From the growing popularity of cannabis has come a multitude of ancillary industries that have developed sustainable, symbiotic relationships with the expanding business. Due to the plant’s specific needs when it comes to production and retail, real estate has become an important aspect for business owners. “That’s because there’s a race among formerly underground growers and new entrepreneurs, as well as starry-eyed wannabes, angling to become rich supplying legal pot,” according to an article in the The L.A. Times.
More and more people are entering the sector every day, and they need the proper real estate to operate in. “Some are looking for prime storefronts to open often upscale retail shops, or in rare cases, cannabis bars where patrons can indulge on the property,” continued the article. “Others want discreet warehouses … where they can grow it.”
Because of this growing niche of cannabis real estate, Ryan George saw an opportunity to start 420Property.com, what he calls, “the Zillow of the Cannabis and Hemp Industry.” The website operates as “an interactive real estate marketplace that connects cannabis business operators with available properties for sale or lease, existing businesses for sale, and professional service providers such as real estate agents/brokers and business/licensing consultants,” George explained.
But, of course, with the plant’s inconsistent legality across the U.S., real estate can be tough to navigate. “Our users’ main challenge is locating a facility suitable for their needs,” George explained. In the past, options were limited. In fact, one of the best places to look was Craigslist under “420 friendly,” but selection was highly limited and landlords were hesitant. “This was the first issue 420Property.com aimed to solve by creating a central marketplace for cannabis and hemp properties (and businesses for sale) to be transacted. Since all of the properties are advertised as cannabis properties, there is no awkward asking or endless searching,” George continued.
Additionally, it isn’t just about finding a physical space. Business owners also struggle to find things like mortgages, escrow services, and other financial services. “Due to the federal regulations that currently classify cannabis as a Schedule I substance, many traditional financial products and services, such as loans/mortgages, insurance, escrow services, and checking and saving are not offered to cannabis and hemp business owners,” George claimed. “This causes difficulties during the real estate transition process. As a result, many specialty services and workarounds have been created to get back to business … This is why 420Property.com strives to seek out the best and most reliable services in the cannabis and hemp industries, such as Skyfront Insurance – which is an innovative insurance provider in the cannabis and hemp space.”
As the cannabis industry expands, so will adjacent sectors. However, with constantly changing regulations state-to-state, and without federal legalization, it’s difficult to predict what the future holds. Still, these ancillary companies, like 420Property.com, act as a support system for this burgeoning industry, helping startups and business veterans alike navigate the murky waters.