Investors Are Going Crazy Over Land, Retail, and Warehouse

Industry News - Warehouses

Wondering where the retail and warehousing industries are all the rage right now? Look no further — the answer lies in states where cannabis has already been legalized. In fact, the demand for land, retail, and warehousing is increasing so rapidly that we can call it “dramatic.”

A National Association of Realtors study was reported by Yahoo Finance, and it involved 600 commercial brokers all across America.

In short, the above-mentioned study came to the conclusion that the demand was significantly higher in states that legalized cannabis before 2016 compared to states that legalized after that year.

Furthermore, the demand for land, retail, and warehousing was lower in states where the use of cannabis is forbidden by law. Above all, investors are putting cash into real estates where the recreational use of cannabis is legal. Not only that, but there are also investment businesses opening offices in states where legalization of cannabis is on its way.

The trendiest of them all is, indeed, warehousing as it is utilized for both growing and storing cannabis.

  • If we compare 2019’s demand with that of 2017, it’s quite obvious that the increase for warehouse space has jumped by 42% in markets where cannabis for recreational use has been legal for over 3 years (Oregon, Washington, Alaska, and Colorado).
  • Also, the demand in states that legalized the substance after 2016 has increased by 34%.
  • When it comes to states that haven’t yet legalized recreational cannabis, the demand increased by just 18%.

According to Barthmaier, CEO of Green Acreage (a real estate investment trust focused on cannabis), the higher values equal higher barriers for entry. Furthermore, Barthmaier claims that it is vital to understand the demand and supply, as well as the regulatory dynamic in each individual state.

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