It’s no secret. Nike is the largest manufacturer of footwear and sportswear in the WORLD! I’m talking about the industry giant that literally has a footprint on every corner of the planet. So having such a popular brand in your very backyard must translate to something, right. In business, the best measure of a company’s real worth isn’t in the profits it makes but on the positive impact it has on society. It therefore doesn’t come as a surprise that a bold headline that reads ‘Nike’s Growth Impacting Beaverton’s Real Estate Market’ is bound to get a few tails wagging.
Assessing the impact of a business on it’s immediate society is perhaps the hardest thing to do as you have to look at past socio-economic factors and values and compare them with the present. However so, it is possible.
Late last year in October, Nike Inc. announced that it would be adding a 6th building to it’s national headquarters in Washington County. Apart from that, it is also carrying out renovations on existing facilities in line with a number of future goals. Not only is Nike Inc. expanding it’s operations, it is doing so in a sustainable, eco-friendly manner. This is in line with it’s 2025 target to make all of it’s facilities 100 reliant on renewable energy. However, this isn’t just good news for a planet at war against global warming, but it’s also a flicker of hope for the unemployed. For the man on the street this is terrific news, but from a real estate perspective, this is huge!
In real estate terms, enhanced local infrastructure means enhanced property values. With Nike, however, it’s on a grander scale than that. Just as having a business located in the busiest part of the city equates to higher rentals, so will the expansion of Nike’s headquarters increase the value of surrounding property. It is projected that once the new facilities are up and running, there will be an unprecedented rise in property values in the Beaverton area. Renting next door to Nike is definitely going to come at a cost that real estate agents will be swooping in on very swiftly.
Take a minute to reflect on a thing or two. First, not all of the workforce on the expansion project will be locally sourced. This means there is going to be a strong demand for housing from alien laborers for the duration of the project who, depending on their employment contracts, will be looking to either lease or buy. Second, once the expansion is complete, Nike is set to employ permanent staff to work in their new and revamped office spaces. That too will trigger a spike in property demand in Beaverton. If all goes according to plan, expect a property boom and a lot of activity on the real estate front for the next 5-10 years.
Nike’s growth is being hailed by many market analysts as the much needed impetus to resuscitate a failing real estate market. What it will mean for you, however, is how well you’re prepared for the years ahead.