Early childhood education assets continue to attract strong investor interest in record-breaking $151m Burgess Rawson from CBRE auction

Investment in early childhood education and care (ECEC) infrastructure continues to demonstrate resilience and long-term value, with a standout childcare transaction featuring Burgess Rawson from CBRE’s final portfolio auction for 2025.

Held across three days, the national auction event delivered more than $151 million in commercial property sales across 39 transactions, making it the agency’s largest auction campaign of the year. While health and convenience retail assets dominated overall sales volumes, ECEC assets continued to perform strongly, underpinned by secure leases and robust tenant demand.

A childcare centre leased to Affinity Education Group, was sold for $4.712 million on a 5.62 per cent yield, highlighting the enduring appeal of early learning investments within a diversified commercial property portfolio.

According to Craig Chapman of Burgess Rawson from CBRE, investor appetite remains strong for essential service assets, particularly those offering stable income and long-term lease security.

“We’re seeing consistent buyer appetite for quality assets with reliable income streams, which has made this a particularly strong finish to what has been an exceptional year for the market.”

The ECEC sector has long been considered a defensive asset class, with long-term leases, national operators, and a strong alignment with government funding and policy priorities under the National Quality Framework (NQF). 

ECEC properties also provide flexibility for developers and landlords, with demand for quality, purpose-built facilities growing alongside population growth and increased participation in early childhood education. The steady expansion of government programs such as preschool funding and universal access to early learning continues to support occupancy and drive investor confidence.

The auction result caps off a record year for Burgess Rawson from CBRE, with more than $1.8 billion in commercial sales recorded in 2025. ECEC continues to play a key role in this momentum, contributing to the agency’s broader portfolio of health, education and convenience assets.

Looking ahead to 2026, early learning centres are expected to remain a core component of institutional and private investment strategies. Their alignment with community infrastructure needs and policy priorities ensures they are well positioned to weather economic fluctuations while delivering stable, long-term returns.

As the early childhood education sector continues to evolve, demand for high-quality, well-located centres is expected to grow, making them a vital part of Australia’s commercial property landscape.