The legalization of marijuana is having an effect that is far greater than a clean police record. Just as we have seen entire neighborhoods revitalized with the simple addition of a Whole Foods store, real estate prices are also affected by the new influx of cannabis-related companies that are setting up shop in cities like Los Angeles. Will pot propel the next real estate boom?
Cannabis Could Be the New Catalyst for Gentrification
Many of America’s formerly downtrodden areas are currently experiencing some form of gentrification. It can start with the addition of a Trader Joe’s, Whole Foods, or Starbucks location. After that, it is not long before slums get replaced with yoga studios, expensive coffee shops, and vintage cupcake stores. Today, we are starting to see the rise of a new “gentrification catalyst” in the form of cannabis.
Cannabis Could Finally Fix Downtown Los Angeles
Despite being the financial center of the city, Downtown L.A. has long been a symbol of failed social programs and forgotten people. Today, though, we are starting to see a new breath of life via the cannabis industry.
When the Green Street Agency building opened, new cannabis-related employees called the area home. Millions of dollars are now flooding the neighborhood, with other cannabis companies looking to take advantage of low real estate prices in the area.
Cannabis and Real Estate Both Share Hope in Blockchain Technology
Another area that cannabis and real estate share is hope in blockchain technology. The cannabis industry will use blockchain tech to authenticate products, get clear timelines, store and share interactive product information, and help promote customer engagement in a more trustworthy way.
With blockchain tech in real estate, the general property purchase process will also get easier. With platforms such as Propy, the settlement process is automated via smart contracts. Propy’s system instantly knows when the parties sign their paperwork, when the wire transfer initiates and completes, and when the deed ownership is recognized as cleared. Here, smart contracts enforce e-recording and the release of funds. Such automated systems can help homebuyers save money on their real estate transactions.
Between supply chain management and automated settlement processes, blockchain technology will impact cannabis and real estate as the two industries continue to cooperate in unexpected ways.