The National Association of Realtors is out with a survey that confirms what people in real estate already know about marijuana.
It’s good for business, the commercial real estate business — especially the business of rescuing, renovating and repurposing ratty retail shops and functionally obsolete warehouses, according to the study, “Marijuana and Real Estate: A Budding Issue.” (Cute).
In states with legal marijuana, whether for medical use or for fun, more than a third of Realtors polled said they saw an increase in demand for warehouses and other storage space (check), a fourth said they saw increased demand for storefronts (check), and a fifth said there was greater demand for land (not that I’ve heard of).
States where marijuana has been legal longest have seen the biggest impact on both commercial and residential real estate, the Realtors said.
“As more states legalize marijuana, the real estate market will progressively have to adjust,” said Jessica Lautz, vice president of demographics and behavioral insights for NAR. “From property owners, to manufacturers, to those who simply want to engage for leisure — it all touches real estate in some form.
“When the business of marijuana is discussed, some have a tendency to focus on only the buyers and sellers of the product. However, these numbers show that marijuana has been a boon to commercial real estate.”
Increased demand means what it always means:
“Some commercial properties near marijuana dispensaries experienced rises in property values. In states where marijuana is legal for both recreational and medical use, more than one in five saw an increase in property values near dispensaries; a smaller share saw a decline in values,” the Realtors said in a report on the study.
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