TORONTO – Two cities in western Canada have been named the next commercial real estate hot spots for the cannabis market, according to a report.
Real estate company Re / Max Commercial expects Kelowna, BC and Edmonton to see positive commercial growth in the coming months due to the legalization of cannabis.
Commercial property prices in the southern British Columbia city are expected to rise as the approval of retail licenses for cannabis will be “extremely competitive” once the fabric becomes available, given the high demand.
Kelowna, located in the Okanagan Valley, has already identified more than 900 potential pharmacy locations.
Industrial space rental rates in the area are also expected to rise as marijuana companies vie for more space to run their operations, according to the annual Commercial Investor Report.
This increase was due to the Kelowna real estate market’s total sales value of its commercial properties dropping eight percent year over year.
Meanwhile, vacancy rates are expected to continue to decline and lease rates to rise moderately for the remainder of the year in Edmonton thanks to the arrival of Aurora Cannabis.
The new build, particularly in the Leduc and Nisku neighborhoods, was reinforced with the addition of a 74,322-square-foot medical marijuana manufacturing facility and a 37,161-square-foot auto parts and distribution warehouse built in 2000 for Ford Canada.
“Cannabis adds an additional segment of demand to the overall industrial or retail market,” said Elton Ash, regional executive vice president at Re / Max in Western Canada on Wednesday.
“It’s good news from the landlord’s point of view.”
