Call me old fashioned, but I never expected to see Virginians welcome cicadas back to their neighborhoods with open arms – and mouths – after the insects’ 17-year hibernation. This time around, there seems to be more talk of cooking and eating the invading swarms! Even before the crispy critters came out of their nesting places, the Washington Post was quick to report in its May 8 issue the best ways to catch, cook and snack on cicadas, likening them to soft shell crabs. 

Similarly, after more than 70 years of trying to eradicate the evils of marijuana, and demonize those who were caught possessing it, Virginians shifted gears this year and decided that it should be legalized. For local residents it may be reminiscent of the abandonment of alcoholic prohibition when Virginia Gentleman was discovered to be “one smooth bourbon.”  

But such news may not come as a surprise to Realtors®, who are adept at navigating changing preferences, environmental issues and regulations that impact the marketplace.   

The agricultural roots of hemp production, which also yields marijuana, actually run deep in Virginia history. George Washington was among several early Virginia farmers who made good money devoting acreage to growing hemp, although the folks down at Mt. Vernon are quick to point out the variety grown there was not for the enjoyment of the local residents, but rather for its strong fibers that could be used for life’s necessities such as rope. 

Under legislation recently signed into law by Gov. Ralph Northam, Virginia became the first state in the South to join with 15 other states to legalize growing and using marijuana under certain circumstances. In Virginia, the new law takes effect on July 1 and among other things it allows adults at least 21 years of age to possess up to one ounce of marijuana and to cultivate up to four plants for personal use. 

Gov. Northam, a pediatric neurologist who also spent eight years as an officer in the U.S. Army’s Medical Corps, had earlier advocated various provisions for the medical uses of marijuana. In a statement proposing the changes, he predicted the legislation would “ensure we do it with a focus on public safety, public health and social justice.” 

Sensing a growing impact on both residential and commercial Realtors® resulting from the legalization trend, the National Association of Realtors® (NAR) in 2020 issued a report: Marijuana and Real Estate: A Budding Issue. 

“If marijuana is legal within a state, the product is grown, harvested, stored, sold and consumed within state lines,” NAR noted, adding that its legalization will surely impact the real estate industry. “Residential practitioners are navigating an environment of marijuana being used and/or grown within rental properties, homeowners associations creating rules about consumption and growth, and title questions selling a home where the product has been grown and consumed.” 

The NAR report acknowledged, “With the constant changes in the legal status of both medical and recreational marijuana, there undoubtedly have been direct changes to real estate from these laws and related businesses.” 

To date, however, the actual impacts among Realtors® as reported in the NAR study were a little harder to find. Nearly equal numbers of residential Realtors® found property values either increased or decreased near marijuana dispensaries. Some found homeowners associations had added restrictions regulating growing or using marijuana in common areas, and some landlords added restrictions to their leases for rental properties. 

 Since marijuana is becoming a commercial venture, an observer might expect to see the largest impact on commercial real estate, and they would be right.  

Commercial Realtors® reported an increased demand most notably in sales for warehouses, storefront retail and land, especially since the onset of Covid 19. 

For commercial leases, the largest number of landlords expressed a concern about the smell and the perception of crime at the properties, and some attempted to address their concerns in the language of their leases. 

At the most, only 3% of Realtors® in states that had legalized marijuana indicated they were specializing in the sale or leasing of properties for that use. 

The NAR study suggests that it may simply be too soon to determine any impact from these new laws. In another 17 years when the insects return, Virginians may have developed more of an appetite for both cicadas and marijuana and might be seen harvesting both from their back yards.  

As troubadours Willie Nelson and Merle Haggard sang in 2015, “We’re all going to pot … whether we like it or not!” 

Frank Dillow is an instructor in NVAR’s Realtor® School and a senior commercial broker with Long & Foster.