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.
Policy Tailwinds Propel Cannabis REIT Stock for Years to Come
The Business Implications of Legalized Cannabis, Real Estate and Risks
Cannabis Industrial Facilities Generate Premium Rents
Local Municipalities Are Tackling Cannabis Regulation
How Cannabis Is Shaking Up San Diego's Industrial Market
Innovative Industrial Enters Into Long-Term Leases
Curaleaf Holdings Strikes Sale-Leaseback Deal on Six Cannabis Properties
CA Supreme Court Decision Proves There Is No Short Cut to CEQA
Cannabis Net Lease REIT Completes $141M Private Placement
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
