What Investors Should Know About The Growing Green Rush
When you think of real estate, marijuana probably isn’t the first thing that comes to mind.
However in 2016, there’s no doubt about it - the marijuana market is impacting the real estate market – and the impact has been huge.
In fact, from 2014 to the first half of 2015, Denver, CO offered real estate investors some of the highest chances of returns in the entire country. And according to a recent report from ArcView Market Research, the legal cannabis market is projected togrow by 25% this year alone and reach well over $6 billion in sales.
Showing no signs of slowing down, there are certainly plenty of reasons why investors should be giving this market more than a second glance.
Market Trends And Demands
When it comes to the marijuana real estate market, the demand for industrial facilities and retail spaces in legalized states is growing sky high. As a greater number of legal cannabis products, dispensaries, and grow-ops enter the market, the need for space is evident.
Take Colorado, for example, the first state in the nation to legalize recreational marijuana back in 2014. Flash-forward to 2016 and in Denver alone, it’s estimated that 1 out of every 11 industrial buildings is full of marijuana. Astonishingly enough, the state’s cannabis industry is estimated to occupy a least 3.7 million square feet of industrial space.
Not to mention the number of emerging marijuana startups looking to enter the market.
With more states ready to legalize, it becomes quite clear the number of economically viable opportunities for investors in the legal cannabis industry. In fact, some have called this economic surge a 21st century “green rush”
However, while the marijuana market may be booming, that doesn’t necessarily mean that it comes without risk either. After all, considering the fact that cannabis and even cannabis seeds are still illegal on a federal level makes this landscape unpredictable, to say the least.
It’s important for investors to keep in mind that the marijuana market is evolving, which also means that it is highly susceptible to change. Policies are far from universal, with regulations varying on state and even local levels.
With plenty of changes still in store, investors looking to capitalize on the cannabis industry will need to stay savvy and prepared. Having knowledge of the industry is certainly helpful and advised.
After all, if there is one that that has become evident, working in the cannabis industry today requires flexibility and perseverance. Susceptible to far more scrutiny, those operating in any part of the marijuana industry must be prepared for the challenges ahead.
What does the future hold for the marijuana industry?
Although nothing is set in stone, it appears this industry is prepared to grow. And if Denver has been any indication for investors, the rewards may be well worth the risk. Especially considering the fact that the housing market in Denver is currently boasting record high rent rates and record low vacancy rates.
Not a bad problem to have in the real estate market.
And with 2016 really just getting started, you can rest assured that the future is far from complete for cannabis – which means there’s still plenty of time for those looking to get involved in the industry.
Although the future of cannabis remains uncertain, we may very well have billionaires and even millionaires in the making as the green rush continues to unfold.
What do you think; do you believe investing marijuana-based markets is a worthwhile venture? Why or why not?