The Federal Liberals have announced that recreational cannabis will be legalized this summer, and like most investors, you’re no doubt wondering how exactly you can take advantage of this once in a lifetime business opportunity!
If you aren’t, then you most certainly should be thinking about it, as there are going to be more weed shops than coffee shops soon. In certain places like Vancouver, there already are!
Top 3 legalized cannabis opportunities
Here are 3 ways that real estate investors can get in on the huge opportunity that legalized cannabis will present;
1. Buy commercial street level retail real estate in high traffic locations. Depending on the province that you’re located in and the legislation, there will be weed shops all over the place in key locations. Stay away from locations near schools as most provinces have some sort of legislation pertaining to this, but look for high traffic locations near grocery stores. Look at where liquor stores, Starbucks shops, and Subway stores are located, and odds are that it’s a decent retail location. Urban locations will be key, but don’t forget about rural locations as these will likely be very, very successful as well. Solid, high traffic retail commercial real estate locations will be easy to rent out for the highest rents and ROI.
2. Buy rural industrial real estate and lease it out to licensed growers. Growers are going to require large parcels of industrial land for their operations. Find out what types of properties are currently being approved for licensed growers by the Federal Government, and replicate. Keep in mind that you will want to be near infrastructure such as airports, rail, and trucking lines to make distribution as quick and as efficient as possible.
3. Buy office space and lease it out to Cannabis companies. The licensed Cannabis producers, and soon to be retail operations are going to grow like crazy as prohibition gets lifted. They are going to need office space to house their growing operations. Think key urban office locations that are easily accessible to employees through bus routes, skytrain, LRT, etc.
opportunities for savy real estate investors
As you can see, there are massive opportunities for astute real estate investors and property managers to service this massive, explosive market.
If you are looking for some help finding suitable properties, or are looking for someone to help you manage your cannabis real estate, please contact our Vancouver property management company.