The latest example is a purpose-built childcare centre at 383 High Street in Melbourne's northern suburb of Lalor, which is being offered to the market with a long-term lease and annual rental growth built into the income stream.
The asset, completed in 2024, sits on a prominent 1,864 sqm* corner site and is leased to childcare operator Me for Kids Lalor Early Learning Centre. The property generates annual net income of more than $400,000 and is secured by a 10-year lease with options extending occupation through to 2054.
For sale through Jack Cooper and Angus Parnham of Cushman & Wakefield, the offering comes as investors continue to seek defensive real estate sectors underpinned by essential community services and demographic growth.
While childcare investments have become a recognised asset class in their own right, agents say opportunities to acquire newly developed centres with long leases remain relatively limited.
Cushman & Wakefield's Jack Cooper said investors were increasingly focused on locations where population growth and childcare demand were materially outpacing available supply.
"Childcare remains one of the most sought-after alternatives sectors because it combines long-term income security with strong demographic fundamentals.
"What makes Lalor particularly compelling is the depth of family demand. The suburb has one of the stronger childcare undersupply profiles in metropolitan Melbourne, which provides confidence in the long-term viability of the operator and the asset."
Research indicates Lalor has an estimated 4.49 resident children aged between zero and four years for every approved long day care place, significantly higher than the Greater Melbourne average.
The centre is also positioned within an established residential catchment, close to schools, public transport and shopping amenities, factors investors increasingly assess when evaluating operational resilience.
Cushman & Wakefield's Angus Parnham said investors were becoming more selective as yield compression moderated across parts of the childcare sector.
"Investors are closely examining the quality of the operator, the strength of the catchment and the longevity of the income stream.
"This asset performs strongly across all three measures. It is a modern facility, supported by a proven tenant and located within a growth corridor where family formation continues to drive demand for childcare services" he said.
383 High Street, Lalor is offered for sale via an International Expressions of Interest campaign closing on 3 December 2026.
