When you’re looking for a new home, you want something located in a solid neighborhood, so that it holds its value and appreciates over the years. But how can you be assured this is the case? The answer is as simple as finding the nearest Starbucks.
No, we’re not talking about the allure of a mocha cappuccino. Rather, we’re talking about data— the kind that speaks volumes about the viability of a neighborhood. Local Starbucks stores are an indication that the numbers are in your favor.
RisMedia’s Housecall calls it the “Starbucks Principle.” “[I]t basically states that if you see a new Starbucks being built – or a large expansion/remodel of an existing Starbucks – then the area is likely a good area to buy in.”
RisMedia notes that Starbucks conducts intensive research before buying into a neighborhood, gathering information about demographics, population growth, disposable income and development. It makes certain that the area will be solid for years to come.
“Beyond their own in-company resources, they also have large numbers of developers and commercial real estate brokers seeking out their business. To get them to buy or lease in a given location, there has to be a strong amount of data to support the sales and growth potential of the area. They utilize all those resources to make sure they put stores in valuable locations.”
In addition, notes RisMedia, a new Starbucks store can create growth in the neighborhood, as other businesses take note and are lured to the area.
Bottom line: Look at the Starbucks outlets in the area, while also considering many other issues. “Buying a house based solely on the presence or expansion of a Starbucks certainly should not be your objective,” notes RisMedia, “but it can serve as a shortcut on research and a reinforcement of your and your agent’s knowledge about a neighborhood or community.”