Should OC Brokers Jump on the “Green Rush” Bandwagon?

Jack Haley

ORANGE, CA—Prop 64, the California Marijuana Legalization law that passed in November 2016, will increase industrial property values for the short term in North Costa Mesa and parts of Santa Ana by up to 40%, and industrial property rents in these areas could double, Lee & Associates principals Jack Haley and Greg Diab tell GlobeSt.com.

In most Orange County cities commercial cannabis businesses will continue to be prohibited, the principals tell us. Locally, a few cities have allowed for commercial cannabis businesses to open in the industrial zone of the city only, but if cities allow cannabis dispensaries to open in retail-zoned properties, it could increase rents and values for those properties. For the short term, they say, the law will increase industrial property values in north Costa Mesa and parts or Santa Ana by up to 40%, and industrial property rents in these areas could increase by 100%. The classes of properties affected will include B and C properties, they add; most of the buildings in these zones would be considered class-B or -C.