Real Estate: National Association of Realtors Issues Report on Cannabis

February 21, 2020 | News, Real Estate
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The National Association of Realtors recently released a report outlining the impact of cannabis on commercial and residential real estate.

As legalization spreads across the United States, the industry is booming. Rising cannabis production had created an uptick in demand for industrial and office space. The Association States – where medical and recreational marijuana has been legal for more than three years – have seen more increases in demand for commercial properties. There has been a 42% in demand for warehouses, a 27% increase for storefronts, and a 21% increase for land.

National Association of Realtors on Cannabis

On the residential side of the market, questions remain about the growth and use of cannabis products in rental properties.

Many homeowners’ associations in legal-friendly states are passive measures on cannabis. Notably, they are moving to restrict the cultivation and use of marijuana in their neighborhoods.

Cannabis dispensaries are having some impact on local housing prices as well. According to the report, more than 80% of Association members in medicinal-friendly states have not seen a change in residential property values near dispensaries.

This figure is compared to the 60% to 75% of properties in states where both recreational and prescription marijuana are legal. In states where marijuana was legal the longest, 27% had seen a decrease in residential property values near dispensaries. Meanwhile, 12% had seen an increase.

Finally, on the commercial side, the study found: “In states where prescription marijuana use is legal, 19% of commercial members had seen an increased demand in warehouses, 18% in storefronts, and 15% in land. In states where prescription and recreational marijuana use is legal, 34% to 42% of members had seen an increased demand in warehouses, 18% to 19% in storefronts, 16% to 21% in land.”

You can download a copy of the full report on cannabis and real estate here

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