Issue link: https://nebusinessmedia.uberflip.com/i/1522802
HARTFORDBUSINESS.COM | JUNE 24, 2024 9 Conversion Projects in 2024: e Childcare Demand S uccessful 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. e 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. e Goddard School of South Windsor, CT, and e 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, e 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. e community welcomed the school, and its convenient location has proven to be an excellent choice. e planning for Goddard School started when early childhood education and daycare services became desperately needed in CT. e 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. e 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. e school is 12,000+ square feet, featuring a large gymnasium, classrooms, and care spaces. e 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. e 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. e property differs significantly from e 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. is 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 ese two projects are distinct, yet both are excellent examples of development that serves market demand. ey 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. e 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 e Goddard School, e Gardner School, e 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. e 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. e 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 FortunatoConstruction.com SPONSORED CONTENT