Merit Real Estate

How will Cannabis Storefronts in Redondo Beach Affect Property Values?

Redondo Beach Cannabis Storefront

The arrival of cannabis storefronts in Redondo Beach is all but inevitable. This inevitability has residents concerned about how the presence of a cannabis storefront will affect the community; specifically, property values.

In mid-December, the Redondo Beach city council voted (4-1) to move forward on a proposal to open two cannabis stores. With the arrival of this new ordinance right around the corner, it will be good to understand the impact (if any) on the real estate market. So let’s answer the question. Will this increase or decrease your home’s value?

Common Concerns about Cannabis Storefronts

There are many stigmas attached to cannabis products and licensed cannabis businesses. One could say It’s just “baked” into the equation or that there should be a much “higher” concern regarding their impact on a community.

Here are a few of our South Bay residents’ concerns regarding the proposed arrival of 1 or 2 licensed weed shops in Redondo Beach.

  1. A constant odor of marijuana
  2. Increased access for underage users
  3. An increase in crime
  4. A decline in home values

Let’s briefly examine these concerns’ validity and discuss possible solutions.

Odor

Marijuana has a powerful and distinctive odor. It’s not really up for debate. Concerns about this strong odor are often at the top of the list when people hear that a marijuana storefront is coming to their town. This is understandable, but there are some nuances to this discussion.

Much of the strong odor associated with cannabis comes from smoking it. Fortunately, for the surrounding residents of a Redondo Beach Cannabis storefront, most of these businesses do not obtain licenses to allow for smoking or burning the products onsite.

Redondo Beach Cannabis Store

Controlling the Smell

It is common for cannabis dispensaries to install commercial air purifying systems. These systems drastically remove marijuana odor and improve the air quality in and around the facility. Another way cannabis storefronts curtail odor is to store and display the marijuana flower in air-tight containers.

As the Redondo Beach city council puts forward ordinance proposals, it is almost certain that the final ordinance will contain provisions and requirements for odor abatement. We advise Redondo Beach residents to contact their city council representative to voice concerns about the potential of an odor nuisance a cannabis storefront may create.

Increased access for underage users

Underage access to cannabis products is a huge concern when a dispensary sets up shop in the neighborhood. In recent years, state laws and local ordinances have created stricter rules and stiffer penalties for marijuana advertisers when it comes to targeting adolescents. Additionally, cannabis shops in Redondo Beach will be required to observe strict policies in place that forbid the sale of medical marijuana to those under 18 and recreational marijuana to those under 21.

Several published studies analyze the correlation between the presence of cannabis retailers in a community and the level of use of cannabis among minors. Here are two studies that observe how cannabis marketing affects underage usage and how cannabis retailers are enforcing state age restrictions and ID policies.

Journal of Safety Research: What is the likelihood that underage youth can obtain marijuana from licensed recreational marijuana outlets in California, a state where recreational marijuana is legal?

National Library of Medicine: Assessment of Recreational Cannabis Dispensaries’ Compliance With Underage Access and Marketing Restrictions in California

Cannabis Storefronts Redondo Beach
A typical display of pre-packaged ‘edibles’ at a cannabis retailer.

 

An increase in crime

There is a lot of varying data regarding an increase in crime due to the presence of cannabis retailers. Overall, the perception of crime increases more than the actual criminal activity.  Much of the data shows that neighborhood crime often goes up by at least 20% when a new cannabis business opens. The data also indicates the level of crime drops back to normal over time. One more thing to note is that in many cases, the cannabis business itself is the target of this crime.

How a Cannabis Storefront in Redondo Beach Impacts Local Law Enforcement

A Redondo Beach cannabis retail store will have obvious challenges when it comes to criminal activity. Common crimes retailers experience are robbery, employee theft, and vandalism. As these types of incidents are reported to local authorities, law enforcement resources may be impacted.

Cannabis Security

When the local ordinance is enacted, there will be specific requirements for security at the location. Likely security requirements include:

  • A. Security Plan Requirements
  • Perimeter Security
  • Lighting
  • Cameras
  • Floor Plan
  • Cannabis and Cash Storage
  • Location Access
  • Daily Limits
  • Employee Training
  • Security Guards
  • Transportation
  • Delivery Security
  • Inventory Tracking
  • Waste Disposal

The Effect a Cannabis Retailer Has on Local Property Values

It is probably no surprise that the answer to this question is debatable. Plenty of home value data relative to the arrival of a marijuana retailer exists, but much of it is extremely subjective. There seems to be a direct correlation between the reaction to home values and the specific history of the neighborhoods adjacent to the cannabis business.

The “10,000 Foot View”

The data shows that property values increase by an average of $4,400 annually. This is according to research compiled in a Tomo.com blog published on April 7th, 2024. The data used was an aggregate of statistics from Colorado, Michigan, and Oregon. Another study conducted by the folks at thezebra.com observed the following.

  • After legalizing recreational marijuana, home prices grew above the national average in 60% of states: Colorado, Washington, Oregon, Michigan, Maine, and Nevada.
  • States that have legalized recreational marijuana longest (Colorado and Washington) have experienced the most housing growth.
  • Despite positive trends in key housing markets, a slight majority of Americans (54%) still wouldn’t buy a home within one mile of a legal dispensary.

Redondo Beach Cannabis Storefront

What about Redondo Beach?

How a Redondo Beach cannabis shop will affect property values will depend primarily on where the shop is located and how the owners operate their business. We believe any value increase or decrease will be negligible. Our local markets are well established. Home values in Redondo Beach and the South Bay have been resilient to socioeconomic changes in recent years.

If you have questions about your home’s value, please contact us at (310) 544-4444 for specific information about your property.

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