By Sean Colón
In the world of real estate, where data-driven decisions can make all the difference, imagine having a crystal ball that predicts the next hot property market. Well, it turns out, such a predictor might just be your local Starbucks! That's right – the "Starbucks effect" is a captivating phenomenon that Arizona realtors can leverage to guide clients towards lucrative real estate investments. In this blog, we're diving into the magic behind the Starbucks effect and how you can use it to your advantage.
What is the Starbucks Effect?
You might have noticed that when a Starbucks opens its doors in a neighborhood, something interesting starts to happen – property values in the vicinity start to soar. This intriguing phenomenon is known as the Starbucks effect. It's not just a coincidence; it's a testament to how businesses like Starbucks can become a pulse of neighborhood growth and prosperity.
The Research Behind It
“Arizona realtors, armed with this knowledge, have a unique advantage in guiding clients towards the most promising real estate investments”
Thanks to diligent research by real estate experts at Zillow, we have solid numbers to back up the Starbucks effect. Properties within a quarter-mile radius of a Starbucks experience a faster appreciation in value compared to those farther away. Between 1997 and 2014, properties near Starbucks stores witnessed a staggering 96% increase in value, surpassing the 65% rise seen in all U.S. residential properties.
Arizona's Slice of the Pie
While the Starbucks effect is indeed a nationwide phenomenon, certain cities take the cake – or should we say, the coffee cup. Key cities like Boston, Philadelphia, Washington D.C., Chicago, and Baltimore have seen significant impacts on their local real estate markets. This trend is all the more reason for Arizona realtors to pay attention, especially considering the dynamic nature of real estate in the state.
Why Starbucks?
But why Starbucks? What's their secret sauce? It's all about strategic decision-making. Starbucks employs a team of analytics experts who meticulously study factors like traffic patterns, local businesses, and demographic trends. By identifying neighborhoods on the rise, Starbucks secures prime locations, effectively positioning themselves as pioneers. This proactive approach is a lesson that realtors can learn from – stay ahead of the curve by understanding demographic shifts and economic metrics that drive potential buyers.
Not Just Coffee: The Whole Foods and Trader Joe's Effect
Surprisingly, Starbucks isn't the only player in this game. Zillow's research has shown that properties near specialty grocery stores like Whole Foods and Trader Joe's also experience accelerated appreciation. Homes within a mile of these grocery chains can be worth double the value of those farther away. This finding speaks volumes about how certain retailers can act as catalysts for neighborhood growth.
Putting It All Together
While upscale retail stores are often found in affluent communities, the Starbucks effect isn't just limited to luxury. It's a reflection of the powerful interplay between retail establishments and local real estate markets. Arizona realtors can harness this insight to identify promising neighborhoods, predict trends, and guide clients towards investments that are likely to yield substantial returns.
New Starbucks Locations in Arizona (a.k.a Neighborhoods to Watch)
8/4/23 Wickenburg (Wickenburg & US60)
7/7/23 Tucson (I10 N & Contaro Farms Rd)
3/31/23 Avondale (107th & Indian School)
2/3/23 Phoenix (Central & Earll)
1/20/23 Marana (Sandario & I10)
1/13/23 Tucson (22nd st and Kolb)
11/23/22 Mesa (University & Stapley)
9/28/22 Tucson (Grand & Swan)
9/2/22 Gilbert (Gilbert & Guadalupe)
8/26/22 San Luis (22nd st & Main)
Conclusion
The "Starbucks effect" isn't just a coffee-fueled myth – it's a proven phenomenon with real numbers and tangible impacts. Arizona realtors, armed with this knowledge, have a unique advantage in guiding clients towards the most promising real estate investments. By understanding the connection between retail giants and property values, you can unlock a new dimension of expertise that sets you apart in the competitive world of real estate. So, keep an eye on those Starbucks cups – they might just hold the key to your next success story!
By the way, I help realtors improve their online presence by providing beautiful photos of their listings. That is why I’ve created this FREE HOME PREP LIST for your clients to help your listings look their best. Feel free to share.