In a market starved of premium childcare centre opportunities due to construction cost challenges, CBRE are poised to launch what could be a record breaking offering in Melbourne’s prestigious Hawthorn East. 

The subject property is poised to capture the attention of the countries highest quality early learning providers for a multitude of reasons. The first being it’s location, opposite the Tooronga Village Shopping Centre and on the border of Toorak and Glen Iris – new centre opportunities in these suburbs are near impossible to source. Secondly, the project is only months from completion allowing speed to market and centre establishment by operators prior to commencement of 2025 calendar year enrolments.  

The subject property was previously leased to a premium childcare provider however delays in construction completion and financial issues with the builder saw the sunset date surpassed. With a new builder now appointed and construction forecast for completion in December this year, the developer has elected to re-market the asset in-light of the notable increases in childcare daily fee rates and rentals being achieved since terms were first agreed 3 years ago (during Covid).

CBRE Australian Healthcare and Social Infrastructure team of Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat will be marketing the near complete childcare centre at 760 Toorak Road, Hawthorn East and expect an outcome to be achieved in relatively short order.

The centre is designed for 96 children over three levels and will be ready for occupation by 1 January 2025.

Sandro Peluso said “This is the only childcare centre being offered for lease of it’s type in Australia, truly one of one. The project is already well progressed through the construction timeline. With speed to market and certainty of delivery more important than ever for childcare operators this ticks all the boxes for tenants. Appeal is further enhanced by the shear quality of both the location and build quality which is evident from the moment anyone reviews the renders, scope of works and design package – this will comfortably be one of the highest quality centres in the country and we are really excited about how it will be received in the marketplace.

Unlike leasing a standard childcare centre off the plan the opportunity also allows operators a more hands on approach to centre design and fit out to truly understand the offering prior to taking on the commitment.”

Marcello Caspani-Muto added “Our team expect this to set a new benchmark for rental in the childcare sector. With rentals in the high $5,000 per place range now quickly becoming accepted as the norm for the inner east of Victoria we expect these numbers to potentially exceed $6,000 per place. These increases are simply aligning with the comparable increases in daily fee rates we are seeing providers charge in markets like Malvern, Hawthorn, Doncaster, Box Hill, Toorak and other comparable suburbs. These only seem high to people for a short period of time, but it’s easy to see how these rents are serviceable when you review potential gross income. In Sydney these rentals were accepted years ago and there a numerous rentals in Victoria that also support this.”

760 Toorak Road, Hawthorn East will feature a building area of 784sqm alongside basement parking for 21 cars and outdoor play space of just under 700sqm.

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