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Starbucks and real estate...

By
Services for Real Estate Pros with Globrix

In the Western world, Starbucks are everywhere. If you walk past a Starbucks and decide you fancy a mocha caramel extra shot wotsit but the queue looks too long, you can pretty much say ‘Meh, we’ll go to the next one’, knowing that in 5 minutes you’ll be at another one of their establishments. I’m pretty sure London has the highest Starbucks concentration in the world, there’s definitely far more than in Manhattan. If you stand on Oxford Street today, you have a choice of 139 Starbucks stores within a five mile radius. So as you can see, there are quite a few.

But we’re all well aware that Starbucks has been suffering of late, especially in the US where their rapid expansion has resulted in overkill. They recently announced a mass culling of jobs and closure of 600 US stores over the next year and, whilst many people are enjoying the fate of Starbucks as a talking point, Zillow have raised the interesting question of ‘what does it mean for house prices?’.

The last two properties I have rented (one in Brighton, one in London) were both pretty much opposite a Starbucks, and I have to say it helped seal the deal when choosing where to live. It’s embarrassing to admit as no-one wants to look like a corporate fascist that goes out of their way to live near a monopoly coffee chain, but I do like frappuccinos an awful lot.

In the US, a lot of Starbucks were built in areas that were expected to become property hotspots. But then after the property crash, these new homes never materialised. Now people are having to worry about whether their local Starbucks is one of the 600 to be closed, and what that could mean for their house prices. According to the Zillow post, having a Starbucks in the neighborhood raises US property values because of the demographic the chain attracts.

Would Starbucks ever affect your choice of where to live? Or does that seem like a ludicrous question?

Comments (11)

Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

I sold a luxury town home in McLean Virginia. One of my buyer's criteria was that they be able to "walk to Starbucks". I also sold a home in Severna Park, MD because it was close to a Einstein Begel shop which was familiar for my buyer from Chicago. Folks like what is familiar.

Jul 08, 2008 12:25 AM
Audrey H. Lipford
Lipford Associates - Briarwood, NY
Esq.

Good morning Poppy. I know a lot of people who can not function without their coffee in the morning. It is very serious business to plenty of people. So are crispy cream donuts... Ask Tann. She is the donut queen.  :-)

Jul 08, 2008 12:25 AM
Chris Cliff
DDIY Home Renewal - Lynnwood, WA
The Home Repair and Painting Guy

LOL....   In downtown Seattle you can literally walk out of one Starbucks and see then the next one (at least if you are tall like me) through most of the downtown area.

Out in the burbs the independant espresso stands rule, jammed into every extra spot they can find in parking lots.

Jul 08, 2008 12:29 AM
Michelle Gordon
JH Realty Partners - Ada, MI
Finding Your Place

Hi Poppy, Very interesting post.  I do not think I would NOT move to place that did not have a starbucks, but I have to admitt my neighborhood has 3 of them.  One free standing building and 2 of the grocery stores on either end of the village has a kiosk. I am there almost everyday!  I would sorely miss them if they went away. 

Jul 08, 2008 12:29 AM
Midori Miller
Talk 2 Midori, LLC - Daytona Beach, FL
Online Marketing For Real Estate Professionals

Poppy-what a cool name!  Love your pic.  Starbucks is not that important to me but 7-11 is..my favorite convenience store and my guilty pleasure.  If I get lazy or if there are events in town..I just spend a fortune for what you would normally spend at the grocery.  It's ok...no fighting traffic...I can actually walk there if I want.  I love the coffee..and I can count on it to be good!  Starbucks would not do it for me but other shopping might.

Jul 08, 2008 12:30 AM
Poppy Dinsey
Globrix - Anaheim, CA
London, UK

Lenn - I've considered moving from where I am now, but would miss my 24 hours bagel bakery too much :-)

Audrey - I'm trying to lower my donut intake until September (bikini holiday in Israel, eeeek) but I plan to be going Kripsy Kreme crazy over winter!

Chris - I want to visit Seattle so much, now that I know I'll be surrounded by Starbucks I have even more reason to go ;-)

Jul 08, 2008 12:45 AM
Poppy Dinsey
Globrix - Anaheim, CA
London, UK

Michelle - I know exactly what you mean, it wouldn't make me NOT live somewhere but to have one is a welcome bonus.

Midori - Hehe, glad you like my name! The first question I get from most people is 'is it your real name?'. And it is! I have the birth certificate to prove it. We don't have 7/11s here in the UK, I've always wanted to visit one....is that really uncool of me?!

Jul 08, 2008 12:48 AM
Clint Miller
Real Estate Pipeline, Inc. - Missoula, MT

Im not sure if real estate emulates Starbucks....but Im pretty sure that Starbucks emulates real estate.  The market has been down for a good year or better....and now Starbucks is closing 600 stores....Coincidence??????

Jul 08, 2008 12:50 AM
C Tann-Starr
Tann Starr & Associates, Inc. - Palm Bay, FL

Krispy Kreme Doughnuts, Inc. (NYSE: KKD), based in Winston-Salem, North Carolina is very serious business, indeed! I now know you've never had one because you spelled it wrong! (LMAO)

I do so love you Audrey. Seriously!

Poppy D., you must take lots of pics on you bikini holiday! My husband will be thrilled! He's a new fan. Your photographer friend's artwork will be purchased for our new home in FL next year. I'm thrilled about the up coming arrangements. It's our first house! We'll be doing everything brand new from scratch! I've never done that before. Too cool!

Maybe I should call in the stagers... Hmm... Kathy, we need to talk (LOL).

I do know I have every intention of calling Carole P. I've been learning a lot from reading her blog. She's awesome!

Jul 08, 2008 12:56 AM
Melody Botting
Broker Associate PenFed Realty - San Antonio, TX
You Deserve The Best

I clicked on this post and got very confused about where you live.  I had to go to your profile before commenting.

I hadn't thought about the affect of the real estate market on Starbucks.  Humm...  I don't go there as often anymore because I am not driving as much.

Jul 13, 2008 04:52 AM
C Tann-Starr
Tann Starr & Associates, Inc. - Palm Bay, FL

Hey Mel, Starbucks is just one of many indicators  in the "signs of the economic times" drama unfolding. 

Jul 13, 2008 05:42 AM