Understanding Marijuana Leasing Trends

Learn how investors can capitalize on California’s growing cannabis industry.

Since the legalization of marijuana in California, the industry has been expanding rapidly.  However, capitalizing on this growing sector isn’t as easy as procuring commercial spaces and leasing them to tenants in the cannabis industry.  As your California commercial real estate advisors, we understand the nuances of real estate and its role in the marijuana market.  Here’s what investors need to know to take advantage of California’s cannabis boom.

  • Understand Local Marijuana Markets

Because the cannabis market is dictated by state and local laws, there are no universal rules for the leasing commercial spaces to cultivators, processors, and distributors.  For instance, some localities may require that cultivation happens in an enclosed space.  This means that investors would have to secure a space large enough to house the plants and with the right infrastructure to support the utilities needed for high-volume cultivation. Understanding your local cannabis rules will help you determine if your industrial space is appealing to those in the marijuana business.

  • Have a Long-Term Business Plan

If you wish to capitalize on the growth of the cannabis industry, then it’s better to go in with a long-term plan as opposed to approaching it with a purely speculator mindset.  When you are willing to do the market research, understand local marijuana laws, and shift your strategy along with the industry, you will be far more successful than investors who jump in with little planning and understanding of the industry.

  • Expect Competition

If the real estate boom triggered by the legalization of marijuana in Colorado is any indication, California’s legalization will lead to many different parties trying to cash in on this new industry.  As an investor, this means that you should expect stiff competition.  However, by doing the necessary research and offering comprehensive lease agreements, you will have a far better chance of signing tenants than less prepared investors.

This is what your California commercial real estate advisors have to say when it comes to capitalizing on the rapidly expanding cannabis industry.  Do you have additional questions regarding your commercial real estate needs?  If so, then contact the experts at California Commercial Realty Advisors, Inc. for assistance today.

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