Nothing on the planet – not biotechnology, software, real estate, gold, aerospace, oil, smart phones, nothing… has seen a growth rate like cannabis or medical marijuana has. Imagine this: market for cannabis will be approximately $23 billion. The market for recreational marijuana could be larger than the NFL which hit $12 billion in the year of 2015. Moreover, it has been projected the growth of cannabis may hit $100 billion by 2029. Realizing all these aspects a lot of entrepreneurs have already gotten into the cannabis business.
Though a lot of people keep getting into this business on a daily basis, not all of them have the required investment to be successful in the industry. Some people may have the time and money, but not the real estate. On the other hand, some people may have the real estate but not the investment to start the business. This is exactly where the investors that are funding for cannabis business come into the picture. The cannabis business capital funding process works in different ways. Some of the most common ways include funding for the first seed, real estate, refinancing the existing property, and a lot more. Let us have a deeper look into the business.
What is the role of real estate agents in the cannabis industry?
People may wonder as to why they need cannabis real estate consultants. These agents diminish the time people might waste searching for buyers due to their widespread networks. Cannabis real estate agents make best use of sellers’ value while negotiating positive terms amidst intricate deals for buyers. Here, cannabis business owners need to know the difference between a real estate broker and agent. A broker is someone who has the educational requirements according to the laws of the state they are in. Also, the broker can work alone. On the other hand, agents can work as per the guidance of brokers.
The professionals at cannabis real estate industry are teams of real estate professionals who are experienced in the cannabis industry and/or commercial real estate. They carefully follow the state laws throughout the state (wherever they are) to identify the most excellent opportunities for cannabis business owners. The people who operate who operate such cannabis real estate firms would have the required experience in terms of cultivation operation as well as retail cannabis industry. So, anyone who needs professional help in the terms of cannabis real estate can locate such consultants without any hesitation.
Role of commercial real estate in the cannabis industry
With cannabis now legalized in several states across the nation, the cannabis business has been growing rapidly. Retailers, distributors, manufacturers and growers will all require a space to carry on with their business operations; cities would be bearing in mind extraordinary zoning for these people; and the land owners may want to know about the aspects they need to consider when renting their spaces to such businesses. Since the use of medical marijuana is legalized in most of the states, there have been huge amount of rules addressing retail shop licensing, warehouses and manufacturing/cultivation facilities as well as product types which can be sold.
Now, you may wonder as to how the commercial real estate industry gets into the picture. In towns and cities where manufacturing cannabis is legal, the medical marijuana industry has huge requirements warehouses as well as other industrial properties. Factories, Data centers and self-storage properties along with other commercial real estate have been repurposed for use in the cannabis industry. As a result of these things, properties values have hiked in the USA where cannabis cultivation is allowed. Since, there are lots of rules and regulations are involved while cultivation medical marijuana in such properties, cannabis business owners have to consult with people who deal cannabis and commercial real estate.
Where do real estate investors come into the cannabis industry?
There are literally loads of cannabis real estate investors out there on the market. Such investors can be found in every part of the nation as a result of the legalization of medical marijuana. These investors act real estate platforms for cannabis business owners. Their ultimate goal is helping operators expand their market reach in the cannabis industry. There are lots of such investors who provide competitive equity and debt terms on cannabis properties across the nation. Also, they allow cannabis business owners to quickly expand their businesses in a trustworthy and secure manner. Medical marijuana business owners who are completely focused on the operation can get equity capital from these investors. It will help them in purchasing their next location for their cannabis location. At times, these investors will the location of the business owners’ choice and lease the same to their business at reasonable lease rates. On top of these things, cannabis business real estate investors provide business operators with attractive rates for the required equipment; equipment required for opening all types cannabis-related facility.
What commercial real estate firms do with the medical marijuana business?
There are numerous companies that offer commercial cannabis real estate for sale. Such companies or agencies specialize in selling and leasing both commercial and cannabis eligible spaces located across the country. These firms give cannabis business owners the access to wide range of non-listed and listed:
- Distribution properties
- Cultivation properties
- Testing properties
- Retail properties
- Manufacturing properties and
- Micro-business properties
Cannabis-based entrepreneurs don’t need to worry as these firms are a group of real estate professionals who possess a huge experience in commercial real estate and cannabis properties. Most of these companies will have experience in lease & sales transactions associated with cannabis dispensaries, manufacturers, and cultivators. With extensive field knowledge and a huge network of landlords and real estate brokers, these firms can offer access to the largest selection cannabis-related commercial real estate across the nation. Most of such real estate companies would have huge databases which will be updated on a daily basis. These database will have the list of both off-market and on-market properties that are available for lease or sale. So, anyone who is into the cannabis industry or wants to venture into it can contact a reputed cannabis real estate company to find a property that best fits their budget and other preferences.