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Industry News

Canada’s cannabis legalization will boost occupancy, rents: RioCan

August 9, 2018

Canada’s legalization of recreational marijuana in October will spur a retail real estate “gold rush,” boosting demand and rent, says RioCan Real Estate Investment Trust CEO Edward Sonshine.

Specifically, it could create demand for 200,000 square feet of retail space, Sonshine said in an earnings call on Wednesday, as reported in Bloomberg. And that number could shift, depending on government regulations, he noted.

RioCan CEO Edward Sonshine: Cannabis legalization will bring leasing 'gold rush'

Major retail landlords could have an important role to play in the orderly provision and distribution of such stores.

“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,” Sonshine said. The so-called gold rush will come, he noted, as retailers begin “looking to stake a claim at the best locations, many of which we own.”

By Edmund Mander

Director, Editor-In-Chief/SCT

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