There are a number of factors that play into what price to list your 420 friendly properties for cannabis use. The best place to begin is for us to find comparable properties in your area and understanding what they sold for, when they sold, and the differences between those properties and your own. We compare your property to other properties on the market and pay close attention to lease rates, amenities, and location.
For commercial properties, another factor to consider is the Capitalization Rate (or CAP rate) – This is the rate of return on your property, and takes the annual income of the property and divides it by the amount you invested. For example: If your investment in a property is $1,000,000, and the annual income on the property is $100,000, the CAP rate is 10% ($100,000 divided by $1 million). Individual factors, specific markets and the use of the property will impact what the CAP rate is for your property.
Learn more on our blog about why investing in cannabis is a wise move right now.