Cannabis Real Estate:
The economy of cannabis is both immense and expanding. There are many steps (and licenses) required to bring product to market: which licenses or properties are predicted to be more stable or high performing? While the cannabis economy is growing at a staggering rate (Arcview conservatively predicts legal cannabis to be a $32B global market by 2022[1]), and property investment opportunities abound, it remains true that some properties will outperform others, and not all properties will be winners. So, as a real estate and cannabis investor, it’s important to include a sector analysis as you make investment decisions.
At a recent Arcview Investor forum in San Francisco (July 20–22, 2018) Canopy provided a noteworthy cannabis sector analysis, categorizing segments as weak, moderate, or strong. While the table below isn’t a guarantee of performance — in any direction — within a particular sector, it provides useful information when making investment decisions.
While BaseCanna’s vertically integrated ecosystem will strategically incorporate all sectors, our decision to initially focus our real estate acquisitions in cannabis manufacturing & processing is a confirmed strategic choice. Our facilities are designed to be best in class for volume manufacturing, efficiency, sustainability and security. Moreover, our facilities are designed to encourage and sustain organic collaboration amongst operators: we don’t just build campuses, we build community.
What are your thoughts on the state of the industry?
Let us know below! :)
[1] Arcview Market Research & BDS Analytics (2018). The State of Legal Marijuana Markets, 6th Edition. Arcview Market Research.
