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How are marijuana laws impacting commercial real estate?

On Behalf of | Dec 25, 2019 | Real Estate Litigation

With the complete legalization of marijuana in California comes an increase in the need for commercial real estate properties. This is not about a need for retail space, though. It is much bigger than this. According to Green Entrepreneur, the need is for warehouse space where businesses can grow and store their product. 

It takes a lot of space to properly grow marijuana, and after harvest, it requires even more space to store the product before the company can sell it. This need for space is greatly increasing the demand for warehouse properties throughout the state. 

Because demand is up, it makes every property more valuable. Rent prices are increasing as a result, and there is a lot of competition to secure warehouse locations. This is the perfect environment if you are a commercial real estate owner who has such properties. 

Of course, there are limitations, which also plays in to the demand. There are laws that say where such operations may locate their facilities. If you have a property located in an area that restricts growth operations, then you will not feel the impact of the industry. However, if you are in an area that welcomes the marijuana industry, you should prepare for plenty of interest in your property. 

One area that is prime real estate for the marijuana industry is Lynwood. This area is very marijuana friendly. So, if you own a warehouse in this area, expect to see a lot of interest. Expect to see similar trends in areas where the local community supports this industry. This information is for education and is not legal advice.