There was a place that did this in Menlo Park/Mountain View a few years ago called Cubes & Crayons. They really tried to make it work, but ended up having a lot of problems and eventually threw in the towel. Their daycare was decent, but the office side of things didn't cut the mustard.
And that, I think is the problem with the business model. It's hard to make both the day care, and the office space work, and one side is probably going to suffer. Do you focus on the day care, which is a larger market, but has high turnover (kids grow up fast), or do you focus on the smaller flex office space where you can potentially hook people for longer? The flex office space might not be a good idea because many people might just work from home instead, and are really just looking for someplace to park their kids for a few hours so they can get some work done.
Cap that off with having to follow additional regulations around running a child care facility, and it makes for a pretty tough business.
And that, I think is the problem with the business model. It's hard to make both the day care, and the office space work, and one side is probably going to suffer. Do you focus on the day care, which is a larger market, but has high turnover (kids grow up fast), or do you focus on the smaller flex office space where you can potentially hook people for longer? The flex office space might not be a good idea because many people might just work from home instead, and are really just looking for someplace to park their kids for a few hours so they can get some work done. Cap that off with having to follow additional regulations around running a child care facility, and it makes for a pretty tough business.