Well, it happened. California now has legalized recreational marijuana use. And along with a very solid look at Doritos futures, it appears that our area is in for quite a commercial real estate boom.
According to recent Forbes story, “Legalized marijuana doesn’t just benefit cannabis advocates, though. It can also be good stuff for commercial real estate players — specifically, those who get in on the action in the industrial sector early enough to buy, finance or lease out warehouses that can be used for marijuana.”
And this against a backdrop where commercial real estate may be close to topping out. The latest Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey signals that California commercial real estate continues its boom, but as U.S. economic growth slows, there are signs of this boom topping out. The Survey, taken by commercial real estate industry leaders in June 2016, “provides the first indication of a topping out in office and retail markets,” says Jerry Nickelsburg, adjunct professor of economics at UCLA Anderson School of Management and senior economist with the UCLA Anderson Forecast.
So could pot actually be a way to keep the commercial real estate party going? Looks like it. And of course when you have landlords and tenants you’re bound to see the inevitable disputes. When those happen, call Dean Sperling Law and he’ll get your matter resolved with your best interests in mind.
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