Average weekly rent of a flat by distance to nearest starbucks
London has one of the highest concentrations of the Seattle-based company - Starbucks - anywhere in the world. To give you an idea of exactly how many, there are about 120 Starbucks within 3 miles of the Bank of England in the heart of the City.
The popularity of the coffee chain provides a great indication of an area's prosperity. Although during recent times the economic gloom has had a negative impact on the company's revenues and caused the closing of some stores, the company's profits are back on the up. With the upcoming Olympics, Starbucks plans to invest £8m to revamp 70 of its London stores.
So, how does this all impact rents? Well, our analysis has shown that for every 0.5 km a property is located from a Starbucks, the rent falls by an average of 20% up to 2.5km away. For properties that are 2.5km away or further from a Starbucks, rents fall by an average of 10% for every 0.5 km further they are.
Admittedly, Starbucks only chooses locations with a dense population of residents with high disposable incomes- the swarms of analysts at Starbucks certainly do their homework!
Furthermore, the opening of a Starbucks in an up-and-coming area helps attract other higher-end businesses, which in turn increases the influx of more well-to-do residents. As such rents start creeping up: people that request a caramel macchiato with an extra shot just won't make do with simple fixtures and fittings. They're after high-spec pads with all the mod cons and are happy to pay the prices.
So, next time you look for a property, see where the furthest Starbucks is to check if the weekly rent being asked is about right!