The push for marijuana legalization is growing around the world. In the United States, legislation is passed on a state-by-state basis. States like Colorado, where medical marijuana has been legal for years, have seen increased demand for types of commercial real estate that had previously fallen out of favor.
At its core, cannabis legalization is a real estate story.
Due to its novelty, realtors are still figuring out where cannabis fits into their industry. Throughout this article, we’ll explore facts surrounding marijuana, real estate, and title companies like New Home National Title that specialize in both.
Marijuana Real Estate Opportunities
Commercial realtors receive training and licensure regulated by state standards. As a new sales prospect, cannabis realty has become cause for self-education where traditional training isn’t available.
Some facts to know are:
Warehouses: Data from the National Association of Realtors® (NAR) shows a 34% rise in commercial demand for cannabis storage, which means warehouses are in demand. That is a prime opportunity for commercial realtors to get in early. Warehouses were always for sale, but cannabis growing and storage was previously a non-issue. Legalizatio, both for medical and recreational purposes, has sparked a sudden need for a new breed of realtors and title companies who are ready to take on the challenge.
Land: Whether for building or growing, land leases and purchases require finesse when cannabis is concerned. In states where medical marijuana is legal, there has been an 18% grow in demand for land.
Commerce: Finally, once cannabis has been grown and stored, it’s sold. And there’s been a 31% increase in storefronts in cannabis-legal states. In a business environment that’s anything but friendly to retail, cannabis legalization is a breath of fresh air.
Changes in Property Value and Rising Crime
Property value and crime rates are big considerations for buyers. A negative connotation lingers around marijuana, but the truth of what happens when it’s legal far brighter. NAR data shows that states where cannabis use is legal, both recreationally and medically, there was no increase in the crime rate.
Importance of Choosing a Supportive Title Company
By working with a knowledgeable title company, realtors ensure all documentation aligns with state regulations. Again, the newness of cannabis realty makes finding an experienced title company difficult. Title companies moderate the closing process and provide title insurance for lenders and buyers. It’s important to work with the right title company for many reasons, including:
Your clients will want to know these are taken care of when they choose you as an agent. We’ve got you covered!
A Title Company with Cannabis Experience
New Home National Title is a title company with two feet planted in the now, and all eyes on the future. Rather than adhering to what’s “traditional” and “normal,” we welcome change and evolution at every turn.
For more information on our work with cannabis real estate, contact us today.