The Starbucks Effect in Real Estate

0

The Starbucks Effect in Real Estate

Starbucks, the iconic coffee roaster and retailer, has grown into a $15 billion company, with more than 19,000 locations in more than 60 countries. You can spot that familiar green-and-white logo from Saudi Arabia to Switzerland, in a Dubai shopping mall, or on a Carnival Cruise ship. Where the Berlin Wall once stood, there’s a shiny new Starbucks instead. Conveniently, one of our desks has a view of the original Starbucks store in Pike Place Market.

Starbucks’ mission is “to inspire and nurture the human spirit—one person, one cup and one neighborhood at a time.” Any college student downing venti caramel macchiatos to stay awake the night before a big exam can testify to Starbucks’, in a word, nurturing qualities. But as it turns out, Starbucks correlates with something else, too: rising home values.

To explore exactly how closely the two correlate, we compared a database of Starbucks locations with Zillow data. And since Starbucks’ corporate headquarters in Seattle is located just a few miles down the road from Zillow, we also took the opportunity to pay our neighbors a visit, and to pick the brains of Starbucks’ own real estate analytics team—the whizzes who determine where to put that next Starbucks location. ….

LEAVE A REPLY

Please enter your comment!
Please enter your name here