Commercial Real Estate and Marijuana: High Times, High Prices
Recorded On: January 12, 2018
Air Date: January 15, 2018
Most segments of the Lane County commercial and industrial real estate market are doing well, but prices and rent are rising. One new industry - cannabis related businesses - is having a disproportional impact on the market and availability.
Although there is ongoing disagreement about whether or not cannabis related businesses are forcing other businesses out, there is evidence of financial pressure to convert space from other uses to the cannabis industry. Countering this trend, some owners are reluctant to rent to cannabis operations for legal or other reasons. The cannabis industry requires industrial space for growing and processing as well as commercial space for retail operations, testing laboratories, and other related services. Prospective cannabis growers and retailers have been known to offer more than the asking price for access to space.
One restriction that has been discussed by the City of Eugene to address a plethora of retail cannabis locations is a 1000-foot buffer between retail outlets. The Eugene City Council considered and rejected this idea, but there is movement within the city and the council to reconsider. Other municipalities in Oregon have been engaging in the same debate. Regardless of their opinion on cannabis, most people agree that legal cannabis is here to stay and measures are needed to integrate it into the framework of existing businesses and with the community in general.
John Brown has been a commercial real estate appraiser since 1977. In 2006, John joined Alan Evans and Jeff Elder as a full partner in the firm now known as Evans Elder Brown & Seubert commercial real estate.
Casey Houlihan is the Executive Director of the Oregon Retailers of Cannabis Association (ORCA). He also handle Pacific Northwest development for BDS Analytics, which is a market research and data analytics firm operating in the cannabis space. Casey is a political consultant and organizer who has been actively involved in developing cannabis policy in Oregon for years. He led the statewide field campaign for Measure 91 to legalize recreational use of marijuana in Oregon.
Program Coordinator: Ralph Pledger
Copyright KLCC, 2018