As the cannabis industry works to get its feet wet in the U.S., the challenges of legalization are slowly beginning to fade away. Many companies in the space have been working to create new and innovative businesses to help continue fueling the growing industry. Companies like the popular WeWork among others have been working to introduce the new start-up culture to the cannabis industry. Many of these developing businesses see the same large amount of potential that others see in the weed market.
Many developers have been working to build up the real estate industry that could coexist and be an interesting service industry for the cannabis market. One firm has stated that the California weed market alone could reach as much as $3.7 billion by the end of 2018, and as much as $5.1 billion by the same time next year. This is only a portion of the sales for the year, but it still presents an interesting case for a large amount of the growth in the industry.
Sean Beddoe, the founder, and president of Bow West Capital, a lead developer for the cannabis industry stated that “this is really an emerging industry, and I think LA is going to be the headquarters of cannabis in America. The Starbucks of the cannabis industry hasn’t been created yet.”
Green Street, the product that Bow West is working on is aiming to create a 67,000 sq. ft. Building in Downtown LA that would open by the end of November. This is going to be opened alongside other development projects that are slated to go up in the near future. According to one report “No cultivation or retail operations will be permitted in either building, just the work of service industries connected to cannabis, like advertising, branding, and legal firms. The coworking spaces are being pitched to potential clients in the same manner as any startup space, with an emphasis on innovation, technology, and business development.” These co-working spaces have been a large part of growth in the space, and have since become a huge part of the market.
Matt Karnes, a financial analyst with GreenWave Advisors stated that “as time goes on, the political risk of investing in pot is subsiding. If the Trump administration was going to do anything, it would have already. That’s putting more institutional investors at ease, and they’re starting to open their eyes and look at businesses in the cannabis and tech space, anything ancillary to the plant-handling part of the industry.” Many investors in the space have been afraid of putting their money in due to how new the industry is among the fact that it is still a sticky situation regarding legislation.
The pot industry is extremely new and ideas like this are helping to build the social infrastructure of the market for the future. These co-working spaces, among other innovations in the space, will effectively help to centralize new parts of the market that in turn can help to build the growing partnership network that we are seeing across the board. The hopes are high the companies like the ones mentioned above can continue to fuel new growth across the whole of the cannabis market. Only time will tell how these innovations will coincide with the changing legislation throughout the U.S. as well as the growing interest of investors. As the market is able to grow, so will the confidence among the individuals who are bringing new and exciting capital to such a fast-paced industry.
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