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Top 5 Reasons To Invest In Cannabis Real Estate

Top 5 Reasons To Invest In Cannabis Real Estate

The cannabis industry is growing faster than ever, thanks to increased legality across the country. Many states have legalized recreational cannabis use, but nearly every state has legal medicinal use laws, and both are expected to increase. With legal cannabis use on the rise, investing in related real estate is a great financial decision with little risk.

In some states it might be hard to find financing - cannabis is still illegal at the federal level, so banks that invest in cannabusiness could, in theory, be raided by the federal government. With that said, however, most lenders are getting more comfortable with supplying new cannabis startups with the funds necessary to help their businesses thrive, especially in states where it's legal recreationally. 

Let's look at the top 5 reasons you should be investing in cannabis real estate, and why it's such a solid investment in legal cannabis states.

1. Demand is high, supply is low

Whether you're buying the cannabis space to grow, manufacture, or sell cannabis products, there's simply far Inline Blog Images (14)more demand than there is supply. Consumers want cannabis products and there needs to exist places to produce those products. 

In many cities there are only a few dispensaries with long lines and slow turnover, so more availability is king. On the supply side, more raw product is never going to be wasted, and as legality increases across the country, getting in on the ground floor is a tremendous investment opportunity.

2. Licenses are in short supply

While procuring a state license to produce cannabis or cannabis products are relatively easy to get, it's local jurisdiction that you need to be concerned with. Many cities across the country have limits on the amount of licensed growing or manufacturing facilities that can exist, and the sooner you get your foot in the door, the better your chance of getting one of those licenses.

A similar situation with liquor licenses exists in states like Michigan, where many people are vying for just a few business licenses. Securing yours as early as possible is a tremendous investment down the line.

3. Cannabis is a highly profitable business

Unlike opening a restaurant or a retail store, cannabusiness is in constantly high demand, and will be for years. The very fact that it's not legal across the country means that where it is legal is bound to be a huge potential for growth and profit. It is extremely unlikely that any state that has legalized cannabis for sale will roll it back, so cannabis real estate is a safe investment, and it's incredibly likely that you will never want for customers.

Additionally, there are so many spots you can insert yourself in the cannabis process—growing, manufacturing, creating edibles or equipment, storefront, and so on. You can find something that scratches that entrepreneurial itch. 

You May Also Like: Plant Touching vs. Ancillary Cannabis Businesses

4. Legalization will continue to increase

11 states and the District of Columbia have legalized recreational cannabis use, and even the most conservative politicians are seeing the profit generated by cannabis sales as something they want for their state. 

If you're in a state considering legalization, be poised to pick up real estate when the laws pass and you'll be in a great position to profit from the legal cannabis boom.

5. Cannabusiness will continue to grow

Cannabis is expected to grow from a 10 billion dollar industry to well over $100 billion in the next few years, largely due to the increasing favorable opinion of the product and increased legality. There is room for many businesses in this industry, and cannabis real estate increases in value at a much higher rate than comparable industrial investment property. 

Cannabusiness makes sense

There are few markets with so much potential for growth and diversity that have the same indication of momentum. No city in the country is claiming there are simply "too many cannabis businesses"; demand for cannabis is only going to increase. With that in mind, it's worth the time and effort to find a cannabis-friendly lender and start investing in cannabis real estate now. You can get pre-approved for financing today. 



Related Posts:

Regulations in Cannabis Real Estate

How Do I Get Funding To Buy Cannabis Real Estate?

How Marijuana Legalization May Influence Cannabis Real Estate Funding

Posted by Canna Business Team



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