{"id":185464,"date":"2025-11-03T11:08:46","date_gmt":"2025-11-03T18:08:46","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=185464"},"modified":"2025-11-03T11:09:08","modified_gmt":"2025-11-03T18:09:08","slug":"walmarts-expansion-could-create-bring-growth-to-real-estate-markets","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/walmarts-expansion-could-create-bring-growth-to-real-estate-markets","title":{"rendered":"Walmart’s Expansion is Set to Bring Growth to Real Estate Markets\u2014Is Tracking New Locations the Next Best Investing Strategy?"},"content":{"rendered":"\n

U.S. big-box chain retailer Walmart is on an aggressive expansion plan. Real estate investors could do well by following in its wake. <\/span><\/p>\n\n\n\n

Walmart recently announced plans<\/span><\/a> to construct or convert more than 150 stores nationwide, including locations in key markets in Texas, California, Florida, Alabama, and Utah. In doing so, the retailer underscored its commitment to brick-and-mortar retail and the large-scale employment from local communities. <\/span><\/p>\n\n\n\n

\u201cAn Investment in a Community and New Job Opportunities\u201d<\/span><\/h2>\n\n\n\n

Walmart’s expansion is a major driver of employment, especially in its Supercenters. New Supercenters have opened this year in Frisco and Cypress, Texas, with a new store planned for Melissa, Texas, in November. The company’s expansion will continue into 2026, with new locations slated for Apollo Beach, Florida, and Eastvale, California,<\/span> USA Today<\/span><\/a><\/em> reported<\/span><\/a>.<\/span><\/p>\n\n\n\n

Walmart has more than 4,600 locations in the U.S. It has opened nine stores in 2025, according to<\/span> Business Insider<\/span><\/a><\/em>, usually targeting metro areas that are growing but not saturated. The retailer’s move into a new location depends on good local infrastructure and an available workforce.<\/span><\/p>\n\n\n\n

“This isn’t just a ribbon-cutting. It’s a commitment to the future, an investment in a community and new job opportunities,” John Furner, president and CEO of Walmart U.S., said in a statement at the opening <\/span>for<\/span> the company’s Supercenter in Cypress, Texas.<\/span><\/p>\n\n\n\n

Why Walmart Makes Sense for Local Landlords<\/span><\/h2>\n\n\n\n

When a Walmart comes to town, there are definite upsides for local landlords.<\/span><\/p>\n\n\n\n

1. Improved retail access and convenience<\/span><\/h3>\n\n\n\n

Aside from Walmart employment, having a Supercenter nearby is a positive for the local community, offering the convenience of a full-service retailer. <\/span><\/p>\n\n\n\n

2. Increase in home values<\/span><\/h3>\n\n\n\n

A 2014 <\/span>study in the <\/span><\/a>Journal of Urban Economics<\/span><\/a><\/em> found that homes within 0.5 miles of a new Walmart appreciated by about 2% to 3% within 2.5 years, compared with those farther out. A study two years prior found that Walmart<\/span> increased home values by 3%<\/span><\/a>.<\/span><\/p>\n\n\n\n

3. Employment and commercial spillover<\/span><\/h3>\n\n\n\n

Walmart brings a host of employment opportunities, including store operations, supply chain, and ancillary retail, while also attracting other businesses to the area. <\/span><\/p>\n\n\n\n

At Walmart’s corporate headquarters in Bentonville, Arkansas, vendors associated with the company in a nearby location known as “Vendorville” have sparked real estate activity, resulting in 2.7% population growth in Bentonville, increased house prices and rents, and a catalyst for other businesses, according to the commerce site<\/span> Doing Business in Bentonville<\/span><\/a>.<\/span><\/p>\n\n\n\n

Changing Aesthetics and Perceptions<\/span><\/h2>\n\n\n\n

While some<\/span> neighborhood groups<\/span><\/a> contend that a big-box store such as Walmart causes excessive traffic and lowers <\/span>quality<\/span> of life, the pandemic changed many people’s minds.<\/span><\/p>\n\n\n\n

