In the midst of America’s major evolution for cannabis reform, legal cannabis isn’t the only ‘budding’ industry in the works. Commercial property opportunities are the new venture for these companies, as the necessity for real estate for marijuana-related businesses becomes prevalent in states where its growth – be it for medical or recreational purposes – is legal. With Florida following suit in the movement for legalization, it is important to realize the fact that commercial real estate prices are bound to soar. In states like Denver and Washington where recreational use is legal, growers and distributors have undertaken most of the available warehouse space.
With the marijuana industry perfectly poised to expand and flourish in sales, the problem for these business owners is the need for space, as well as necessary updates to the space to make it suitable for the growth, packaging, and storage of their products. According to The Wall Street Journal, in areas where marijuana production constitutes a significant chunk of their revenue, such as Colorado, growers and distributors took up a third of all warehouse space leased over the past 18 months. The effects of the referendum on marijuana began to hit Colorado’s commercial real-estate market roughly a year later. While investment in the industry only picked up after recreational use was legalized, investors were still quick in beginning to pour money into their production facilities and other “canna-business” assets in Colorado. With Florida on the cusp of passing its medical cannabis reform, similar expectations are set for the state.
When looking for commercial real-estate, a grower is typically interested in warehouses smaller than 80,000 square feet, but converting these space into cannabis-growing facilities takes hundreds of thousands of dollars in upgrades to accommodate for lighting, electrical, and ventilation for the plants. The sector, while difficult in dealing with legalities and licensing, proves to be lucrative in the long run, which is why many investors are piggybacking onto the idea of expansion to other states, such as Florida. Florida doesn’t border a state that has legalized marijuana use, which means that there is not much transport in or out—it is grown, processed and consumed right there. The opportunities are endless for cannabis in Florida, and if the bill passes the commercial real-estate market will flow in tandem with the new wave of revenue that will be introduced to the “Sunshine State.”
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
