Starbucks or Whole foods opening means this neighborhood is growing

"Wake up and smell the coffee," writes Michael Corbett, Trulia's real estate expert and and host of NBC's "Extra's Mansions & Millionaires!" in his book Before you Buy! The Homebuyer's Handbook for Today's Market.

He's talking about big chains such as Starbucks and Whole Foods. If you see them opening in a new neighborhood, it's a sign that the neighborhood is up-and-coming, and therefore a smart real estate bet.

In his book he writes:

One of the best ways to stretch your buying dollar is to find a neighborhood that is in transition. Called fringe or transitional neighborhoods, they are typically close to major metropolitan areas and were once neglected and less desirable. Is there a trendy restaurant where a tattoo parlor used to be? These neighborhoods are now beginning to enjoy a new life and your goal is the find them.

...

Has a Starbucks just opened on the corner or maybe a Whole Foods Market? These are all good signs that a neighborhood is on the upswing. You can bet that big chains like Starbucks spend a lot of money and time analyzing neighborhood potential before they open up a new store. So go ahead, tap into their market research and be their neighbor.

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The Water Cooler
5 Comments

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hammerman on Nov 12, 11:26 AM said:

Hmm there is a starbucks and on every block of downtown chicago, LA and NY. Whole Foods is in every subutb by us but home values are down just like the majority of places...

TB on Nov 12, 5:17 PM said:

If a Whole Foods is already up and running chances are the real estate value is long gone.

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on Nov 12, 9:54 PM said:

I don't know, I live in a town where Starbucks just came to a few years ago and I will tell you that you will tell you that it is not a rising area and will not for a very long time. It is a good area, but it was before they came and has not changed much and will not for a long time.

I surmise they moved here because for some reason Marriott has built about 10 hotels within a half mile of their store. No lie.

segovia on Nov 13, 1:42 PM said:

Pity Obama didn't know this before 9-11-12. He could've opened one in Benghazi.

Byung Koo Mulder on Nov 13, 7:58 PM said:

Superficial statement, 2008-2009 Starbucks closed more than 600 stores, so by the next crisis, you can sell your house again, with big loss? You buy real estate based on total other reasons than if there a Starbucks around. Real estate prices down the last years and Starbucks opened hundred stores........