With 10 states plus the District of Columbia legalizing cannabis for recreational use and medical marijuana legal in another 23 states, cannabis sales are projected to grow from $10.8 billion today to about $100 billion over the next five years, according to the National Institute for Cannabis Investors.
As a result, investors in cannabis-related industrial real estate can expect exceptional returns on investment (ROI). In a 2018 survey by Denver-based PropTech developer Apto, 76 percent of commercial real estate brokers handling cannabis deals in all states where the drug is legal in some form reported cannabis deals pricing above market.
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Cannabis real estate values are likely to continue rising due to the supply-demand imbalane, says Clint Callan, a Bay Area-based partner at the national law firm of Duane Morris LLP. “With cannabis, there are only so many spaces and opportunities available, which runs up the price,” he adds.
To read the full text of this article in which Duane Morris partner Clint Callan is quoted, please visit the National Real Estate Investor website.