Tarneit childcare centre leased on new long-term deal

A Victorian childcare operator, with more than 10 centres across the state, has secured a new long-term lease at a 120-place centre in Melbourne’s west.

Located at 28-34 Marengo Street in Tarneit, the 10-year-old centre was leased for $468,000 per year reflecting a 10% rental uplift from the previous tenant who vacated in 2025.

The lease was negotiated by CBRE’s Jimmy Tat and Sandro Peluso.

Commenting on the deal Mr Tat said, “Operator demand is increasingly focused on immediate in market opportunities, rather than off the plan centres. CBRE’s deep market expertise and active tenant database enable swift execution and consistent strong results.”

Mr Peluso added, “There is no question the market is becoming increasingly challenging for all sectors, childcare is no exception, however the strong providers with between two and 10 centres seem to be thriving in this high competition and lower demand market. These tenants want immediate growth opportunities and see the best path as taking existing centres rather than waiting multiple years for new construction.”