The cannabis real estate investment market has emerged quickly,but it is still in its infancy. Commercial real estate investmentinterest is expected to grow—but a lot will depend on cities toclarify and iron out and bumps in the regulatory process. For now,many investors are waiting on the sidelines, and California citiescould determine the long-term viability of the potentiallysubstantial niche investment market.

“We expect interest to remain high, and for regulatory processesto normalize and become more predictable,” SethWeissman, a partner at Jeffer Mangels Butler &Mitchell, tells GlobeSt.com. “Much depends on each city'scomfort with cannabis and the number of operations that they willpermit in their city.  Long-term growth will depend, inpart, on the size of the cannabis user market and potentialderegulation at the federal level.”