Thriving Small Businesses Boost Real Estate Values, Research Shows

Thriving Small Businesses Boost Real Estate Values, Research Shows

When small businesses thrive, real estate thrives

datachannel.orgThriving Small Businesses Boost Real Estate Values, Research Shows. In another reason why consumers consider buying local, new research reveals that successful small businesses are helping fuel declining real estate markets in some communities.

That’s the conclusion of the American Express OPEN Independent Retail Index, which found that neighborhoods with thriving independent businesses have seen home values ​​outperform city markets by 50% over the past 14 years.

The report specifically studied 27 neighborhoods where small businesses thrived in 15 major U.S. cities and found that home values ​​there outperformed their wider markets by 4% annually.

The study also shows that those neighborhoods benefited from strong hiring in small independent businesses.

The hottest areas of the neighborhoods surveyed supported an average of more than 1,800 jobs in independent shops, restaurants and bars. “This research validates what we intuitively know: that small businesses are the lifeblood of our communities,” said Susan Sobbott, president of American Express OPEN, in a prepared statement. “There is solid evidence that thriving independent neighborhoods lead to higher real estate values ​​and more local jobs.”

The Independent Retail Index also tracked and ranked the performance of independently owned retail and food and beverage outlets in 15 of the largest cities in the United States over the past two decades. New York, San Francisco, Washington, DC, Boston, Philadelphia and Miami all scored significantly above the national average in terms of the vitality of their small business sector, in both retail and food and beverage industries. On the other hand, Phoenix, Dallas, Minneapolis, San Diego and Detroit were well below average.

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“Our study shows that there is no single formula for success,” Sobbott said. “Any city in the United States can nurture a vibrant small business community.”

The study also showed that independently owned retailers and restaurants have lost some of their market share over the past 20 years.

Independent bars and restaurants accounted for 64% of total sales in 2009, down 7 percentage points from the past 20 years. Additionally, small businesses accounted for less than half of total retail sales in 2009, another notable decline.

The report identified some encouraging trends; The data showed that local clothing stores have seen a healthy rebound in recent years, with furniture stores and the sector, which includes sporting goods, books, music and hobbies stores, maintaining a high share of the market over the last. year.

Additionally, independent grocery stores have kept pace with the overall performance of the industry and have experienced a modest increase over the past decade. The research, designed to show the benefits to communities that support independent local stores, was based on information from more than one million retail stores, restaurants and bars that have been open for at least a year.

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