When it comes to real estate, the “Starbucks Effect” has become a well-known phenomenon. The premise is that if the popular coffee shop opens its doors in a neighbourhood, it’s a sure sign that the area has arrived.
But does Starbucks really have this kind of effect on an area, or is it all the other influencing factors that come before it that attracted Starbucks in the first place? In other words, Starbucks isn’t necessarily symptomatic of an area bound to go places, it’s the final stamp of approval. And, if this is the case, the key to making a good real estate investment is to get in before Starbucks sets up shop.
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