Wendy Berger, CEO and president of WBS Equities talks Economics 101 during a cannabis session at CCIM.

SAN DIEGO—The retail experience for cannabis doesn't have to be bad. So said Wendy Berger, CEO and president of WBS Equities, when talking about her experience people were having when she used to visit dispensaries. "I started looking around for a way to invest in the industry because I noticed it wasn't a pleasant experience. And there is opportunity there."

Berger spent six years trying to find a way to invest in the cannabis industry. "I really could not find an opportunity that I felt comfortable for a while so I went out started talking about it. Ultimately I met with 19 different groups that had formed seeking licenses and learned the industry."

Eventually, using her real estate hat, she placed a bet, and hasn't looked back.

The cannabis industry today is about $10.8 billion. That number is the legal industry, Berger explains, but the illegal business, she says, is estimated to be $80 billion. "The hope is that we are shifting the demand from the black market to the legal market. Tax it and talk about it. Let's have responsible adult use of marijuana. Let's shift this demand."

The structure of the legislation varies state by state, she said, largely dominated by the west coast. "Some states have tip toed in and some watched others." Some states, like Oklahoma, are off to a running start and got it right, while others, like Oregon, for example, have messed up, she said. "Slow is better. Tip toe, work together and understand economics 101."

Oregon, she continued, has gotten it more wrong than right. "They issued licenses like toilet paper. They took a lot of people and put them into business. I am all for expand as you understand supply and demand in your state."

As for the local level in how local laws affect the industry, Berger said that it sets off a feeding frenzy because "for the majority of us, we want to go where we are wanted. As a broker you watch the zoning process etc. and it is complicated enough to get a great project approved. There is a stigma around this industry."

She pointed out that the municipal process is tough. "In some respects, we like the clarity to know if we are zoned in or zoned into a very narrow industrial area, for example. Understanding local zoning is key if you want to add value to your company. You need to understand the view points of the municipality and pick your values."

Check back for more from Berger as she talks about the CRE perspective in the industry. And be sure to check out the related stories below.

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