11 April 2019

Leamington land prices are rising due to pot growers Aphria Inc., which set up shop in a former Heinz ketchup-processing plant.

At the same time, Smith Falls real estate has become more expensive because of Canopy Growth Corp, owner of the popular Tokyo Smoke brand, following its rebound of a former Hershey’s factory.

Earlier, both markets had been facing a sharp slowdown, caused by the previous manufacturer departures and, as a result, high unemployment level.

However, the arrival of cannabis-production facilities is causing a recovery.

“They’re attracting employees from other areas,” – said Kruti Desai, manager at Altus Group.

According to Desai, these companies need specialized workers to operate their high-tech growing facilities.

The cannabis companies also support the local economy as they create more opportunities for other businesses and services.

Of course, real estate demand caused by the industry may lead to stronger homebuilding activity in relatively passive markets, but still not enough time has passed to determine the real influence on residential construction.

Nevertheless, the impact of cannabis retailers on real estate prices may have two sides.

Zoocasa poll, conducted in October 2018 before the national legalization, says 42% of Canadians expect cannabis dispensaries to drag the home prices down.

“It could be an issue for some residents, and we’ll certainly watch such areas closely”, –  Desai noted.