Daycare Centers: an investment in the future
With labor force participation of both parents nearing 70%, childcare continues to be in high demand. Daycare centers are a popular choice as they offer opportunities for growth, learning, and development as parents work to support their families.
“Daycare centers are a very lucrative business if operated correctly,” states Bo Mangam of Landmark Commercial Realty, Inc. “There is a tremendous amount of government assistance for different programs in this industry.”
Mangam is Landmark’s resident childcare property specialist working closely with the Department of Human Services that overlooks daycare licensing, requirements and changing policies. In the nearly two decades she has been a commercial real estate agent, she has been a part of over 30 daycare center transactions.
“Right now, we are finishing a new and one of the most beautiful daycare centers on the West Shore, with a convenient location,” remarks Mangam. “Tiny Fingers Tiny Toes Child Daycare/Early Learning Center at 405 St. Johns Church Road in Camp Hill will be the third center for these owners with two centers reaching full capacity. I advised both the landlord and owners of the center to invest in this location.”
With the childcare industry booming from both an employment and revenue growth standpoint, entrepreneurs and business owners are looking to invest.
Childcare property locations ideal for growth
Mangam says prospective childcare property investors should focus on finding sites that would be ideal for growth.
Close to major highways
Having a location that is near major roadways or highways allows a convenient drop-off and pick up for parents.
Know your demographics and costs
If you are looking to open a childcare center, make sure you conduct a needs assessment. If you find a property that works but is in the middle of a rural area, you may need to keep searching. Also, it is essential to determine the cost of transitioning any building into a daycare center and who is paying for renovations. It can be very costly, especially adding sprinkler systems which is a requirement for most new facilities.
Available land for playgrounds
Children need to get outside and be kids. Ample room for a playground (or two) is a requirement for a successful daycare center.
Nearby Public Transportation
Daycare centers require many employees, so it is always convenient if a center is in a walking distance to public transportation. Having a center located near a bus stop or train station can be an advantage if the opportunity exists.
How can Landmark help?
Currently, Mangam concentrates a lot of her time and efforts working with operators that have been in business for a while and are looking to open another facility, but she is always eager and willing to help those that want to enter the industry.
Mangam feels that a great location, a detailed business plan, and a skilled, well-trained staff are the foundations of a successful daycare center.
“Daycares are an investment in the future – our children’s future,” adds Mangam.