The nationwide wave of legalization is doing wonders for real estate values in Denver, Seattle, Portland and in Californian cities. According to CoStar Group Inc., a firm that tracks commercial property data, property values are increasing at a faster rate in states that have relaxed cannabis laws. Boston, Massachusetts is one of the new larger markets that is expected to cause a rise in industrial rental property values.
The anticipation of recreational sales is having a positive impact on smaller industrial buildings. “It’s had a tremendous, positive impact on rents and property values for the markets where this has been legalized,” Rene Circ, CoStar’s director of industrial research, told Bloomberg Markets. “Taking the experiences from the markets that have been at this for a few years, the suggestion is this will have a positive impact in these new markets.”
Between the first quarter of 2014 and May 2017, rent increased in Denver 33 percent. Industrial rent also increased in Seattle and Portland by 27 percent during the same time period. The new market in Boston is proving to be full of opportunities. At least 108 communities across Massachusetts are establishing regulations for recreational cannabis. 32 of those communities are considering an outright ban. Strangely, 51 of the communities that voted in favor of recreational cannabis are now considering actions to limit the industry.
Massachusetts is one of four states that voted to legalize recreational cannabis last November, by a small margin. Now one in five American adults lives in an area where it’s legal to consume cannabis. Recreational cannabis commerce is expected to roll out in those states within about six months.
Protesters gathered at the State House Wednesday to rally against delays in Massachusetts’ recreational cannabis program. About 30 people showed up including State Representatives Denise Provost, Mike Connolly, and Byron Rushing. Despite the delays, several types of industries could see a boost from the implementation of recreational cannabis in Massachusetts.