Daycare rent comes down to two numbers: how many square feet you need, and what space costs per square foot where you want to open. Many states ask for 35 square feet of indoor activity space per child, counting classroom floor only. Commercial rent is usually quoted per square foot per year, and the national average asking rent for shopping center space was $25.82 in the third quarter of 2026 (a preliminary figure). At $25 a square foot, each child's 35 square feet of classroom costs about $875 a year, or $73 a month, before you add hallways, bathrooms, the kitchen and the office.
This guide shows how to work out your own number, what a lease adds on top of the rent, and the building rules that decide whether a space can become a daycare at all. Figures were checked on September 26, 2026, and the rent figures were updated on October 17, 2026.
How to Calculate Daycare Rent
- Pick your licensed capacity: the most children you plan to care for at one time.
- Multiply it by your state's indoor space rule. That gives you the classroom floor you need.
- Add the rooms that do not count toward that rule: bathrooms, hallways, the kitchen, offices and storage. Measure a real floor plan instead of guessing.
- Check the outdoor space. State rules range from 45 square feet per child in Florida to 100 in Georgia.
- Multiply the building's total square feet by the yearly rent per square foot, then divide by 12 for the monthly rent.
- Add what the lease charges on top, such as property taxes, insurance, maintenance and common area charges.
Example: monthly rent for 60 children
Say you want to license 60 children in a state with a 35 square foot rule. You need 2,100 square feet of classroom floor. You find a 3,500 square foot building where 2,100 square feet counts as classroom space, and the landlord asks $25 per square foot per year:
- Yearly rent: 3,500 × $25 = $87,500
- Monthly rent: $87,500 ÷ 12 = about $7,292
- Rent per licensed child: about $1,458 a year, or about $122 a month
That per-child number is worth knowing before you sign. Every child's tuition has to cover their share of rent, plus payroll and everything else. Our daycare rate calculator shows the lowest daily rate that covers teacher pay, and you can add rent on top. In Texas, where the rule is 30 square feet, the same 60 children need 1,800 square feet of classroom floor.
Daycare Rent per Square Foot
We found no national survey of daycare rent on its own, so the market averages for the kinds of space daycares lease, such as retail and office, are the closest guide. These are the latest national average asking rents, per square foot per year:
| Space type | Average asking rent | Source |
|---|---|---|
| Shopping center retail (not malls or freestanding buildings) | $25.82 | Cushman & Wakefield, Q3 2026 (preliminary) |
| All retail | $24.79 | CBRE, Q2 2026 |
| Office (gross) | $38.65 | Cushman & Wakefield, Q3 2026 (preliminary) |
Region matters. The same Cushman & Wakefield retail report puts shopping center asking rent at $19.96 in the Midwest, $25.61 in the Northeast, $25.80 in the South and $30.43 in the West. City and building matter even more, so treat these as a starting point, not a quote.
Watch the unit on any listing. Most US commercial rent is an annual cost per square foot (CoStar glossary), but some markets quote it monthly. Los Angeles office rent, for example, was reported as $3.68 per square foot per month in the second quarter of 2026. A listing that says "$2.50 per square foot" is probably monthly, which works out to $30 a year.
To find your local number, search commercial listings for your area, ask landlords what similar spaces rent for, or talk to a commercial broker who represents tenants. Convert every quote to the same basis before you compare them: yearly or monthly, and gross or net.
How Much Space a Daycare Needs
Your state's space rule sets how many children a room can hold, which makes it the biggest driver of how much space you rent. These are the minimums for child care centers in several states:
| State | Indoor space per child | Outdoor space per child | Rule |
|---|---|---|---|
| Texas | 30 sq ft | 80 sq ft, for each child outside at one time (HHSC proposed 75 in August 2026) | 26 TAC 746.4201, 746.4301 |
| California | 35 sq ft | 75 sq ft, based on licensed capacity | 22 CCR 101238.3, 101238.2 |
| Florida | 35 sq ft | 45 sq ft, for children 1 and older | Child Care Facility Handbook (effective September 1, 2026) |
| Georgia | 35 sq ft | 100 sq ft, for each child outside at one time | 591-1-1-.19, 591-1-1-.26 |
| Illinois | 35 sq ft (ages 2 and up) | 75 sq ft, for each child outside at one time | 89 Ill. Adm. Code 407.370, 407.390 |
| New York (outside New York City) | 35 sq ft | No set number | 18 NYCRR 418-1.3 |
| North Carolina | 25 sq ft | 75 sq ft, for each child outside at one time | G.S. 110-91, 10A NCAC 09 .1402 |
| Ohio | 35 sq ft | 60 sq ft, for each child outside at one time | ORC 5104.032 |
| Pennsylvania | 40 sq ft | 65 sq ft of indoor or outdoor play space | 55 Pa. Code 3270.61, 3270.62 |
State minimums are not the whole story. Caring for Our Children, the national health and safety standards from the American Academy of Pediatrics, the American Public Health Association and the National Resource Center for Health and Safety in Child Care, recommends at least 42 square feet of usable floor space per child and prefers 50 (standard 5.1.2.1). It measures that space without walkways or furniture, which is stricter than most state rules. It calls 35 square feet the historical figure. Outdoors, it recommends 75 square feet for each child on the playground at one time (standard 6.1.0.1). A space that just meets your state's minimum can feel crowded, and a little extra room gives you space to grow.
