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Do Dispensary Openings Impact Rents for Neighboring Retail?

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  • Liuming Yang
  • Jonathan A. Wiley

Abstract

This study is among the first to evaluate the impact of dispensary openings on rents of nearby retail spaces. Considering matched samples of new lease signings on retail space across the first States to permit recreational marijuana sales, we find evidence of negative and significant impacts to retail rents in close proximity to dispensary openings. Retail rents in close proximity decrease significantly by an estimated −15% to −29% following dispensary openings relative to comparable properties further away. The rent differentials are most pronounced at the closest Inner Radius and diminish by distance from the dispensary. The greatest negative rent impacts concentrate among the largest dispensaries, suggesting a retail gravity effect, and among those in the most walkable locations, aligning with spillover effects.

Suggested Citation

  • Liuming Yang & Jonathan A. Wiley, 2026. "Do Dispensary Openings Impact Rents for Neighboring Retail?," Journal of Real Estate Research, Taylor & Francis Journals, vol. 48(2), pages 147-171, April.
    • Handle: RePEc:taf:rjerxx:v:48:y:2026:i:2:p:147-171
    DOI: 10.1080/08965803.2025.2464458
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