Most people working in the market will by now,be aware, of the bubble in Californian real estate prices for those looking to invest in the cannabis sector.
National Real Estate Investor online has a well researched and succinct article on the subject, if you are so inclined.
“Real estate provides a conservative way for investors to participate in the cannabis market without actually ‘touching a leaf,’” says Aaron Hertzberg, a partner and general counsel for Calcannholdings Inc. His company is a cannabis real estate investment firm focused on creating a chain of cannabis dispensaries throughout Southern California. The company is repositioning retail space in compliant locations as attractive storefronts, and is inviting private investors to participate in projects. It currently has two locally licensed dispensaries in Long Beach and is working on others in Los Angeles and Bellflower in Los Angeles County, Santa Ana in Orange County and Lemon Grove in San Diego County.
“We’re seeing a ‘land rush’ for light industrial warehouses,” says Mikalonis. “The biggest demand is for cultivation space. Prices for warehouse space have skyrocketed over the last 12 – 24 months, based on cities going legal.”
Growers in the Bay Area are paying $2 per sq. ft. or more for warehouse space, he adds.