The legalization of marijuana in the U.S. has led to a real boom in the cannabis industry. Innovative Industrial Properties was founded in 2016 and was the first real estate investment trust (REIT) to specialize in operational cannabis facilities.
Recently, however, it was announced that a new rival to Innovative Industrial Properties is entering the market. NewLake Capital Partners’ new marijuana REIT plans to enter the market with a portfolio of operational cannabis assets valued at nearly $200 million.
Demand for ready-to-use cannabis facilities is high as legalization advances in the U.S. Marijuana REITs offer investors a new way to profit from this growing market. It remains to be seen how the competition between the two ventures will play out.
New Marijuana REIT Rival for Innovative Industrial Properties
Innovative Industrial Properties, the largest marijuana REIT in the U.S., will soon have a new competitor. The company offers cannabis businesses a financing option through sales and leaseback agreements of operating facilities. The new rival is expected to offer similar services to take advantage of the growing legal marijuana market.
The marijuana industry has seen significant growth in the United States in recent years. 35 states have legalized the sale of medical marijuana and 15 states have legalized the sale of recreational marijuana. This has created a huge market for companies like Innovative Industrial Properties, which sell operating facilities at a higher price and then lease them back to marijuana businesses.
The new competitor is expected to try to gain a foothold in this highly competitive market and reduce Innovative Industrial Properties’ market share. Competition will lead to a more attractive offering for marijuana companies, which could ultimately lead to lower prices and better terms for cannabis companies.
- The marijuana industry in the U.S. is growing rapidly, creating a huge market for innovative financing solutions such as those offered by marijuana REITs.
- The largest marijuana REIT in the U.S., Innovative Industrial Properties, will soon have a new competitor.
- The rival is expected to offer similar services to capitalize on the growing legal marijuana market.
- Competition in this market will ultimately lead to lower prices and better terms for cannabis companies.