Prospect of legalizing weed in Illinois has developers, landlords seeing green Legalization would also put the hot local industrial market “over the top,” though Chicago could be too pricey, experts say
Deena Zimmerman (Credit: iStock)
After Illinois legalized medicinal marijuana in 2014, Deena Zimmerman traveled to Colorado to learn how the marijuana industry was intersecting with the real estate market.
The vice president at commercial brokerage SVN visited a town on the outskirts of the Denver metro area, a once-rundown place “where the tumbleweeds were rolling,” she said.
“Now it’s thriving,” Zimmerman said. “There’s cool apartments, cool retail. But cannabis came first.”
Gov. J.B. Pritzker already signaled his strong support fo爱上海同城手机版 r legalizing recreational marijuana and powerful House Speaker Mike Madigan says he is on board. While draft legislation has been proposed, the state Legislature has not formally taken up the measure.
What is clear, industry experts say, is that the law would be a boon to the real estate industry.
Legalized recreational weed would particularly benefit Chicago’s hot industrial market and it could help areas that have missed out on the city’s recent warehouse development and leasing boom. That is if the pitfalls of a nascent industry that’s still illegal at the federal level can be overcome.
“Industrial is really hot right now,” Zimmerman said. Legal marijuana “is going to to put it over the top.”
A new demand
Although recreational marijuana legislation is still in its infancy, Illinois lawmakers already released an outline of what a recreational marijuana industry could look like. In the proposal, possession of up to 30 grams of pot would be legal, local governments could opt out of the new law and landlords could restrict or ban the use or cultivation of marijuana on their properties.
Because the product cannot be tra爱上海同城论坛 nsported over state lines, marijuana would have to be grown in-state. And it would have to be sold from dedicated retail storefronts. Where it can be grown and sold has yet to be determined, but that decision will play a huge role in a marijuana-related real estate market, sources said.
The Chicago-area industrial market is experiencing highs not seen in years. A new industry that needs ample room for growing and storing could contribute even more demand.
“I think there’s about to be a pretty big boom here,” said Tim McGraw, CEO of California-based Canna-hub, a development firm focused solely on the marijuana industry.
Industry players from around the country have taken notice.
McGraw founded Revolution Enterprises, one of the the first companies to receive a marijuana growing license for Illinois’ nascent medicinal program. He spent 38 years in the state, but left in 2016 for California, which legalized marijuana two years later. Property values have risen in some areas of Los Angeles County because of high demand from cannabis industry tenants and low supply of landlords willing to work with[……]