Kelowna first in BC to open legal store
Ephraim Vecina
Canadian Real Estate Wealth
In a new report, RE/MAX Commercial deemed Edmonton in Alberta and Kelowna in B.C. as the up-and-coming hot spots for the cannabis market, with both cities predicted to benefit from positive commercial growth in the months after legalization comes into effect next week.
“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 (October 10).
Edmonton’s vacancy rates are expected to fall while lease rates will enjoy a moderate rise for the rest of 2018, in large part due to the arrival of Aurora Cannabis.
New construction is booming especially in the Leduc and Nisku areas. The latest additions include a 74,322 square metre (800,000 square foot) medical marijuana production facility.
Meanwhile, Kelowna’s commercial real estate prices and industrial space leases are projected to go up, with an “extremely competitive” environment for cannabis retail licences anticipated to arise. The city government has already confirmed more than 900 potential locations for dispensaries.
This is welcome news expected to offset the 8% year-over-year loss in the total sales value of Kelowna’s commercial property.
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