Non-Traditional Businesses Fill In Spaces Post-Recession
The recession had a major impact on real estate, leaving a glut of commercial space that traditional businesses couldn’t fill post-recession, that has allowed non-traditional businesses to occupy the space.
One of the more notable examples is the cannabis industry which has grown exponentially over the last decade.
“The cannabis business is interesting because it has been increasingly the focus of more traditional businesses looking at it and saying ‘I think there’s a space for us here,’” said Mark Stapp, a professor of real estate at ASU. “You know it shifts from being this cottage industry to being worthwhile for investors that deploy a lot of money.”
This week, Vacone Real Estate, a California company with offices in Phoenix, signed a 15-year, $50 million lease agreement for build-out cannabis fulfillment centers in Arizona, Washington, Oregon, California and Nevada.
Stapp also said the recession was a boon to goodwill industries, like churches and charities that otherwise wouldn’t qualify for traditional spaces.
“So you saw this in particular in the retail industry where non-traditional uses began occupying retail space. And they would have never been approved as occupants before the recession, but because you own the space and you are trying to generate revenue, you are willing to accept things that are different if you can’t get the normative.”
Stapp said the real estate market is more open but still cautious as economic uncertainty continues.