People looking to buy or sell Walnut Creek real estate may be surprised to learn that Starbucks can increase a home’s value. Yes, the close you are to a Starbucks may determine how much you pay for a house or how much profit you gain when selling your home. It’s called The Starbucks Effect. The basic real estate belief behind this is that if you take two identical homes that were old in 1997 and compare the financials, you will quickly see how having a Starbucks near your home can have a great impact. In this study, one near Starbucks would have sold for an average of $137,000, while the same home without a Starbucks would have sold for $102,000. Fast-forward 15 years: the average US home appreciated 65 percent to $168,000, but the property next to Starbucks skyrockets 96 percent to $269,000. That’s right, 96%!
Starbucks’ mission is “to inspire and nurture the human spirit—one person, one cup and one neighborhood at a time.” So, what does Starbucks know about real estate that the rest of the world would like to be clued in on? Well, the Starbucks’ location selection process, and his extremely talented team. They look at numbers and the company looks at local real estate. By gathering geographic information data—assessing factors like an area’s traffic patterns and businesses, Starbucks can start looking possible locations and success rates. This said, the talent also has boots on the ground to factor in store design, and a host of other issues, like local-centric calculate issues and what it would take to amplify each neighborhood’s positive attributes by making each location feel like a social hub.
If you don’t live near a Starbucks now, but are looking to buy, think like coffee company and consider the future of the possibilities. And if you do live near a Starbucks, consider how important of a role that coffee shop is playing within the local real estate market. Want to know the value of your home near a Starbucks right now? Or the cost of a dream home near Starbucks vs. in a further away location? Don’t hesitate to reach out to me, as I am happy to talk shop at- where else- our local coffee shop!