What kind of real estate do you need for your cannabis business?

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FROM compound annual growth rate (CAGR) 21% and a consumer base that is growing with each new state that enacts cannabis legalization law, the cannabis industry is one of the most explosive new markets in the United States. Therefore, it should come as no surprise that investor interest in buying or starting a cannabis business is growing along with the booming market. If you are an investor interested in claiming a share of this predicted $ 41 billion market, you need to consider this property.

Greenhouses

Greenhouses allow cultivators to experiment with innovative technologies such as crop management – where growers manipulate conditions and feeding to optimize yield – and just generally have more control over growing conditions, from soil nutrient profile to moisture and temperature.

Investors interested in touching plants who want more predictability and control during growing should look for properties that already have functional greenhouses like this one. 72 acres in upstate New York with fully operational greenhouses.

However, for some investors, the cost of buying a property with greenhouses already installed may be too high. With a higher initial investment, it will take longer to get your investment back. For those looking to go into cannabis cultivation at a lower cost, it is best to start with the land.

Land

Outdoor cultivation is a cheaper alternative to greenhouse cultivation for investors looking to venture into plant-specific cannabis production, but with less investment in time and capital on real estate and equipment.

Outdoor cultivation has almost no construction costs and is much easier to set up with even a little experience. The trade-off is that you have little control over the growing conditions. Your crops are more vulnerable to pests, natural disasters, droughts, and other problems that can ultimately cost you money.

However, outdoor cannabis cultivation in fertile areas like this 20 acre tract in Oklahoma this is a good way to reduce the initial investment costs, while not excluding the possibility of moving to the greenhouse in the future.

Warehouse space

Refining and marketing in an industry can be just as profitable as growth. Warehouses are key for storage and distribution, but they can often be turned into laboratories and processing plants, where businesses can turn plant material into a range of cannabis products, including CBD oil, foods, beverages, and so on.

With the right licensing and zoning, warehouse space can even be used for indoor growing, making it a versatile choice for investors looking for a business to manage the entire process from growing to sales. This Warehouse in Northern California, for example, has the right to store, distribute, laboratory, manufacture and grow, giving investors limitless opportunities to create a full-service cannabis business.

Shopping areas

Whether an investor is interested in the work and risks of growing and processing cannabis, or looking to add a showcase to their existing business to do direct sales to consumers on their own, retail space is key.

When choosing real estate to showcase, you should consider the location, interior and exterior layouts, as well as local licensing requirements and laws regarding retail cannabis products.

This last point can be tricky – the unique legal landscape of cannabis is currently highly fragmented, and policies at the local level vary quite a bit. This makes it difficult to know exactly what to expect when looking for the right property. That’s where sites like 420objects come in handy. By exclusively displaying listings of properties that are suitable for use as a cannabis business, you can browse through the listings without wasting time on properties that are inadequate.

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© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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