As California draws closer to legalizing marijuana, commercial land remains a premium item. In fact, commercial real estate that is cannabis friendly is now leasing for double or triple the amount that businesses have traditionally paid for them. This is good news for those who own such properties in the Golden State.
For instance, in one case, a man agreed to pay $5,000 per month for 10 acres, with under one acre of this plot being used to grow cannabis. If no cannabis were growing on this land, the property would have probably rented for just $2,000. Those in the marijuana industry must be willing to accept high rents and the competition that comes with purchasing these in-demand properties if they want to succeed in the industry.
Various types of real estate properties are currently being sought ahead of California's expected legalization of cannabis in January. These properties range from industrial warehouses to farmland and even retail storefronts. Along with the high demand for these properties, city zoning restrictions and complicated regulatory requirements can make purchasing such real estate a daunting task for both veterans and newbies in the industry.
Purchasing or leasing commercial real estate can be complex and stressful, especially in California's competitive environment. However, selling real estate can also be challenging, with one mistake having the potential to cost a seller immensely in terms of money, time and energy. An attorney can provide guidance to buyers, renters and sellers seeking various commercial properties in San Francisco as well as other parts of the state.
Source: leafly.com, "Finding the "Green Zone": How Specialty Realtors Are Cashing in on Cannabis," Hayley Fox, Oct. 31, 2017