Canada’s industrial real estate sector is as hot as it’s ever been and the legalization of recreational pot will only add to the demand.
The country’s eight biggest weed companies will require more than 8 million square feet of space for growing marijuana by 2020, up more than fivefold from current levels, according to a report from brokerage Jones Lang LaSalle Canada. The estimate, which excludes logistics and distribution centers, would be about the size of Amazon.com Inc.’s Seattle headquarters, which houses about 40,000 workers across multiple buildings.
Canada in August or September is slated to become the first Group of Seven country to legalize pot for recreational use nationally.
The country’s burgeoning pot industry, which includes about 85 companies with a combined market value of about C$30 billion ($23 billion), will put more pressure on the country’s stock of industrial real estate amid a booming economy and the shift to online shopping. The industrial vacancy rate hit 3.9 percent at the end of 2017, the lowest since 2001, with rents up 15 percent in Vancouver and 7.3 percent in Toronto from 2016, according to Cushman & Wakefield.
By Natalie Wong – https://www.bloomberg.com/