Childcare centre investments · Melbourne
$360,000 a year from one childcare tenant.
That is year-one rent at our Reservoir centre, with fixed 3% rises every year and the tenant paying the outgoings. Below: how a childcare lease works, the numbers, and the risks.
The basics
What you own, and who pays you
You buy the land and the building. A licensed childcare operator leases it, runs the centre and pays you rent, usually on a first term of 15 years or more with options to renew.
On a net lease the operator also pays the outgoings: council rates, water, insurance and land tax. Families pay the operator, and the Child Care Subsidy covers about two-thirds of an operator’s revenue (CBRE, March 2026).
Since 5 January 2026, every family eligible for the subsidy can get at least three days of subsidised care a week, so more families can afford a place.
Three things decide your income
- Rent per place. Rent divided by licensed places. The lower it is, the easier it is for the operator to keep paying.
- The lease. Years left, how the rent rises, and who holds the options.
- The operator. How many centres they run, how full they are, and their quality ratings.
The worked example
Reservoir: 88 places, leased to Whiz Kidz
One of our current listings. Whiz Kidz is a family-owned operator with centres in Victoria and New South Wales. Lease terms are as listed in October 2026.
$360,000
rent in year one, plus GST. The tenant pays all the outgoings.
3% a year
fixed rent rises, every year of the first term.
To 2061
a 14.9-year first term, then two 10-year options for the tenant.
Watch the rent grow, year by year
Rent each lease year, first term
Tap a year or drag the slider
Year 1Year 8Year 15
Lease year 1
$360,000
rent that year, plus GST
Rent per place$4,091
Collected by year end$360,000
$
Type a price to see the yield on it in year 1 and in the year you pick.
Rent as listed: $360,000 in year 1, rising a fixed 3% each year, 88 places. The first term is 14.9 years, so year 15 counts as 0.9 of a year in the total. The tenant pays the outgoings. Two 10-year options follow at the tenant's choice, and their rent is set by the lease.
Rent per place. $360,000 across 88 places is about $4,090 a place. CBRE puts metro childcare rents at about $4,500 a place (March 2026), so this rent sits below the benchmark.
Want the Reservoir memorandum? It has the price, the lease and the operator’s details.
Side by side
A commercial unit vs a leased childcare centre
Both are commercial property. The difference is the lease and who pays the rent. Here is our Mornington listing next to Reservoir.
| Feature | Commercial unit Our Mornington listing | Leased childcare centre Our Reservoir listing |
|---|---|---|
| What you buy | A vacant unit, still being built. Mornington: from $1,195,000 for 209 to 211 m². | A centre with an operator on the lease. Reservoir: Whiz Kidz, 88 places. |
| Lease length | Commonly 3 to 5 years, plus options | 15 years or more, plus options. Reservoir: 14.9 years, then 10 + 10. |
| Rent rises | Fixed or CPI each year, then a market review when an option starts | Fixed 3% a year through the first term on our leased centres |
| Outgoings | Negotiated. On a Victorian retail lease, land tax can’t be passed to the tenant. | The operator pays them all, land tax included, on Reservoir’s net lease |
| Who pays you | A business, from its own trading | An operator, with about two-thirds of its revenue from the Child Care Subsidy |
| If the tenant leaves | Many kinds of business can use a flexible space | Only another childcare operator can use it, so re-leasing can take longer |
| Will the tenant stay? | A business can move when its lease ends | Moving means a new service approval from the regulator, so operators tend to stay |
| Typical yield | Melbourne industrial averages about 4.2% gross (June 2026) | Childcare usually sells at about 4% to 6% (March 2026) |
Our listings
Childcare centres for sale in Melbourne
Every childcare listing we have, with rent and lease as published. Prices are in each information memorandum.
·Leased centres
·Development sites
·Licensed or planned places
·Average rent per place on our leased centres. CBRE's metro benchmark is about $4,500.
Leased centreDevelopment siteUnder offerSold
Loading our childcare listings. If nothing shows up, see every childcare listing here.
Rent, places and lease terms are as published on each listing. Rent is before GST, and on a net lease the tenant also pays the outgoings. Prices are in each information memorandum, available from Mark.