Most of these rules leave out hallways, kitchens, offices and storage, and usually bathrooms (Ohio counts bathrooms that only children use). Texas also leaves out floor under built-in shelving and counters (26 TAC 746.4213). So a listing's total square feet does not tell you how many children it can hold. Before you sign, sketch the classrooms and count only the floor children can use.
If the space was already a daycare, do not assume its old capacity carries over. Several states let centers licensed years ago keep older, smaller space rules. Ask your licensing office which rule applies to a new license in that building.
Lease Types and What You Pay Besides Rent
The asking rent is rarely the full monthly bill. What else you pay depends on the lease type. The University of La Verne Small Business Development Center defines the common ones this way:
| Lease type | What you pay |
|---|---|
| Gross | One fixed rent. The landlord pays all or most operating expenses, such as property taxes, insurance and maintenance. |
| Modified gross | Base rent plus a negotiated share of the operating expenses. |
| Triple net (NNN) | Base rent plus property taxes, insurance and maintenance costs. |
Two more lines often show up in shopping centers and office parks:
- Common area maintenance (CAM): your share of the cost of shared spaces, usually set by the share of the building's square footage you rent (J.P. Morgan).
- Tenant improvement allowance: money the landlord agrees to put toward your build-out, usually stated per square foot (Cushman & Wakefield).
For a daycare, three lease terms matter more than the rent itself. First, a licensing contingency, so you can walk away if the space cannot be licensed or pass its fire inspection. Second, a tenant improvement allowance, because bathrooms, sinks, exits and fencing add up fast. Third, a term long enough to earn back the build-out, with renewal options. Leaving a lease early can mean steep penalties, and the SBA suggests having an attorney review a lease before you sign it.
Build-Out: What Makes a Space Legal for Child Care
A space can be the right size and still cost a fortune to turn into a daycare. Three sets of rules decide that: zoning, the building code and your licensing standards.
Zoning and change of use
The SBA warns that zoning can restrict or ban some kinds of businesses in an area, and that you should check with your city planning office before you rent. If the space was an office or a store, the city may also treat child care as a change of use. The City of Austin, for example, requires a Change of Use application when a building's certificate of occupancy does not already list child care, and fire inspections come after the updated certificate (Austin Development Services). Portland calls an office turning into a child care center a change of occupancy that needs a permit even when no construction is planned (Portland Permitting).
Building code and sprinklers
Many cities base their building rules on the International Building Code (IBC). It sorts daycares into two groups:
- Group E: care for more than five children older than 2½ (section 305.2).
- Group I-4: custodial care for more than five people of any age, which covers infant and toddler rooms (section 308.5). There is one exception: up to 100 children aged 2½ or younger count as Group E if their rooms are on the level of exit discharge and each room has an exit door directly outside (308.5.1).
The group matters because of sprinklers (IBC section 903.2). A Group I building needs automatic sprinklers throughout. The exception is an I-4 day care on the level of exit discharge where every care room has at least one exterior exit door. A Group E fire area needs sprinklers once it is larger than 12,000 square feet, sits on a floor other than the level of exit discharge, or holds 300 or more people. In practice, a one-story center under 12,000 square feet and 300 people, where every infant and toddler room has its own outside door, can often avoid a sprinkler requirement under the model code. Your city may use an older or newer edition than 2021, with its own changes, so confirm with the building department before you sign.
Licensing rules that shape the build-out
Your state's licensing standards add fixtures and doors. Texas is a good example (HHSC minimum standards for centers):
- One flush toilet and one sink for every 17 children 18 months and older, all inside the center
- A handwashing sink in each diaper-changing area
- At least two exits to the outside, in distant parts of each building
- Emergency lighting in each classroom and a working smoke detection system
- A fence or wall at least four feet high around the outdoor play area (unless only children 5 and older use it), with at least two exits, one of them away from the building
Texas licensing accepts fire extinguishers instead of sprinklers, but the building code can still require them. Walk the space with a contractor and your fire marshal before you sign. For the full Texas process, see our guide to opening a daycare in Texas.
Renting Space in a Church or School
A church or school building may already have classrooms, child-size bathrooms and a playground, which can cut your build-out. It also brings a shared-space agreement, so settle these points in writing:
- How rent is set: a flat monthly amount or a price per square foot
- Your share of utilities, cleaning and repairs
- Which rooms are yours, on which days, and who sets up and resets rooms the congregation uses on weekends
- Playground, parking and drop-off use
- Whose insurance covers what
- Storage and signs
Weekday child care for more than five children in a church is its own occupancy under the building code. Care offered only while parents attend services is not (IBC 305.2.1). So the church's building may need the same change-of-use review as any other space. Ask your licensing office how it inspects rooms the church also uses.
