Cannabis Business and its Effect on Real Estate
Marijuana has been legalized in some 28 states due to its medicinal benefit. In the USA, nine states have declared marijuana to be legal for their recreational use. There is marked growth in the legal industry of cannabis both for sellers and growers as well as the real industry investors. There is a realization of how the real estate is being affected by the cannabis industry impact. Rent and sales rates have increased in facilities and warehouses where the cannabis industry is marketed either for medicinal or recreational use.
Storage and industrial facilities, agricultural, warehouse all of which are being used in the cannabis industry are experiencing an increase in demand and interest because of the demand for the facilities for processing and growth of marijuana and products related to it. Due to the continued growth of the industry, the demand and interest for the property that can be utilized for growth and retail of cannabis is expected to rise. Check out Cannabis real estate for more insight.
Despite the fact that there several opportunities all over the marijuana industry, as its legalization for recreational and medicinal uses grows there are problems with real estate business with sellers and growers such as property owners, managers and tenants must address and consider who has the right to grown and smoke cannabis, concerns over security and an increase in tighter security.
The retrofits needed for the cannabis products growth and cultivation and ability to generate the retrofits must be included along with the electrical, exhaust and climate control systems. Due to its illegality with some authorities there are banks that may not be ready to finance for the retrofitting of the properties to be used by the cannabis industry, so the owners of the property should check the finance documents before using or leasing the property on whether there are any limitations or prohibitions for cannabis users.
The cannabis operations bring about issues with insurance because the processing methods may be flammable and a lot of water may be used not to mention the high security that is needed. Tenants and owners should ensure that there is a property and liability insurance in place and a worker’s compensation.
There are insurance companies that cover cannabis industry which is what landlords may expect tenants to obtain insurance from in case property insurance does not cover them. Property acquisition that will be associated or used with cannabis industry may cause property insurance because insurance companies will not cover any business including the property linked with the cannabis industry.
The fact that there is the cure in marijuana to cure some diseases will make the cannabis business to thrive rapidly and may even overtake the real estate if it continually accepted as it is in more nations and states. View more details at greenzone360.com.
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