Marijuana has been legalized in some 28 states due to its medicinal benefit. Further, nine states have accepted it for entertainment use. The legal cannabis industry is continually growing and becoming a big business for sellers and growers and now the real estate industry. The effect of cannabis industry on the real estate is now realized. By example, there is a marked rise in sale price rates and rents for facilities and properties that are specifically for the cannabis industry and where cannabis is being used for recreation or medical.
Properties like warehouse, agricultural, storage and industrial facilities designed specifically for the cannabis industry are suddenly on very high demand partly as a result of the demand for processing and cultivation of marijuana. Because the cannabis industry is on the rise, property demand and interest for those that will allow retail and growth of marijuana will also increase.
In as much as there are many opportunities surrounding real estate, marijuana legalization for recreational and medicinal uses brings about some issues on the transactions of real estate with sellers and growers and with managers, property owners, tenants who must deal with issues on the right for growth and consumption of marijuana, and security concerns.
The retrofits amounts and extents needed in going about the cultivating and growing cannabis as well as the urge to make the retrofits must be added as well as systems on an exhaust and climate control not to mention electrical infrastructure. Since we know that marijuana is not fully legalized federally, financial institutions may not be available to offer finances for acquiring and retrofitting of the buildings to be used, hence property owners must peruse the bank documents before renting out the buildings to be used by the cannabis industry on if the users will be limited or prohibited in any way. Visit – Greenzone 360 for more info.
The cannabis operations bring about issues with insurance because the processing methods may be flammable and a lot of water may be used not to mention the high security that is needed. Tenants and owners should ensure that there is a property and liability insurance in place and a worker’s compensation.
In case insurance is unavailable, property owners may expect tenants to insure themselves and get insurance through the insurance companies that accept to cover the marijuana industry. Once a property that will be used by marijuana users may have to take up insurance for the property because not all insurance companies cover such business that deals marijuana.
The real estate will have to slow down in the coming decade and be overtaken by cannabis business if it continues receiving acceptance in more states and countries solely because it serves as a herb to some human sicknesses. To know more, view here!
Learn more here: https://en.wikipedia.org/wiki/Real_estate_investing