Quick Takeaways

  • Studies largely show an increase in residential property values in states with legalized marijuana.
  • Property managers must consider both state and federal laws when developing marijuana related policies.
  • Investors are increasingly interested in cannabis businesses.
  • Brokers should be aware of state laws around employee marijuana use and protections against discrimination.

As more states legalize marijuana use for medical and recreational purposes, the real estate industry has already seen an impact. Studies largely show an increase in residential property values in states with legalized marijuana. In particular, homes near retail dispensaries mostly saw increases in values compared with homes further away.

Property managers must consider both state and federal laws when developing marijuana related policies. Multifamily property managers may prohibit smoking of both marijuana and tobacco in their buildings. If leasing property to a cannabis business, understand special lease provisions that may apply.

Investors are increasingly interested in marijuana establishments, particularly after dispensaries’ positive performance throughout the pandemic. Recently, several cannabis REITs (real estate investment trusts) have been established to help investors capitalize on the potential growth in this area.

Brokers may be curious how changing marijuana laws affect their employee policies. Be aware of your state’s cannabis use laws, as well as any laws that protect employees’ off duty use. Stay up-to-date on pending legislation in your state, as new marijuana laws are being considered with some frequency.

This Window to the Law video examines the legal issues that a real estate professional may encounter as marijuana becomes legal for both medical and recreational use in many U.S. jurisdictions. View a slide presentation here.

See References for more information.

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