Insight
Homes within a quarter-mile of a Starbucks increased in value by 96% between 1997 and 2014, compared to a 60% increase nationally during the same period.
The “Starbucks Effect” is Ending—Why Real Estate Values Near Closing Shops Could Suffer
Summary
Starbucks is closing underperforming stores, which could negatively impact the value of rental properties in affected areas, especially in urban markets. Hosts should pay attention to retail trends and the potential impact of store closures on neighborhood desirability and property values. Monitor local markets and consider the impact of retail changes when evaluating investment properties.
Key takeaway