Matt Cheney of Washington Fine Properties introduces the Starbucks Effect on real estate.

Features:

  • Have you noticed a new Starbucks in your neighborhood? Or is there one planned to open soon? Chances are that real estate values are on the up-swing in your neighborhood.
  • They call it the Starbucks Effect. Simply put. A new Starbucks increases home and property values.
  • It might also be a sign that your hood is about to get hot!
  • And real estate developers know this. They make plans based upon Starbucks locations. Even try extra hard to land them for their projects. Interesting right?
  • Researchers have found that properties within a quarter mile of a Starbucks values go up faster than those not close to a store.
  • They say between 1997 and 2014 properties closer to Starbucks rose 96% vs. the US average of 65% for that same time period. Wild right?
  • And of the markets that saw the biggest effect Washington DC ranked third in country. 3rd!
  • Guess what? Whole Foods and Trader Joe’s grocery stores seem to also have the same effect on residential property values. Just after this store opened here in Logan the downtown condo market here in DC took off.
  • Again, they say between 1997 and 2014 properties within a mile of the two grocers were worth more than double the median home value in the nation.
  • Luxe Fact: The Starbucks Effect: properties within a quarter mile of a Starbucks values go up faster than other properties.
  • Luxe Fact: Between 1997 and 2014 properties closer to Starbucks rose 96% vs. the US average of 65% for that same time period.
  • Luxe Fact: Washington D.C. ranked third in the country for the Starbucks Effect.
  • Luxe Fact: Between 1997 and 2014 properties within a mile of Trader Joe’s or Whole Foods were worth more than double the median home value in the nation.