Milo Spector provides insights to WMRE: In a volatile market, investors view early childhood education centers with greater interest

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SAN FRANCISCO, CALIFORNIA (December 5, 2022) - Northmarq's early childhood education expert, Milo Spector was recently featured in a Wealth Management story highlighting the increasing interest from investors. With rising interest rates, net lease assets occupied by early childhood education centers are growing in popularity. Indeed, the entire sector is doing very well, with most centers either meeting or beating pre-Covid enrollment, explained Spector.

“The pandemic really cemented how essential of a service these operators are providing,” Spector said. “It is important for children to have face-to-face interaction to develop social skills, and when you only have online learning it is impossible for a child to learn and develop to their full potential.”

Spector noted that in early 2022, his firm saw a much higher demand for early childhood facilities than ever. Investors started looking at everything they could to fulfill their 1031 exchanges, and the cap rates in this space were higher than what they could get on most retail NNN properties like dollar stores, banks and quick-serve restaurants. The strength of that demand is demonstrated by the average cap rates hitting all-time record lows, Spector added.

Other topics covered include:

• State of the market
• The industry
• Typical properties
• Who are the investors
• Cap rate breakdown

Read the full story.