Inside one
What a leased centre looks like
Our Lalor listing: 108 places on High Street, leased to Me For Kids on a 10 + 10 + 10 year lease.
Straight talk
The real risk is a centre the operator can’t fill
Your rent comes from the operator, and the operator needs enrolments. Families have more choice than they did a few years ago.
0.46
childcare places for every child under six in Victoria, close to the national average of 0.47.
CBRE, March 2026
30,000
new places a year added nationally in 2024 and 2025. CBRE puts yearly growth in demand at about 11,000.
CBRE, March 2026
56.4%
occupancy across ASX-listed G8 Education’s centres in April 2026, about 7 points lower than a year earlier.
G8 Education trading update, 29 April 2026
So we look for leases that hold up
Long leases, fixed rises and a rent per place below the benchmark all help. Whoever you buy from, get these answers in writing.
- How many centres does the operator run, and how full are they?
- What is the centre’s quality rating and compliance record?
- How many places per child are in the catchment already?
- What security backs the lease, such as a bank guarantee?
- Who pays the outgoings, land tax and structural repairs?
How it works with ZRE
From first call to rent in your account
01
Start with a call
Mark checks your budget, finance and how you plan to buy. If childcare doesn’t suit you, he will say so.
02
Read the memorandum
Price, rent, lease, operator and outgoings, in writing, for each centre you like.
03
Finance and checks
Use a broker who lends on commercial property. Your solicitor reviews the lease and its guarantees.
04
Exchange and settle
On a leased centre, the lease and the rent pass to you at settlement.
05
Collect the rent
The operator pays the rent and the outgoings, and the rent rises each year as the lease sets out.
What return does a childcare centre give?
Childcare centres usually sell at yields of about 4% to 6%, depending on the location, the lease and the operator (CBRE, March 2026). Our listings publish the rent and the lease, and Mark shares the price in each information memorandum.
Who pays the outgoings?
On a net lease like Reservoir’s, the operator pays all the outgoings, including council rates, water, insurance and land tax. Leases differ, so check each one.
What happens if the operator leaves?
The rent stops unless a bank guarantee or personal guarantee covers it, and a childcare building suits fewer tenants than a house. That is why the operator and the rent per place matter so much.
Can I buy a childcare centre through my SMSF?
It can work. The ban on new SMSF loans from 10 August 2026 covers residential property. An SMSF can still borrow to buy commercial property used wholly in a business, such as a leased childcare centre. Get advice from your SMSF specialist before you sign.
How does the Child Care Subsidy affect my rent?
You don’t receive it. It helps families pay their fees, which helps the operator fill places and pay rent. Since 5 January 2026, every eligible family can get at least three days of subsidised care a week.
What changed with childcare safety rules?
Victoria’s new regulator, VECRA, started on 1 January 2026, and the federal government can now stop subsidy payments to providers that fail safety standards. Check the operator’s quality rating and compliance record before you buy.
Can I buy a site and build my own centre?
Yes. Our Mernda listing is a 2,226 m² site with plans and a permit for 107 places and no tenant yet, so you choose the operator. Mark can walk you through how it compares with buying a leased centre.
Ask Mark for the Reservoir memorandum.
It has the price, the lease and the operator’s details, and Mark will walk you through it on the phone.
Prefer to read first? Download our free investor guides.
Talk to Mark
Talk to Mark about childcare centres
Leave your details and Mark will call you back. Tell him your budget and how you plan to buy, and he will send the memorandum for any centre that fits.
Mark Zammit
Zammit Real Estate, Fitzroy
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General information only, not financial, tax or legal advice. Rent, places and lease terms are from ZRE listings, October 2026. The rent schedule assumes the listed 3% rises and no change to the lease. Sources: CBRE Child Care Centres report (March 2026); Department of Education, 3 Day Guarantee; G8 Education trading update (29 April 2026); Victorian Government and VECRA (2026); realcommercial.com.au Commercial Yield Report (June 2026); Treasury Laws Amendment (Tax Reform No. 1) Act 2026, as summarised by Pitcher Partners.
