Will Cannabis Companies Mean Big Business for Canadian CRE?
The Canadian Parliament recently approved a new law to legalize the recreational use of cannabis. This legislation means consumers will be legally able to buy the drug from brick-and-mortar and online stores while creating demand for vast indoor growing spaces. JLL’s recent report, Fertile Ground for Canada’s Marijuana Industry, estimates that growers will need 8 million square feet of indoor space by 2020, which is more than seven times the amount of industrial space that was available at the end of 2017.
It’s not just warehouses that will feel the impact from the growing cannabis industry. As the projected $10 billion industry grows, companies are expected to hire more people, ultimately pushing up demand for office space. Additionally, cannabis shops are likely to start proliferating around the country as the law goes into effect, shaking up the retail industry.
The report states, “The cannabis story may begin with the industrial sector, but it surely won’t end with it alone,” and predicts Canada has a long runway of growth up ahead.