Marijuana’s Impact on Real Estate
Oct 4, 2022,
A majority of adults in the United States currently have access to cannabis, whether medically or recreationally. As of this year, 19 states have legalized recreational cannabis use, while 39 states have legalized medical marijuana use. Over the years, the general perception of cannabis has evolved. Once seen as a danger to communities and to younger children, cannabis is now more readily available and marijuana sales produce taxable income for local economies.
For example, retailers in Colorado hit over $10 billion in marijuana sales since 2014, according to the Colorado Department of Revenue. Since 2014, cannabis in Colorado has generated $1.6 billion in fees and tax revenue alone. In this blog, we will explore the different ways cannabis is impacting the real estate industry.
Overall, the legalization of cannabis has benefitted commercial real estate. As explained by the Greater Capital Association of Realtors, real estate markets with fully legalized recreational marijuana attracts more homebuyers and renters, including marijuana consumers, entrepreneurs, and job seekers. Additionally, a survey by the National Association of REALTORS (NAR) revealed that “states where medical and recreational marijuana have been legalized for more than three years have seen more increases in demand for commercial properties.” As the NAR report indicates, 42% of those states saw an increase in demand for warehouses, a 27% increase in demand for storefronts and a 21% increase in demand for land.
Additionally, the demand for grow houses, which are properties dedicated to the growth and cultivation of marijuana plants, continues to increase. In fact, an NAR survey found that nearly 25% of realtors sold a grow house in states that legalized marijuana usage more than three years ago. Of that number, 75% reported that the grow house was not difficult to sell, and 85% had no title issues. The demand for Class-B and Class-C warehouses continues to grow as more people are using the space to store or grow cannabis.
People who are interested in investing in marijuana real estate can obtain up to 27,000 feet of vacant land to develop on with preliminary approval for cultivation, manufacturing & distribution of cannabis for $250,000. Considering the earning potential, a deal like this could be ideal for investors. However, it’s important to consider all the rules and regulations before investing in cannabis real estate. For example, marijuana is still illegal under federal law, which can complicate financing and banking activities related to marijuana.
BOSTON (May 17, 2023) – The Metro Boston Group, a leading real estate firm, is proud to announce the expansion of its commercial sales services into the Greater Boston neighborhoods and South Shore markets. This expansion comes in response to recent successes and client demand for a greater presence in these areas. To lead this expansion, Karim Evans has been appointed as commercial sales advisor. With his wealth of experience in investment acquisition, sales, leasing and asset management, Evans is well-suited to support local businesses and help The Metro Boston Group target the highest and best-use potential of its clients. “Our efforts are dedicated to assisting small to mid-size clients who are often overlooked by larger national and regional real estate companies. Traditionally, these are non-institutional owners, investors, family-owned trusts with generational assets, and developers who are searching for the full level of service they deserve,” said Albert Bouchie, broker advisor of The Metro Boston Group at Coldwell Banker Commercial. “Karim's skills and commitment to building thriving local economies align perfectly with our goal of serving Main Street-Down the Street commercial property owners and investors and helping them reach their full potential.”Evans will be responsible for expanding The Metro Boston Group’s brand awareness by leveraging his extensive market knowledge and client base. He is committed to generating long-term capital appreciation for his clients’ investment portfolios and is always available to answer any questions about the commercial real estate market."We are excited to have Karim on board as our commercial sales advisor,” said Bouchie. “His personal interest in supporting local businesses and dedication to customer service make him a valuable asset to our team.” For more information about The Metro Boston Group's commercial sales services, please contact Karim Evans at (857) 763-7771 or firstname.lastname@example.org. For more information about The Metro Boston Group, please visit www.cbcboston.com.About Coldwell Banker Commercial AffiliatesColdwell Banker Commercial Realty, an affiliate of Coldwell Banker Commercial®, provides commercial real estate solutions serving the needs of owners and occupiers in the leasing, acquisition and disposition of all property types. With a collaborative network of independently owned and operated affiliates, the Coldwell Banker Commercial organization comprises almost 200 companies and more than 3,000 professionals throughout the U.S. and internationally. For additional information, visit www.cbcworldwide.com. ###
On this episode, we're joined by Deborah Shames, Communication and Presentation Trainer, Keynote Speaker, Author, and CEO of Eloqui. Deborah uses her experience directing over sixty award-winning films to make her business clients more genuine, effective, and successful. It doesn’t matter whether they are delivering a keynote address, speaking to a Board of Directors, or pitching for new business. She co-wrote 3 books on communication and public speaking, including the business best-seller "Own the Room." And because Deborah ran a successful film company in Sausalito, CA for fourteen years, she knows how difficult it is for women to stand out and succeed. Her latest book she wrote is "Out Front: How Women Can Become Engaging, Memorable and Fearless Speakers."