Those in the preschool, childcare, and daycare business are fully aware of the cost savings involved with taking over a space that has already been occupied by a similar facility. To start a new facility is almost impossible. To give those not in the business an idea of the hurdles involved it goes far beyond “hard” construction costs. Due to our limited land and tight zoning, there are very few commercial buildings able to accommodate a large amount of children and still have an outdoor area large enough to meet the requirements. For each child there is a certain amount of outdoor play area and without that outdoor area a facility cannot get licensed. Thus, a second generation preschool, childcare, or daycare is one of the most expensive facilities to lease in commercial real estate (next to restaurants and medical space).
Today I will highlight a space that has just come on to the market in Pleasanton. The 7,000 square foot building with an extensive outdoor play area has an asking rent of $2.65 per square foot, plus the triple net expenses. This no doubt would be a high-water mark for a fully equipped as a preschool, childcare, or daycare facility.
You might remember Prim Rose took over the facility Koll Center Parkway late 2012. The building had multiple offers and was rumored to go above asking rate which was $2.25 per square foot, plus the triple net expenses of just $0.25 per square foot. In terms of size, location, and quality the facilities are very similar.
Want more info or looking for a facility to house preschool? Contact Jessica firstname.lastname@example.org or 925.737.4168