Should stores that sell pot, vape pens or CBD oil operate at shopping centers? This once controversial subject is now becoming more acceptable. Let’s see what others in the industry think…
Survey results reveal mixed attitudes about such businesses among the 5,200 brokers, lawyers, retailers and landlords who responded.
“We were curious as to the perception in the industry about whether these should be permitted uses,” said James Savard, EVP of leasing and management at Metro Commercial, which conducted the online survey.
Metro Commercial manages about 75 shopping centers in the Northeast and leases space at roughly 400 properties, totaling upwards of 30 million square feet.
Recreational cannabis, already legal in 10 U.S. states and Canada, appears to be on the fast track in two important markets: Pennsylvania and New Jersey.
The popularity of hemp-derived, non-psychoactive CBD continues to affect shopping center leasing across North America, Savard notes.
A Cohen & Co. survey predicts that the U.S. CBD market could hit about $16 billion by 2025.
Asked whether CBD stores should be considered permissible tenants in shopping centers, 84 percent of the survey respondent brokers, 68 percent of the property owners and 78 percent of the retailers replied in the affirmative.
Metro Commercial asked brokers and retailers whether they would support the inclusion of a CBD store in a retail tenant lineup, and about 80 percent of the brokers and roughly 70 percent of the retailers said they would.
Asked whether they consider vape products and stores to be mainstream and generally acceptable among consumers, 68 percent of the brokers and 58 percent of the retailers and 68 percent of the owners responded that they did.
The respondents were more accepting of CBD and cannabis retailers than they were of vape stores, since many marijuana dispensaries are upping their game. Now, some vape stores are presenting a first-class, ‘fine jewelry’ approach to merchandising.
Metro Commercial asked respondents whether they would support including cannabis-related retail stores if it were legal in their state. The number decreased to 48 percent for the landlords.
“Landlords have to think a lot harder about the effects of any one tenant on the others, as well as security or other risks,” Savard said.