Legalization of cannabis will play a significant role in the demand for commercial and industrial space throughout British Columbia. Being an agricultural product, Colliers explores the potential for cannabis growers to utilize the Agricultural Land Reserve (ALR) as a source of affordable land for their operations.
The demand for industrial land in Metro Vancouver has driven historically low vacancy rates and higher land costs. Current ALR regulations state that only medicinal marijuana growers can establish operations on ALR lands which would force growers specializing in recreational cannabis products to search for suitable facilities in Metro Vancouver’s already constrained industrial zones, should cannabis legalization occur as expected. The added pressure from cannabis growers on industrial land in Metro Vancouver could further drive up prices and reduce business opportunities for all industrial land users, stifling economic growth.
Modifying ALR restrictions to include recreational cannabis operators on ALR lands, particularly on the least arable lands of BC, could bolster the economy and increase ALR land usage while benefiting local landowners and operators.
If restrictions allowed for recreational cannabis growing facilitates on ALR land, owners would have a new opportunity to utilize their land. In doing so, land owners create employment opportunities, tax revenues, and growth opportunities while reducing the pressure on Metro Vancouver’s industrial market. The ALR lands offer a latent opportunity that could be advantageous to all parties.
Cannabis & ALR - Keep the Land Cultivate the Future