Marijuana Real Estate in California Owners Will be Facing These Issues This Year

So begins a new year for the marijuana industry. Although it’s made some tremendous headway for owners of marijuana real estate in California, there are some issues that they will have to grapple with this year.


Eight states have approved marijuana measures this November, and with markets in Ohio, Maryland and Pennsylvania coming aboard soon, the time is ripe for expansion into new markets. Industries across the board are looking for the opportunity to chisel their way into the market, whether it’s real estate in Colorado or marijuana real estate in California.

Expansion could present difficulties however, for businesses that might not have the resources to invest that go along with expansion. These include real estate, hiring knowledgeable staff, and building construction. Expand too soon and you might find yourself strapped for cash too soon. If companies owning marijuana real estate in California try to expand too soon, they may find themselves overstretched.

Falling Prices

We learned in marketing 101 that oversaturation will force down the prices of goods and services. Growers and retailers in Colorado and Washington have already learned this lesson. So, another issue property owners will have to consider will be prices falling due to oversupply.

Oversaturation forces down prices of goods and services, a lesson growers and retailers in Colorado and Washington have already learned. As such, another issue facing the industry in 2017 will be falling prices brought on by oversupply.

Wholesale cannabis prices in California have been hovering per pound, but as licensing expands and more companies get operational, prices may fall, forcing operators to pivot strategy, sell out, or close up shop.

Compliance and Standards

The federal authorities are not going to interfere with the marijuana industry with issues like ethics, a disregard for safety, and local and state cannabis laws. If you own a marijuana dispensary in California, and are operating without guidelines or internal checks and balances, this may become a huge problem. What’s more, it’s up to the industry to legitimize itself. Operate out of bounds, and you may show people that this can’t be done safely and responsibly.

Defining Your Brand

Whether your business stays small, merges or expands, you will need to establish a brand identity that sets you apart, defining and developing your business. Boutique operators, for example, still have a lot of room in the market, but if you try to do this you need to be savvy about the way you brand yourself and what niche you are serving.

Retailers are becoming picky about what products they carry, so one idea is to create a product in a sustainable or environmentally friendly way. People will look for your product if it sticks out, not just for the cheapest product.

The Big Picture

Due to the new nature of the marijuana market, owners of marijuana in real estate in California will have a lot of issues to consider. These are just a few. Make the right decisions, and do things the right way, and chances are, you’ll succeed.

Leave a Reply