Photo: The original Starbucks location in Pike Place Market in Seattle, Washington.
While every REALTOR® cringes at the mention of a “Zestimate” (more discussion about that in a separate post), Zillow (shudder) is very good at one thing – collecting data. Every time you visit the site they are collecting data. Every time you search a home or look at photos, they collect your information. So when the Starbucks real estate analytics team and the Zillow analytics team got together and compared data, the conclusion was that if your home is near a Starbucks location, your home’s valuation is generally higher. According to the book Zillow Talk, these properties near a Starbucks location generally appreciate at a faster rate than US housing on the whole, and they are recovering much faster from the housing bust. These statistics don’t hold true to just any coffee shop, but are specific to Starbucks locations.
What it boils down to is this. Starbucks research is extensive when it comes to store location. They not only need to know where their customers will be now, but also over the next 10-25 years, the lifetime of their investment in the brick and mortar physical space. So if you own a home within a quarter mile to a half mile of a Starbucks location, or even better more than one location, you are in a great spot.
Keep this information in mind when looking for your next home, or for an investment property.
Fun Fact: Where did Starbucks get its name? From Moby Dick – Starbuck was a first mate and inspired the Starbucks name.