Renting a House for a Home Daycare
Texas rules require a home daycare to be in the caregiver's own residence (26 TAC 747.113 and 747.115). They say residence, not a home you own. Before you sign a lease or start:
- Check that the lease allows a business, and get the landlord's OK in writing.
- Read any HOA rules. In Texas, a 2025 law stops a city from making the owner or tenant rezone a house to run a home-based business, but it does not override deed restrictions (Local Government Code 229.902).
- Ask your city what it requires at your number of children. The IBC treats care for five or fewer children in a home as a residential use (305.2.3). Above that, the model code would treat it as a day care occupancy, and your state or city may change that rule for licensed homes.
A center in a converted house is a different case. It is a non-residential use, so expect the zoning, change of use and building code steps above. For home daycare budgets, see in-home daycare costs.
Other Costs to Budget Beyond Rent
Rent is one line. These are the others to price before you commit to a space:
- Licensing: state fees vary. In Texas, a center pays $35 to apply, $35 for its initial license, and $35 plus $1 per licensed child for the full license and each year after (Texas guide).
- Liability insurance: some states set a minimum. Texas law sets $100,000 per occurrence, and an operator who cannot get coverage must tell parents in writing instead (Human Resources Code 42.049). For costs and companies, see our home daycare insurance guide.
- Payroll: in May 2025, the median pay was $34,980 a year ($16.82 an hour) for childcare workers, $38,140 for preschool teachers and $59,300 for preschool and daycare directors (BLS). On top of wages, employers pay 6.2% for Social Security and 1.45% for Medicare, plus federal unemployment tax of 6.0% on the first $7,000 of each employee's pay, which drops to 0.6% with the full credit for state unemployment tax you pay (IRS Publication 15). Budget for your state's unemployment tax too.
- Equipment: furniture, cribs, cots, kitchen and outdoor gear. See the daycare equipment list.
- Software: sign-in, billing and parent messages. See our list of childcare management apps.
- Franchise fees, if you buy a franchise: the franchisor's Franchise Disclosure Document lists the initial fee (Item 5), ongoing fees such as royalties and ad funds (Item 6), and the estimated initial investment, including leased property and deposits (Item 7). You must receive it at least 14 days before you sign or pay (FTC). Our daycare franchise guide compares seven brands.
Keep a cash cushion. Federal franchise rules make franchisors estimate the extra money a new owner needs for an initial period, which the rule puts at least three months or a period reasonable for the industry (16 CFR 436.5). Plan for at least three months of rent and payroll before enrollment fills, franchise or not. If money is tight, read how to start a daycare with no money.
Daycare Rent FAQ
Q:How much does it cost to rent a daycare center?
Multiply the building's square feet by the local rent per square foot per year. National average asking rent for retail space was about $25 a square foot a year in mid-2026, so a 3,500 square foot building at that rate costs about $87,500 a year, or $7,292 a month, before taxes, insurance and maintenance on a net lease. Local rents can be far higher or lower.
Q:How much space do I need to rent for a daycare?
Start with your state's indoor rule, often 35 square feet of classroom floor per child (30 in Texas, 25 in North Carolina, 40 in Pennsylvania). Then add bathrooms, hallways, the kitchen, offices and storage, which do not count. Among the states in the table above, outdoor rules run from 45 to 100 square feet per child, and some set lower figures for infants or no number at all.
Q:Is commercial rent quoted per month or per year?
Usually per square foot per year. Some markets, such as Los Angeles, quote it per month, so a figure like $2.50 a square foot is probably monthly ($30 a year). Ask the landlord or broker which one a listing uses.
Q:What is a triple net lease?
A lease where you pay base rent plus the building's property taxes, insurance and maintenance. Add those costs to the base rent before you compare it with a gross lease.
Q:What do you pay for when renting church space for a daycare?
It depends on the agreement. Settle rent, your share of utilities, cleaning and repairs, which rooms and days are yours, playground and parking use, and insurance in writing before you sign. The space still has to meet your state's licensing rules and, for more than five children, your city's building code for weekday child care.
Q:Can I rent a house for a home daycare?
Yes, if the lease allows it. Get the landlord's written OK, check HOA rules, and ask your city what it requires for your number of children. Texas rules require the home to be your own residence, which means you live in the house you rent.
Q:How much does a daycare license cost in Texas?
A licensed center or licensed home pays $35 to apply, $35 for the initial license ($35 more if it is renewed), and $35 plus $1 per licensed child for the full license and each year after. A registered home pays $35 to apply and $35 a year, and a listed home $20 to apply and $20 a year. Background checks cost $2 each, plus $37 for a paid employee's fingerprints.