SEPTEMBER 18, 2026 – This is only a sampling of two. If you are an appraiser and have some examples (confidentially, of course) I can add to this sampling, please contact me at GeorgeRMann@Aol.Com. Thanks.
Property #1 – This is a new industrial building that was leased to a tenant that used it as a packaging facility. The value conclusion in 2024 was $3,500,000. The tenant defaulted on the lease and the property was subsequently appraised at $1,980,000 in early 2026. This is a 43% reduction in value. Or looking at it the other way, the cannabis effect showed a 77% premium. The same appraiser performed both appraisals. And time is not a significant issue.
Property #2 – This property was renovated in 2003. It has two cannabis-related tenants – a retail dispensary store and a medical doctor. In the same appraisal, the appraiser indicated the value under a non-cannabis use was $1,200,000. The value based on the in-places leases was $1,850,000. This indicates a 54% premium. Or a 35% reduction in value.
CONCLUSION – Roughly, the data suggests a 50% to 75% premium for having a cannabis operation. The question becomes is that premium Intangible Value? As with national tenant leased properties, above market rent cannot add value to the underlying real estate. All because a tenant has a cannabis business, why would that change the value of the real estate?
Hopefully, I can add to this over time and see if there is a consistent range of data.

The Mann