RioCan REIT expects a “gold rush” once Canada legalizes pot this fall

“With retail struggling, it’s good to have any sort of growth opportunities.”

New York Weekend Edition /
Aug.August 11, 2018 02:00 PM

(Credit: James St. John)

RioCan REIT is expecting a ganja “gold rush” to hit Canada’s retail markets in a matter of weeks.

The rosy outlook comes after Ontario’s premier Doug Ford said he was considering changing the province’s approach to distributing marijuana. The previous liberal government announced storefronts selling pot would be managed by government entities just as alcohol is sold in Ontario, however Ford has opened up the possibility of allowing private stores to enter the space, according to Bloomberg.

“There’s no question that whatever rules finally come down, they’re not going to want four cannabis stores at one corner — there’s going to be some control over that,” RioCan CEO Edward Sonshine told analysts on a recent earnings call, as reported by Bloomberg. As a result, retailers will be trying to “stake a claim at the best locations, many of which we own.”

Estimates by JLL say Canada’s burgeoning pot industry will require over 8 million square feet worth of industrial space by 2020. Sonshine predicts 200,000 square feet will be needed in retail.

Edward Jones & Co. Matt Kopsky says he’s seen a similar “gold rush” effect with cannabis occur in Colorado and expects Canada’s legalization will further what is already “a growing segment within the retail market.”

“With retail struggling, it’s good to have any sort of growth opportunities,” he added to Bloomberg. (The analyst has a buy rating on RioCan.) [Bloomberg]Erin Hudson


Related Articles

arrow_forward_ios
 Robert Morse, executive chairman of Bridge Investment Group, one of the major Opportunity Zone investors focusing on real estate.  (Bridge, Stanford)

Opportunity Zone investments got a boost in 2020

Opportunity Zone investments got a boost in 2020
333 Johnson Avenue with Royalton Capital’s Jin Lee, Sciame Construction's Frank Sciame and Normandy Real Estate Partners' Finn Wentworth (Royalton Capital, Sciame, Normandy)

Normandy sued by former partners for hiding Netflix deal

Normandy sued by former partners for hiding Netflix deal
Fabric co-founder, CEO Elram Goren (Getty, Elram Goren via LinkedIn)

Startup wants to bring “micro-warehouses” to vacant retail

Startup wants to bring “micro-warehouses” to vacant retail
Security around Trump Tower to be reduced after 45th POTUS leaves office. (Getty, The Trump Organization)

Fifth Avenue will look different after Trump leaves office

Fifth Avenue will look different after Trump leaves office
(Getty, iStock)

Booster shot: NYC real estate sees salvation in vaccine

Booster shot: NYC real estate sees salvation in vaccine
Before the pandemic, national tenants paid 94 percent of rent. (Getty)

Retail rent collections rebound to 90%

Retail rent collections rebound to 90%
Cindat Capital Management CEO Greg Peng and Hersha Hospitality Trust CEO Jay Shah with 51 Nassau Street (Google Maps)

7 Manhattan hotels head to auction block

7 Manhattan hotels head to auction block
As companies leave Silicon Valley, Austin, Texas is becoming a top destination. (Getty)

Silicon Valley exodus: Where’d everyone go?

Silicon Valley exodus: Where’d everyone go?
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...