The Crexi Commercial Real Estate Podcast | CRE Insights & Strategies
Pablo Barreiro: Building Preschools and Solving the Childcare Desert Crisis
Why It Matters
Access to affordable, high‑quality childcare is a critical economic driver, enabling parents to work and supporting early child development, yet many U.S. regions lack sufficient facilities. By showcasing a scalable, impact‑focused real‑estate model, the episode offers developers, investors, and policymakers a blueprint for addressing this systemic shortage while achieving profitable returns.
Key Takeaways
- •Childcare deserts affect 51% of U.S. communities.
- •Fortech developed $240M in preschools across 14 states.
- •Early‑education sites are single‑tenant NNN properties, ~10k sq ft.
- •Local architects and GCs ensure community‑focused development approvals.
- •New $30M fund aims to institutionalize early‑education investment.
Pulse Analysis
Pablo Barreiro, chairman and co‑founder of Fortech, has turned a niche segment of commercial real estate into a national growth engine. By concentrating exclusively on early‑education facilities, his team has deployed more than $240 million in preschool projects across 14 states, directly tackling the childcare‑desert crisis that now touches 51% of U.S. communities. These sites serve families where parents need reliable, on‑site care, and they also address a broader economic issue: 88% of employees cite childcare as a barrier to punctual work attendance, while 34% have left jobs for the same reason.
Fortech’s development model treats each preschool as a single‑tenant, triple‑net (NNN) property averaging 10,000 sq ft of classroom and playground space. Projects can arise from greenfield land or the adaptive reuse of offices, churches, and other structures, allowing rapid scaling while preserving community character. A core differentiator is the firm’s commitment to local collaboration—hiring regional architects and general contractors, soliciting community input, and navigating zoning and entitlement processes before acquisition. This localized approach not only smooths approvals but also builds goodwill, positioning the developments as long‑term community assets rather than speculative flips.
The latest phase of Fortech’s strategy is a $30 million institutional fund designed to bring large‑cap investors into the early‑education arena. By aggregating capital, the fund aims to institutionalize a sector traditionally dominated by mom‑and‑pop operators, promising both solid returns and measurable social impact. The capital will fund additional NNN preschool builds, further narrowing the three‑to‑one demand‑supply gap in childcare deserts. As policymakers increasingly recognize the link between preschool availability and workforce productivity, Fortech’s model offers a scalable, community‑centric solution that aligns investor interests with broader socioeconomic benefits.
Episode Description
Pablo Barreiro of Fortec on childcare real estate, daycare deserts, preschool development, and the investment case for early education CRE.
The Crexi Podcast connects commercial real estate (CRE) professionals with industry insights built for smart decision-making. In each episode, we explore the latest trends, innovations and opportunities shaping commercial real estate, because we believe knowledge should move at the speed of ambition and every conversation should empower professionals to act with greater clarity and confidence.
Pablo Barreiro started in real estate at 18 and spent years learning the business before co-founding Fortec: a Miami-based developer focused exclusively on early childhood education real estate. Since 2020 he has led more than $240 million in preschool developments across 14 states, building the case that childcare real estate deserves its own institutional asset class.
In this episode, Pablo joins host Shanti Ryle to talk about what a childcare desert actually is, why 51% of the US lives in one, how Fortec underwrites and scales preschool developments nationwide, and why finding the right investors matters more than finding the right deal.
Pablo Barreiro's background and path to founding Fortec
Getting licensed at 18 and learning real estate before the degrees
Why he pursued law and economics alongside development
From general CRE to spotting the childcare niche in Hollywood, Florida
What early childhood education real estate actually is
Greenfield builds, retrofits, and repositioning mom-and-pop centers
Why he went exclusively national instead of picking one market
The social economic case: 40 jobs per preschool, community infrastructure
Hiring local GCs and architects to earn community trust
Spending on entitlements before acquiring the property
The new $30M fund and the goal of becoming the institutional player
What a childcare desert is: 3x demand for every available seat
51% of the US lives in a childcare desert
88% of employees late to work cite childcare issues
How reducing rent helps reduce tuition for families
The 5% tuition increase versus 8% cost increase problem
The biggest investor misconception: this is not a standard triple net
Children, jobs, and community impact — what makes this asset class different
Where the need is greatest: follow the housing buildout
Multifamily developers calling Fortec to handle the school component
Permit timelines: 12 to 14 months total, six to eight of actual construction
Construction costs: slight decreases giving some breathing room
How to enter the childcare real estate space — capital network comes first
The real risk: doing four deals and running out of investors
What success looks like for Fortec in 10 to 15 years
Rapid fire: invest in the company over any single deal
Worst advice: find the deal first, find the money later
Contrarian belief: preschool beats every other retail asset class
About Pablo Barreiro:
Pablo Barreiro is the chairman and co-founder of Fortec, a Miami-based real estate developer focused exclusively on early childhood education real estate. He has played a pivotal role in helping define and scale this emerging sector, leading more than $240 million in developments over the past five years and drawing on more than two decades of commercial real estate experience as the niche has rapidly gained momentum nationwide.
Under his leadership, Fortec has emerged as a category-defining platform in education-focused development, earning recognition as Best Developer by Aventura Magazine and ranking among the South Florida Business Journal's fastest growing companies. Pablo has also been individually recognized on Worth Magazine's Worthy 100 list for his impact and leadership in business. His work addresses critical infrastructure gaps such as child care and daycare deserts, while advancing a scalable investment model that aligns real estate performance with long-term community impact.
A University of Miami graduate, Pablo holds multiple undergraduate degrees and a master's degree and earned his Juris Doctor from Florida International University. He has been a member of The Florida Bar since 2017, bringing a rare blend of legal and real estate expertise to complex, high-value transactions. His market insights and commentary have been featured in leading outlets, including CNBC, Bisnow, The Real Deal, and other real estate and business publications.
For show notes, past guests, and more CRE content, please check out Crexi’s blog.
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