According to Fortune Business Insights' “Cannabis/Marijuana Market, 2019-2026” report, which was released earlier this June, the global cannabis market size continues to gain momentum. Per the report, the cannabis market was estimated to be USD $10.60 billion in 2018. Fast forward to 2026, and the market is expected to be USD $97.35 billion, exhibiting a compound annual growth rate (CAGR) of 32.92% during the forecast period.
With the recreational use of cannabis now legal in 17 states and the District of Columbia, and east coast states like New York, New Jersey and Virginia transitioning from a medical-only market to adult-use, the still-emerging sector is experiencing record-high demand for cannabis-ready real estate.
However, for business and property owners operating in the space, federal laws have made securing financing for expansion and improvement projects difficult. Making matters more complicated, build-outs of cannabis assets can cost millions and include highly specialized designs such as laboratories and cold storage for products. Even when owners and operators secure financing, the closing process can be lengthy. For entrepreneurs in the fast-moving space, these challenges and a need for faster financing options have often resulted in operational delays, costing cannabis owners and operators millions in lost sales or higher rents.
Southern California-based Pelorus Equity Group, a pioneer in cannabis lending, is looking to change the cannabis commercial real estate landscape. The firm, which has been providing value-add bridge commercial real estate loans in the cannabis space for the last 5 years, has been on a mission to ease these burdens for owners and operators while it draws in a new class of investors …