Cannabis usage is officially legal in California—and demand is high for real estate to support the new industry, from retail dispensaries to industrial growing facilities. While there are ample opportunities in the space, there are also challenges ahead. Regulations and licensing guidelines are still being determined, and Jeff Rinkov, president and CEO of Lee & Associates, says that the first six months will be like the Wild West. We sat down with Rinkov for an exclusive interview about the new space and how it will impact the real estate market.

GlobeSt.com: Cannabis legalization is officially legal in California. It is early, but what are your expectations for the market this year?

Jeff Rinkov: The demand is tremendous for cannabis real estate, and it is going to be a little bit overwhelming. It is going to be the Wild West. It is going to be an absolute may lay from January to June until the city or the county or the state gets a hold of it. The problem is that there are no resources to manage a completely new multimillion-dollar industry. We are going to try to manage it with the same staff and the same business licensing process and the same taxation laws.