerging investment class. A report from CRE brokerage B+E projects that the child-care market will grow from $65.2B today to nearly $110B by 2033.
This boom is being fueled by several factors. More parents are returning to the office, government funding has increased, and educational tech has improved. In response, developers are eyeing “child-care deserts”—areas with little to no formal care options.
Real Estate’s Role Expands
Real estate is playing a central role in addressing this demand. While some operators own their facilities, many lease them. Larger chains like KinderCare and The Learning Experience often use net lease structures. These leases shift expenses like maintenance and property taxes to tenants.
According to B+E, the number of early education properties for sale rose 14% since late 2024. Even more notably, listings with 10 or more years remaining on their leases jumped 12% in 2025.
“This is the stuff that banks love to lend on,” said B+E CEO Camille Renshaw. “Most of the new inventory reflects developers securing tenants. These are now hitting the market and exciting investors.”
Fortec’s Big Move
Fortec, a national developer focused on early childhood centers, is taking a bold step. The firm just launched a $100M fund with financial advisory firm Equiturn. Their goal is to institutionalize the early education real estate sector.
“Many real estate investors don’t even know this sector exists,” said Fortec Chairman Pablo Barreiro. “But it’s strong. The tenants have good credit and solid financials.”
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The Supply Shortage
Right now, 14.7M US children under six need daily care. However, only 8.7M are enrolled in formal programs. That leaves a gap of 6 million children, according to US Census Bureau data.
Waitlists are long. On average, parents wait six months to enroll their child. In 13% of cases, families wait more than a year. Rising care costs have only intensified the pressure on families, often rivaling or even surpassing housing expenses in major US metros.
Barreiro noted that 51% of US regions qualify as child-care deserts. In these areas, demand is three times higher than supply.
A Sector Ready to Scale
Until recently, early childhood real estate was a local, fragmented market. Few REITs have invested in it, and those that have hold only a small number of properties. However, Fortec believes this sector is ready to grow.
Other asset classes, like senior housing and medical office buildings, followed similar paths before becoming institutional staples. Fortec is now working to create that same transformation.
Over the past five years, the firm has closed $230M in deals across 13 states. With Equiturn managing investor outreach, the new fund will expand that footprint.
Why Investors Are Interested
So far, single- and multifamily offices have shown the most interest. They point to the sector’s economic resilience and steady demand.
A recent note from Florida-based Aceana Group explained why. It said larger child-care centers can generate millions in revenue annually. Once occupancy stabilizes, double-digit margins are common.
Most operators lease on long-term, triple-net agreements with built-in rent increases. These terms shift costs to tenants and offer landlords steady, bond-like income.
Because of this, child-care real estate can serve as a hedge against inflation. That makes it especially appealing in the current environment.
What’s Next
Some institutions have already invested in the operating side of early childhood education. Now, more are exploring the real estate side as the sector becomes more defined.
Barreiro said the key is creating investment-ready products. “We need offerings that meet their return expectations and match their risk profile,” he said.
If early childhood real estate follows the path of other emerging asset classes, institutional capital will soon follow. The fundamentals are strong—and the demand isn’t going away.
