Children learning in an early childhood education centerFrom medical centers and chain soda shops to convenience stores and early childhood education centers, there is a great deal of variety in the types of properties in the Millcreek Commercial portfolio. The diversity may seem broad, however, Millcreek Commercial puts much thought into the selection of each property prior to purchasing it and presenting it to potential investors.

 Among the variety of properties within the Millcreek Commercial portfolio are education centers. Over the years, Millcreek Commercial has acquired several education centers as part of its portfolio, namely the Liahona Academy and a couple of early childhood education properties known as The Learning Experience.

As time has passed, we have increasingly loved the addition of early childhood education centers to the Millcreek Commercial portfolio. On top of portfolio diversity, the following are two reasons why we love early childhood education centers and think each will prove to be a successful investment to our investors. 

A Federal Look Forward

Successfully navigating the commercial real estate market can come by understanding the impact of governmental influence. The Biden Administration’s American Families Plan outlines several ways in which it will impact education–specifically early childhood education. The plan seeks to create accessibility to more education–seeking to educate youth past the standard 13 years–by adding “at least four years of free education.” The outline explains, “The American Families Plan will make transformational investments from early childhood to post-secondary education so that all children and young people are able to grow, learn, and gain the skills they need to succeed. It will provide universal, high-quality preschool to all three- and four-year-olds.

Knowing the possibility of potential governmental influence on early childhood education gives insight into the positive effects it can have on commercial investments in early childhood education properties. If the US government decides to move forward with these aspects of their outlined plan, there would be a great need for high-quality early childhood education centers to accommodate the influx that would follow changes in the standards of education.   

Growth in the Early Childhood Education Sector

Millcreek Commercial is always looking to add properties that fall under the category of “recession resilience”. Part of doing this is looking at marketing trends to understand how different types of commercial properties are going to perform in the coming years. For example, considering early childhood education, a recent study by Facts and Factors highlights pivotal information about the growth of the early childhood education market:

“According to the research study, the global Early Childhood Education Market was estimated at USD 245 Billion in 2019 and is expected to reach USD 480 Billion by 2026. The global Early Childhood Education Market is expected to grow at a compound annual growth rate (CAGR) of 10.5% from 2019 to 2027.”

From this example and other relevant samples of market research, investors can glean insight into the growth trajectory of the early childhood education market, which shows an optimistic future of being a “recession resilient product”. The knowledge that studies are showing an increase in the early childhood education market can play an important role in the commercial real estate decision-making process as investors consider potential investment properties.

In Our Inventory

As of December 2020, The Learning Experience® has more than 480 academies of early education, including 278 currently open and operating. The Company is scheduled to open 50+ locations by the end of 2021, and additionally has more than 200 locations in development.

Why we love the brand: We believe that maintaining our reputation for the highest standards of quality requires the highly concentrated development strategy known as center-clustering. This growth model will permit the building of brand recognition by concentrating our marketing dollars directly within each core market – all while allowing our centers to share staff and marketing costs. This helps increase margins without loss of quality.

To get more information about The Learning Experience or other properties we have in our portfolio, check out our available properties.

 

*This article is fully opinion and should not be considered investment advice. For investment advice, please contact your financial advisor.