When it comes to the cannabis industry, given the legal processes involved, finding the right location can be extremely difficult. Since cannabis regulations usually apply at the state level, there is a patchwork of different rules and restrictions.
In the northeast, the cannabis industry has grown rapidly. With New Jersey and New York together with half of New England fully legalizing recreational cannabis, it’s no surprise that real estate demand is the highest. In fact, we’ve seen big leaps in the number of cannabis retailers For the past couple of years.
Take Massachusetts as an example: in 2018, the state had 65 medical cannabis dispensaries across the state. By 2021 that number rose to 206. Of a total of nine northeastern states, the number of pharmacies has risen from 187 to 424 in the last three years. And this upward trend only seems to continue.
Legalization measures continue to be considered in other northeastern states, including Connecticut and Rhode Island. One of the biggest challenges that made 2020 a great year of legalization is the fact that cannabis is a huge boost to economies. After the economic toll caused by the pandemic, it is understandable that many states are considering new avenues as a means of recovery.
Unfortunately, with the pandemic came the closure of a large number of brick and mortar retail stores. While it is difficult to determine who Weight COVID-19 will have For retailers in general, it goes without saying that there are a number of retail spaces across the country that are happy to be occupied. And cannabis dispensaries are a very viable option.
The main difficulty with New England (and the Northeast as a whole) is actually land value increased during the pandemic. This is due to the fact that tens of thousands have left major cities like New York to work remotely in a suburban / rural area.
With cannabis still illegal nationwide, it is extremely difficult for cannabis entrepreneurs to get a loan or other bank assets to start a business. Many are thus forced to work with the capital they already have. And as you can imagine, the cannabis business is slowly becoming something only feasible for the rich.
The northeast offers a great opportunity for the cannabis industry to thrive. However, how these states develop regulations regarding their industries will ultimately determine who will and will not benefit from this opportunity.