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Sponsored by: Fortunato Construction
June 17, 2024

Conversion Projects in 2024: The Childcare Demand

Successful commercial real estate (CRE) in 2024 is a smaller, smarter retail that creates community engagement. Neighborhood and community shopping centers offering a wide range of services and convenience closer to home attract consumers and thrive.

The shifts in market trends over the last five years have created new challenges for CRE stock. In the Hartford metro area, the average office vacancy rate in 2024 is 22.9% and retail is around 12%. While office vacancies present new conversion opportunities, retail vacancies can adapt to offer a broader range of services and convenience than might have been previously considered.

Fortunato has realized two conversion projects in two different retail settings that created early childhood education spaces. The Goddard School of South Windsor, CT, and The Gardner School in Braintree, MA both reactivated underutilized retail space with careful planning, creativity, and the right construction partner.

The Goddard School of South Windsor

From Pizzas to Playgrounds In the Fall of 2023, The Goddard School of South Windsor, CT opened in Evergreen Walk turning an underutilized corner of the lifestyle center into an activated space for childhood enrichment. The community welcomed the school, and its convenient location has proven to be an excellent choice.

The planning for Goddard School started when early childhood education and daycare services became desperately needed in CT. The creation of an early childhood development school in South Windsor was an idea that was well-received and highly supported by the town, the state, and the community.

To realize this, owners Lauren and Quinten Smallwood turned to Fortunato Construction Group to re-envision a former pizza kitchen and restaurant into space for children to learn and play. The school opened in the fall of 2023 and has been a bustling center for childhood engagement since, just celebrating its first anniversary. Where once stood pizza ovens is now an outdoor playscape where Goddard students can safely run around. The school is 12,000+ square feet, featuring a large gymnasium, classrooms, and care spaces.

The Goddard School’s success at Evergreen Walk reflects the current commercial and retail space shift toward neighborhood center concepts. Within walking distance of the school, families have various shopping and services. The options include visiting the new Whole Foods location, a session at Golf Lounge, a stop at Leaps & Bones Dog Bakery, or a little self-care at Massage Envy.

The Gardner School of Braintree

Marine Gear to Make-Believe

In Braintree, MA, a former West Marine store is undergoing a similar transformation from a dilapidated utilitarian retail and warehouse space into a welcoming childcare facility.

Here, Fortunato Construction Group is working with the client to create a safe, comfortable, and inviting early childhood education environment by Fall 2024.

The property differs significantly from The Goddard School in South Windsor. Rather than set within a lifestyle center, the new Gardner School in Braintree is tucked away on a side road adjacent to Interstate 93. Its location allows an easy on/off the highway and while set on its own, it is close to shopping and restaurants.

A welcoming light-filled lobby will provide security for the students’ arrivals and departures. Learning and care spaces will include age-specific areas for children at different developmental stages. This two-story school will be fully stocked with functional spaces including an industrial kitchen, laundry room, and a staff workroom and lounge.

Enrichment areas include a STEAM (science, tech, engineering, arts, and math) lab and an indoor free-play area. Outside a protected playground, ample parking, and landscaping will revitalize the property. In total, the facility will provide 20,000+ square feet of early childhood development space and much-needed childcare services.

Innovative Retail Conversions

These two projects are distinct, yet both are excellent examples of development that serves market demand. They show how a change in tenants can yield strong rent stability and contribute to the community. Early childhood education services have been in high demand for years with shortages in many states. The childcare market is projected to boom over the next decade and is expected to grow from $59 billion to $88 billion by 2033*.

Fortunato has been a preferred construction manager for the development of The Goddard School, The Gardner School, The Learning Center, and KinderCare locations throughout the Northeast. From this vantage, our team has gained insight into shifts in the CRE market and how innovative partnerships can create profitable endeavors. The conversion strategies from a pizza kitchen or retail and warehouse into early childhood education centers align with current market trends and consumer demand.

Looking forward, Fortunato Construction Group is continuing to work with developers and tenants to find innovative solutions to reinvigorate existing properties. The challenges brought on to the CRE market in recent years are yielding new opportunities for emerging and growing markets, such as childcare. Our team takes great pride in the transformative renovations we’ve accomplished to date and looks forward to partnering on exciting new projects throughout the Northeast.

*Towards Healthcare Insights