New lease secured at well-established Bayside childcare centre

A childcare centre in Melbourne's Bayside region has been leased, with the deal reflecting one of the strongest rental outcomes recorded for an established facility in the area.

The centre, which is more than 30 years old, was leased to Bayside Early Learning, a respected operator known for high‑quality education programs and strong community engagement.

The lease for 37 Blackwood Avenue in Mentone was negotiated by CBRE’s Australian Healthcare & Social Infrastructure team of Sandro Peluso, Jimmy Tat and Marcello Caspani-Muto.

Mr Peluso said the deal delivered a substantial uplift for the landlord, increasing the rental from $2,750 per place to $4,000 per place, representing a major enhancement in asset performance and long‑term income security.

“This result highlights the depth of demand for quality childcare opportunities in established metropolitan catchments. Even with a 30‑year‑old building, operator confidence in the location allowed us to deliver an exceptional rental uplift and secure a premium tenant.

“The best suited tenant was always going to be someone hands on and with local experience for the landlord. They were moving away from a recently complete lease to a national provider who was terrific but had stopped performing to strong levels at the centre,” Mr Peluso added.

Mr Tat added, “Achieving $4,000 per place in a legacy facility underscores the strength of the underlying land, the scarcity of well‑located centres, and the continued resilience of the sector. The rental escalation from $2,750 to $4,000 per place is a testament to both the landlord’s long‑term vision and the operator’s commitment to the precinct.”