Why do building values go down when wal-mart moves in?

Question

I can't remember the specific reasons. but i know if you want to sell a business building next to a wal-mart, you won't get a higher or equal price than if you sold it before the wal-mart.

Answer 1

Simple: Wal-Mart sells cheap stuff. So instead of getting high-end customers you get lower strata. And if you have a gourmet cheese shop and MalWart decides to pay you a permanent visit you will go under.

Here are some questions to make you think about whether you would want to buy near a WalMart:

Why would anyone walk into your store to buy anything that they can buy for cheaper at a WalMart?

How many WalMarts have a clean parking lot? They are always full of bags and loose shopping carts. So the "curb appeal" goes down.

How much do WalMart workers get paid? Does this boost the appeal of the surrounding shops?

Do lower income earners shop at boutiques or WalMart?

That oughta answer your questions.

Answer 2

Well you could never put a boutique beside a Wal-mart. Since Wal-mart carries so many sub-goods you can't really put stores around it that carry the same or similar items.

No to mention that traffic increases and crime rates go up around Wal-marts.

I am sure there is a market for certain types of buildings near Wal-marts. If the building is a gas station or a fast food restaurant then it might very well, go up in value.

Answer 3

Walmart is such a down-sizer store. it makes surrounding stores look lowly and dirty. It would be different than being next to a Chanel store, right?

Answer 4

well you see...WalMart attracts cheap people and sells cheap crap. It's not hard to imagine why the property value decreases.

Answer 5

I dont know - they seem to create an economic black hole for any near-by small business.