Voters in four states last year approved the recreational use of marijuana, and that is likely to launch a land rush there for warehouses and retail properties. Owners have been able to charge as much as three times market rates when selling or renting to businesses involved in the cultivation, distribution, processing or sale of cannabis, according to the Wall Street Journal.
- Be Smart: Many property owners won’t do business with companies selling cannabis because the federal government still classifies marijuana as a controlled substance, like cocaine or heroin. So for owners willing to lease to cannabis businesses, it’s highly lucrative.
- Backdrop: The number of states permitting recreational use for adults rose to 11, plus D.C., after November ballot measures passed in Arizona, New Jersey, Montana, and South Dakota.
- Dig Deeper: In states where prescription marijuana use is legal, 19 percent of commercial NAR members had seen an increased demand in warehouses, 18 percent in storefronts, and 15 percent in land. In states where prescription and recreational marijuana use is legal, 34 to 42 percent of members had seen an increased demand in warehouses, 18 to 19 percent in storefronts, 16 to 21 percent in land. [WSJ+CNBC+NAR]