In a recent episode of the America’s Commercial Real Estate Show, the host interviewed Anthony Coniglio, CEO of Newlake Capital Partners, a company specializing in the niche market of cannabis real estate. The interview delved into the state of the commercial real estate industry, the impact of tariffs and fluctuating interest rates, and the overall real estate forecast. This article provides a comprehensive review of the conversation in the podcast.
The episode opened with the host thanking the show’s sponsor, the C5 Summit, a notable event in the commercial real estate industry. The host then introduced the day’s topic: the state of the commercial real estate industry in the face of various economic factors such as tariffs and interest rates.
The guest, Anthony Coniglio, CEO of Newlake Capital Partners, shared insights into his company’s unique focus on the cannabis sector. New Lake Capital Partners, trading on the OTC exchange under the ticker NLCP, is the second-largest owner of cannabis real estate in the US, boasting 34 properties across 12 states. The properties primarily consist of cultivation facilities and dispensaries.
In discussing the legalization trend of cannabis, Coniglio noted the steady growth of the industry. He cited polls showing that approximately 90% of Americans believe cannabis should be legalized for medical purposes, and approximately two-thirds support its legalization for recreational purposes.
Despite its growth, Coniglio acknowledged certain challenges faced by the cannabis industry, including high debt acquired during a growth spurt in 2021 and increasing competition from hemp-derived products. However, he remained confident in the long-term growth trend of the industry.
The conversation then shifted to the difficulties of banking for cannabis businesses due to federal restrictions. Despite these challenges, Coniglio remained optimistic about the cannabis industry’s growth, citing the increasing acceptance of cannabis as an alternative to pharmaceuticals for various health conditions.
In addition to discussing the cannabis sector, Coniglio also shared his views on investing in commercial real estate. He expressed a positive outlook on the state of commercial real estate, attributing this to the slowing pace of new developments due to rising interest rates and the prospect of robust demand for existing real estate.
Despite the hurdles faced by the cannabis industry, Coniglio believes it offers a unique and potentially lucrative niche within the commercial real estate market. The growing acceptance of cannabis for both medical and recreational use, coupled with the limited supply of specialized real estate, presents a compelling investment opportunity.
In conclusion, the podcast episode offered a rich discussion on the current state and future prospects of the cannabis sector within the commercial real estate industry. The insights shared by Anthony Coniglio highlighted the sector’s unique challenges and opportunities, shedding light on a niche market that is likely to play an increasingly significant role in the broader commercial real estate landscape.
The conversation reinforced the importance of staying informed about evolving trends and potential growth areas in commercial real estate and emphasized the potential of niche markets like cannabis real estate. As the industry continues to evolve, such insights will be crucial in guiding investment decisions and strategy development.