“A lot of more affluent shoppers relied on Walmart for e-commerce grocery delivery during the pandemic and have since discovered that Walmart’s not a terrible place to shop,” Bryan Gildenberg, founder and CEO of Confluencer Commerce, told<\/span> Modern Retail<\/span><\/a>, noting that the company’s focus on design upgrades has helped change perceptions. “As a result, you don’t have the visceral reaction to a Walmart coming that you might if you walked into a Walmart store 30 years ago and found it to be a little bare-bones and underkept for your taste.”<\/span><\/p>\n\n\n\n

Walmart’s Wage Increases Bring More Money to Local Communities<\/span><\/h2>\n\n\n\n

The commonly held perception of Walmart as the lowest rung on the retail ladder, serving low-income shoppers and employing poorly paid workers, has also changed, as the company has raised its pay structure. In 2024, the company increased the average salary for store managers to<\/span> $128,000<\/span><\/a> a year, enabling potential homebuyers and tenants employed by Walmart to spend more on housing.<\/span><\/p>\n\n\n\n

“In general, retail is no longer the low platform on the totem pole, in terms of pay in a given geography,” Gildenberg said.<\/span><\/p>\n\n\n\n

Fulfillment Centers: Untapped Potential<\/span><\/h2>\n\n\n\n

Walmart’s expansion of its retail business coincides with growth in its industrial real estate, with multimillion-dollar fulfillment centers completed in<\/span> Chicago, Miami, Denver, and Seattle<\/span><\/a>, bringing jobs for workers and logistics professionals. In Kings Mountain, North Carolina, located south of Charlotte, Walmart plans to open a 1.2 million-square-foot facility in 2027, creating more than 300 jobs.<\/span><\/p>\n\n\n\n

“We’re excited to join the Kings Mountain community and proud to create long-term career opportunities where associates can grow and build their future with Walmart,” Karisa Sprague, senior vice president, supply chain, Walmart U.S., <\/span>said in a statement<\/span><\/a>.<\/span><\/p>\n\n\n\n

Staying Power<\/span><\/h2>\n\n\n\n

Walmart’s expansion comes as other<\/span> big-box retailers have struggled<\/span><\/a> amid rising living costs. <\/span>Walmart’s commitment to \u201c<\/span>everyday low prices<\/span><\/a>\u201d has benefited it, as customers have sought to <\/span>downsize<\/span> expenses amid <\/span>an inflationary environment<\/span>.<\/span><\/p>\n\n\n\n

In a strategic move, Walmart has capitalized on a fragile retail landscape by aggressively expanding its retail footprint by buying shopping centers to control the narrative and minimize competition around its stores. It recently acquired a Norwalk, Connecticut, shopping center for $44.5 million\u2014its third major real estate acquisition since the start of the year.<\/span><\/p>\n\n\n\n

“Sounds like Walmart is taking an expanded real estate playbook move compared to McDonald’s by buying the center itself, which means another revenue stream as a landlord,”<\/span> TheStreet<\/span><\/a> retail expert Chris Versace said. “It also allows them to control the tenant mix, which could reduce competitive pressures.”<\/span><\/p>\n\n\n\n

For potential real estate investors in areas where Walmart has a significant presence\u2014whether as a retailer, shopping center, or industrial owner\u2014it’s a safe bet for prosperity and a long-term tenant base. <\/span><\/p>\n\n\n\n

“I’ve always spoken about experiential and retail, and I think it’s a smart move,” retail expert and RTMNexus CEO Dominick Miserandino told<\/span> TheStreet<\/span><\/a>.  “By owning the entire shopping center, Walmart isn’t just a tenant anymore. It’s in control of its own world.”<\/span><\/p>\n\n\n\n

Final Thoughts<\/span><\/h2>\n\n\n\n

Walmart isn’t the only show in town when it comes to how retail affects property values and the general attractiveness of an area for residents, as<\/span> studies have shown<\/span><\/a>. However, what Walmart does have is volume. The sheer size of its operation means that, whatever format it is in, it will require a large workforce, which in turn will need housing. <\/span><\/p>\n\n\n\n

An average-sized Walmart employs 200 associates, while a Supercenter employs 300. A Walmart Neighborhood Market employs an average of 95 people, according to<\/span> Capital One Shopping<\/span><\/a>.<\/span><\/p>\n\n\n\n

Of course, other institutions are also major employers, such as hospitals and universities, and investors should regard a new Walmart in the context of the other nearby institutions and businesses. Generally speaking, though, as a housing provider, staying on Walmart’s tail, as it expands rapidly, is a good move.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

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