Cannabis panel at CCIM's recent Global Conference held here in San Diego.
SAN DIEGO—According to panelists at the recent CCIM Global conference, from a commercial real estate investor perspective, access to capital remains "a real challenge" for cannabis real estate. According to panelists, the typical cannabis entrepreneur can't just go to a bank and ask for a small business loan. "There is no traditional access to debt."
The access to equity is as much of a problem too, panelists explained, with one noting that as long as it remains federally illegal, it will continue to operate a little shady, (in terms of what you do with cash). But according to Wendy Berger, CEO and president of WBS Equities, from a real estate perspective, that is exactly where the real opportunity is.
"Bringing real estate capital into the business as a form of financing is the opportunity," she said. "We need real estate investors and brokers in this business bringing capital to deals because we cannot go to banks. This lack of access to capital is creating inefficiencies. From chaos comes opportunities."
And the opportunity is tremendous, she adds. "Your pool of available properties is limited. If you are looking for a retail property, you have to do your due diligence ahead of time. And then you need to know your landlords. For the brokers and landlords out there, this is a real opportunity to add value to your clients. There is going to be significant opportunity for years to come for those who are willing to take the time and educated themselves."
Be sure to check out the related stories below on the subject.
Capitalizing on Cannabis, Understanding Zoning Remains Key
Northeast Governors Hold Cannabis and Vaping Summit
Policy Tailwinds Propel Cannabis REIT Stock for Years to Come
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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.
