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 firm RE/Max Commercial says that Kelowna, B.C., and Edmonton are both expected to see positive commercial growth in the coming months as a result of cannabis legalization.
Prices for commercial real estate in the southern B.C. city are anticipated to see an uptick, as approval for cannabis retail licences will be “extremely competitive” amid high demand once the substance becomes available.
Kelowna, which is located in the Okanagan Valley, has already identified more than 900 potential zoned sites for dispensaries.
Get daily National news
WATCH: Cannabis IQ: Legal marijuana could mean new jobs and cash in Alberta’s economy
Lease rates for industrial spaces in the area are also expected to rise as marijuana companies vie for more space to house their operations, says the annual Commercial Investor report.
- Nova Scotia rolls out new cannabis rules, but Mi’kmaq group defends economic rights
- Teen accused in shooting death of Toronto police officer appears in court
- RCMP cannabis raids won’t ‘hamper’ N.B. First Nations pot sale discussions: minister
- Quebec cannabis use is dropping, but how much depends on age range
-
![]()
Province considers safety changes at cannabis stores -
![]()
Health Matters: Talking to teens about the risks of cannabis poisoning -
![]()
Atlantic Mi’kmaq communities at odds with Nova Scotia government over cannabis -
![]()
N.S. Premier Tim Houston responds to tensions between RCMP and First Nations following recent cannabis raid
This increase comes after Kelowna’s real estate market saw an eight per cent decrease in total sales value for its commercial property year over year.
Meanwhile, it is anticipated that vacancy rates will continue to drop and lease rates will rise moderately for the remainder of the year in Edmonton thanks to the arrival of Aurora Cannabis.
READ MORE: Ontario Real Estate Association calls for stronger protections against marijuana grow ops
New construction, particularly in the Leduc and Nisku areas of the city, has been burgeoning amid the addition of a 74,322 square metre medical marijuana production facility and a 37,161 square metre auto parts and distribution warehouse from Ford Canada.
“Cannabis is adding an additional demand segment to the overall market, for industrial or retail,” said Elton Ash, regional executive vice-president at RE/MAX of Western Canada on Wednesday.
“It’s good news from a landlord perspective.”
Comments
Want to discuss? Please read our Commenting Policy first.