Childcare centre demand spurs news Melbourne lease commitments

Six new childcare centres have been leased in Victoria as operators continue to hunt for well-located Melbourne sites.

Birches Early Learning, Gumboots Early Learning, Guardian Childcare & Education, Kool Kidz and two private operators have all committed to new locations in deals negotiated by Marcello Caspani-Muto, Sandro Peluso and Jimmy Tat of CBRE’s Australian Healthcare & Social Infrastructure team.

“These leasing deals illustrate the demand for quality childcare facilities and the importance of strategic location, design, and collaboration between developers and operators,” Mr Peluso said.

“Well-located sites and intelligent design continue to attract interest from various operators, highlighting the robustness of the childcare market while the long-term lease agreements reflect the potential for childcare development in the area.”

In one of the latest deals, Birches Early Learning committed to a 15-year lease over a new facility at 57 McCormick’s Road, Carrum Downs.

Mr Caspani-Muto said the centre has originally been leased off the plan to another operator. When that deal fell through, it was snapped up Birches Early Learning, resulting in an improved outcome for the developer at a a rate per place of $3,600.

In another significant transaction, Gumboots Early Learning has leased a proposed childcare centre at 183-185 Melbourne Road Williamstown following a competitive Expressions of Interest campaign.

Mr Peluso said the centre’s prime location in a well-established residential area had underpinned strong occupier interest. Gumboots Early Learning has committed to a 15-year initial lease term, with the option to extend for an additional 10 years, at a rate per place of $5,416.

In the next test of market demand, the team is marketing a new Footscraycentre at 102-104 Gordon Street.

Mr Peluso said the property’s highly desirable inner-city location was expected to underpin interest from multiple operators.

“With 118 long day care places, the property represents one of the highest quality new offerings in a catchment with rising childcare demand,” Mr Peluso noted.