There is a new trend in the real estate market. According to the Associated Press (AP), cannabis real estate might be the new Gold Rush.
As more states continue to legalize recreational and medical marijuana use, the cannabis industry continues to expand at a rapid rate. According to recent data, the legal marijuana market will be worth nearly $150 billion by the year 2025. As a result, investors across the United States and Canada are seeking out real estate related to the cannabis sector.
While some investors are interested in using their lands to grow the actual marijuana plants, others are interested in using the land for state-regulated cannabis factories. The AP reports investors are drawn to states, such as Colorado, with thriving state economies and a large population interested in attaining either medical or recreational marijuana. Other states in the report include Arizona, California, Florida, Maryland, Massachusetts, Nevada, New Mexico, Ohio, Oregon and Vermont.
However, real estate transactions involving land purchased for cannabis production can be complex. Last fall, a Colorado couple argued in the Colorado Supreme Court that a neighboring cannabis business was hurting the property value of their home. However, the federal jury found that the federal anti-racketeering law did not prohibit the neighboring company from growing cannabis.
There are federal and state laws that residents must follow if they wish to grow cannabis in Colorado. If you are considering purchasing real estate for cannabis production or related uses in Colorado, it can be beneficial to consult with an experienced Colorado attorney to discuss your next steps.