The boom in commercial cannabis real estate is reaching the northeast

The American cannabis industry has grown tremendously so that it is now part of many industries, from healthcare to wellness, skin care, etc. However, it has not made its way into the real estate industry as it is tedious to get a license and secure a location even more. challenging.

Each state has its own rules and restrictions on its real estate market, making it very difficult for cannabis entrepreneurs to get real estate. With cannabis not legal at the federal level, banks are hostile to the industry, which means traditional mortgages are not an option.

This article focuses on the cannabis real estate market in New England and New York and covers a few specific states. States include Vermont, Connecticut, New York, New Jersey, New Hampshire, Maine, Massachusetts, and Pennsylvania.

Most of the above states have a fully legal cannabis industry that is a legalized sector for both medical and adult use, but with an “opt-out” clause.

The clause states that if the village decides to ban cannabis deals in its location, it will ask more for places in the communities that allow cannabis deals to be allowed.

Cannabis growth in the northwest

The cannabis industry in the northeast has seen tremendous expansion at an incredible rate. In 2018, there were only 187 pharmacies in nine states. Interestingly, that number rose to 424 in March 2021, of which only Maine and Massachusetts have adult products for sale. The rest of the states had only medical marijuana.

As impressive as these numbers are, they are expected to rise again when other states are fully legalized. This will happen in states like New York and New Jersey.

The Massachusetts cannabis boom

Great Barrington is an area in Massachusetts that is booming in cannabis dispensaries. It’s a lovely town in the center of the Berkshire Mountains, a popular tourist spot. Tourists can ski in winter, go hiking and camp in summer. The city also has a busy summer performance calendar, which attracts baby boomers to see dance and theatrical performances. As the ideal tourist epicenter, it’s also the perfect place to build a pharmacy, and Great Barrington first opened its doors to the cannabis industry.

The opening of the gates led to an increase in pharmacies, and today the city has had enough of them. With a population of less than 7,000 people and plenty of pharmacies, it’s safe to say that Great Barrington benefited from the Massachusetts cannabis boom.

Another area in the state, Springfield has also attracted many pharmacies and Boston and its surrounding suburbs. But there are also places in the state that don’t have pharmacies, mainly due to a lack of tourist attractions and a large freeway.

Newcomers to the cannabis boom: New York and New Jersey

In contrast to the other soon fully legal states such as New York and New Jersey, Massachusetts looks like a classic car. The cannabis markets are expected to be sizeable, with only legal medical marijuana found in both states.

Both states recently legalized adult cannabis, with New Jersey starting sales in 2021 and New York starting sales April 1, 2022. Both states are known for expensive real estate.

The medical cannabis state: Pennsylvania

Known as a purely medical cannabis state, Pennsylvania, like its neighbors New York and New Jersey, is under great pressure to become fully legal.

In the past 12 months, medical cannabis sales in Pennsylvania totaled $ 910 million. Medical cannabis sales have also increased over the past 13 months, starting at $ 40 million in January 2020 and closing sales of $ 98 million in January 2021.

The state’s pharmacies and stores have increased from 47 in 2018 to 110 in 2021: this is for the medical market only. The state’s market is growing, while Canadian companies have “overbuilt” facilities, but Pennsylvania is demanding more.

Maine: A completely legal cannabis state

Maine is a great example of a fully legal cannabis state, and with its recent surge in business, you can understand why this market is so important in the Northeast. The number of stores in Maine increased from 8 in 2019 to 23 in 2021.

Propco, a New York-based real estate investment trust power REIT subsidiary, bought three acres in York County, Maine. The property was sold for $ 400,000; It is a 32,800 square foot cannabis grow facility with a 2,800 square foot processing and distribution building.

Propco says it will fund the construction of an additional 9,900 square feet of processing space while renovating an existing 2,738 square foot building on an acquired lot.

This combined real estate investment is expected to become one of the premier cannabis greenhouse growing, processing and distribution properties in Maine. The acquisitions show that the cannabis boom is thriving in the Northeast in general and Maine in particular.

The other states of the northeast

The other states all play a minor role in the cannabis real estate dynamic in the Northeast. For example, Connecticut has four manufacturers that make up 18 pharmacies and facilities. Vermont has seven pharmacies, Rhode Island has three, and New Hampshire has five.

Connecticut passed a law to legalize marijuana earlier this year, but it is still in the works. The Rhode Island Senate Committee held a joint hearing on two proposals to legalize marijuana. The Vermont governor has legalized the law without his signature.

It is safe to conclude that the northeastern states are maximizing the cannabis boom, which will have a positive impact on cannabis real estate. After these legalization proposals are implemented, marijuana business owners will need rooms to set up pharmacies.

Bottom line

The cannabis industry in the northeast has immense potential for the cannabis market. The COVID-19 pandemic caused massive disruption to traditional retail markets for many governments, and lockdowns led to a rise in the price of online shopping. Brick and mortar retailers are forced to close stores, which increases business opportunities for cannabis dispensaries.

Rural land has also increased in value through remote work caused by lockdowns, creating multiple opportunities for urban environments to be relocated to rural areas. Old and depressed cities are coming to life again, causing a decline in demand for prominent locations.

As rules and regulations change to suit the post-COVID-19 era, cannabis real estate in the northeast will enter a new phase where it will be easier for cannabis entrepreneurs to thrive.

GET OWNERS AND A LOCATION IN THE CANNABIS ZONE, READ MORE …

HOW OWNERS CONTROL THE MASSACHUSETTS MARIJUANA LICENSING NOW!

OR..

HOW LEGAL CANNABIS AFFECTS PROPERTY PRICES IN A CITY!