Commercial Real Estate is on a sure-fire roll with the impact of Cannabis on the Canadian Retail industry
The massive interest in the Cannabis Retail industry will prove to be the timely, HIGH and mighty saviour for the Commercial Real Estate industry this year. Commercial spaces like warehouses, greenhouses as well as brick and mortar retail stores will be in significant demand for this booming new market.
Cannabis retail is at an all-time high (pun intended) this quarter with more than twenty five publicly-traded companies having a combined total current market value (CMV) of $23 billion. The
recent legalization of marijuana (cannabis) for all uses, last October 17, has put Canada in the spotlight all over the world. As the only major global economy progressively supporting this venture, it is also in fact the second country in the world, alongside Uruguay, to legalize cannabis production for recreational and retail use. Multiple companies are now rushing out to grab a piece of this nation’s new and emerging cash cow.
Financial analysts
predict that within two years, the cannabis retail industry will be earning a cool $1 billion and will have a retail market value of more than $7 billion. It will be of no surprise that the cannabis industry will be larger than the liquor and wine market by 2020. Stock value of cannabis related products have grown upwards of 10x in the past couple of years. Canopy Growth, the first Canadian cannabis company to be publicly listed on the New York Stock Exchange has a current market value of no less than $10 billion.
Numbers were indeed high rolling on the first day as there was a significant demand for the cannabis products across the nation. Online e-commerce software company Shopify
reported that they were seeing hundreds upon hundreds of orders per minute for their Canadian online stores. In fact, government owned online store of the Ontario province received approximately 40,000 orders before noon the same day.
Various other industries have been reported to be severely affected with this up and coming market though. Some have more than a positive impact as compared to others. With the commercial real estate industry in the forefront, the need for commercial real estate space will be immensely high. Similar to
how it was in the Wild West, the Canadian cannabis industry will require a greenhouse, a warehouse, mall and retail locations to satisfy the demand of this emerging market. Prime locations will be competitive and a marketplace tools will be useful for finding the best locations for the manufacturing and distribution facilities that this
industry requires. Such services as Spacie will allow landlords and real estate brokerages all over Canada to advertise their listings at no charge at all. It will allow you to connect the tenant to the dream green client of their choice. It will be possible to gain free access to any type of commercial real estate listings such as retail spaces for public distribution. This platform will open a door to searching for industrial facilities intended to be used for manufacturing and production use. Even needs for office and corporate spaces will be addressed in a simple and straightforward manner.