Understanding the Types of Transactions We Work On
At The OFF MKT, our goal is to create clarity and consistency in how childcare property and business transactions are handled. The childcare real estate market is complex, with operators leasing space, owning property, or operating both a business and the underlying real estate. Deals often fall apart due to unclear structure or mismatched expectations. This platform was built to standardize how these transactions occur and make the process transparent for everyone involved. While we aim to facilitate opportunities, we always operate within clear and ethical boundaries.
Tenant Operated Centers (Business Only Sales)
For operators leasing their location, we can facilitate the sale of the business based on its value as an ongoing operation. In these cases, the transfer occurs through either a sublease or an assignment of the existing lease.
However, we can only proceed with this type of transaction if the landlord is willing to participate and provide reasonable consent. If the landlord is unwilling, we cannot include them in a transaction or negotiate on their behalf. Our role is to create a structured, transparent process, not to force deals that lack cooperation or control.
Because lease terms directly impact business value, we adjust valuation based on the strength of the lease.
Businesses with longer remaining terms, fair renewal options, and predictable rent structures typically retain stronger value.
Businesses with short remaining terms, limited options, or escalating rent will see discounted valuations because the next operator inherits higher uncertainty.
A strong lease translates to a stronger business valuation. A weak lease lowers value and may limit the types of buyers who can realistically pursue the opportunity.
Combined Business and Real Estate Sales
When both the childcare business and the underlying real estate are included in a transaction, the structure is more straightforward. These are traditional real estate sales combined with the transfer of an operating business. Because the operator controls the property, there are fewer variables and the value can be analyzed based on both cash flow and comparable market sales.
This type of transaction typically attracts owner users, local investors, and sometimes institutional buyers who are active in the early education sector.
Sale Leasebacks and Vacant Space Listings
We also market opportunities that involve real estate only.
These include:
Sale leasebacks for existing operators who want to unlock equity by selling the real estate and leasing it back on long term terms.
Direct leases of vacant or newly built spaces for operators who want to expand into a location that is not currently occupied.
In both cases, we require a listing agreement in place before marketing the property. Once engaged, we can promote these spaces through The OFF MKT’s discrete operator network and structure the transaction in a way that aligns with childcare licensing and long term operational stability.
Setting Clear Boundaries
The OFF MKT is designed to bring structure and predictability to childcare transactions, not speculation. We cannot promise to work with any party we do not formally represent. We cannot promise extensions or new lease terms from landlords who are unwilling to cooperate. And we do not pursue transactions that are not structurally viable.
Our goal is to ensure that every deal is properly designed, realistic, and positioned to close. By aligning expectations and focusing on transactions that make sense for all parties, we are improving efficiency across the childcare real estate market.
Next Steps for Operators
If you are considering selling, transitioning, expanding, exploring a sale leaseback, or securing a new space, we encourage you to register through The OFF MKT.
Registration provides confidential access to statewide mapping, verified requirements, private listings once they launch, and new research and transaction data as we continue to publish it.
You can register here:
www.theoffmkt.com