What Will 2017 Have in Store for Cannabis Real Estate in California?

Last year was a very eventful and crucial year for the legal marijuana industry and cannabis real estate in California. The passing of Proposition 64 indicated a whole new realm of possibilities in terms of what would be possible for both medical and recreational marijuana. Now, as we get into 2017, here is a look into some of the things that will be happening this year that will have a great effect on the legal marijuana industry and cannabis real estate in California.

The Trump Administration

Those involved in the legal marijuana industry and looking to purchase cannabis real estate in California may be doing so with a sense of trepidation as the country waits to see whether President Donald Trump will attempt to intervene on legalization at the state level.

While marijuana is not legal at the federal level, those in the legal marijuana industry such as CalCann Holdings remain optimistic about the states being able to remain autonomous in terms of state-level legalization.

Price Decline

As we work with clients who are interested in purchasing cannabis real estate in California, CalCann will be careful to advise clients of potential falling prices. While it may not be until Proposition 64 is fully implemented that California will get a sense of the demand for legal marijuana, as with any product, prices fall with increased supply.

Prices will continue to fall as the market becomes saturated and oversupplied. While the legal marijuana industry comes with the promise of being profitable for Californians, those buying cannabis real estate should be sure to capture a niche part of the market to remain unique and profitable.

Changes in Financing and Banking

While an early challenge of the legal marijuana industry was getting financing from banks, due to the illegal status of marijuana at the federal level, 2017 may bring the promise of more financing opportunities. While CalCann has remained a leader in acquiring financing opportunities for the legal marijuana industry, including financing for cannabis real estate, financial institutions may be coming around. Last month, a group of 10 senators wrote a letter to the U.S. Treasury Department that called for “further guidance to financial institutions on their ability to provide services, specifically to indirect businesses that do nothing more than provide services to the state-sanctioned marijuana industry.” Surprisingly, this letter indicated that at present, 3% of the financial institutions in the U.S. were providing financing the legal marijuana industry, which translates to over 360 institutions.

As with past years, 2017’s outlook looks interesting to say the least. Also as with past years, the legal marijuana industry will have to brace itself for challenges at the political, cultural, financial and societal levels. CalCann looks forward to the potential that 2017 brings and remains a committed partner in advancing the legal marijuana industry in California and nationally.