Hartford Business Journal

www.HartfordBusiness.com • January 21, 2019 • Hartford Business Journal 21 OTHER VOICES Recreational pot would be a boon to CT economy, real estate By Luke Massirio and Daniel Glissman C onnecticut is uniquely positioned to implement an adult recreational cannabis program quickly and efficiently. Connecticut can develop thought- ful, straightfor- ward, business- friendly legislation for this industry by building on its medical program and looking to Massachusetts, which has pio- neered the way for this industry on the East Coast. After similarly building on its medi- cal marijuana program, Massachusetts opened the first recreational cannabis establishments east of the Mississippi River on Nov. 20. Since its first day of sales through Dec. 30, the cannabis industry in the Bay State grossed almost $15 million, and Massachu- setts has projected that the state's revenue will increase by about $215 million in the first two years of retail sales. Even though Connecticut has yet to legalize recreational cannabis use, it's important for cities and towns to begin planning for this industry right away. However, many Connecticut munici- palities won't do so until the state gives a clear indication that legalization is imminent. Through a transparent and deliberate legislative process, Connect- icut could seize on this opportunity and clearly identify when an adult-use pro- gram would begin, giving municipali- ties, businesses and residents time to plan how and where they want canna- bis establishments in their community. It's no secret that growth has been a major issue for Connecticut's economy. In comparison to other parts of the country, Connecticut still has higher vacancy rates among various types of commercial real estate. Raising revenue is a major problem in Connecticut. It was a major talking point for both political candidates dur- ing the gubernatorial race. Connecticut now has a golden opportunity to capi- talize on the ever-expanding cannabis market, particularly when it comes to filling vacant commercial real estate. During a recent interview on WFSB's "Face the State," Gov. Ned Lamont in- dicated he would like to see a push for legalized recreational marijuana this year. This is great news for an economy that desperately needs growth. Fo- cusing in on real estate in particular, legalization would assist in filling many vacancies among various types of prop- erties throughout the state. The industrial/flex market alone, with much of the state's inventory be- ing outdated, underbuilt and under- utilized, could see a large increase in sales and leasing activity from canna- bis legalization. Growing, warehousing and distribu- tion facilities along with research and development labs are just a few exam- ples of the micro-cannabis economies that will improve the industrial real estate market in Connecticut. Other states, such as Colorado, have seen industrial vacancy rates plummet due to the advent and growth of the cannabis industry, effectively rais- ing rents for landlords and, of course, increasing revenues for governments. Keep in mind, job creation and the housing/residential benefits as well, which is an entirely different topic. Another asset class that stands to greatly benefit is retail. Obviously, like beer and spirits in package stores, can- nabis products must be sold somewhere. The disruption e-commerce has caused in brick-and-mortar retail has left many storefronts vacant. Many strip centers have high vacancies with rock-bottom lease rates due to laws of supply and demand. Cannabis can increase the de- mand for retail space, effectively increas- ing rents while providing better returns for landlords and investors. Luke Massirio is a commercial real estate broker with O,R&L Commercial. Daniel Glissman is chair of the cannabis practice group at Hartford law firm MacDermid Reynolds & Glissman P.C. HARTFORDBUSINESS.COM POLL LAST WEEK'S POLL RESULT: Should Connecticut legalize the recreational use of marijuana? NEXT WEEK'S POLL: Can CT be a leader in adopting 5G mobile network technology? To vote, go online to hartfordbusiness.com BIZ BOOKS How to connect with people in a virtual world By Jim Pawlak "Can You Hear Me? How to Connect with People in a Virtual World" by Nick Morgan. Today's faceless technology (i.e. email, texting, so- cial media, voice- mail, conference calls), while making communication easier, isn't necessarily making it more effective. By replacing face-to-face, the emotional connec- tion of voice, tone, gestures and body language are lost. These face-to-face elements deepen conversations quickly and help avoid miscommunication because both parties can ask questions and receive instantaneous feedback. There's another consequence of virtual communication: We're bom- barded with so much from so many sources that it's often difficult to determine what's important and re- spond thoughtfully and timely. When we do respond, it's often "snippet" feedback, which makes it difficult for the recipient to decipher meaning. Morgan offers this advice for making virtual communication "less faceless": To the extent possible, establish impor- tant relationships in person. Creating "I know you and you know me" trust makes ensuing virtual communication more personal. So does writing conver- sationally rather than in biz speak. As you sort through things requir- ing a response, decide what's a priority. When responding, think about the point of the commu- nication and what the other(s) need from the exchange. Sum- marize your understanding of the sender's request at the begin- ning of your response. After the "As I understand it" intro, ensure you're clear about what you can do and when you can do it. Include "what's next" questions. Avoid expressing negatives; these should be discussed face-to-face. When introducing a new idea virtually, start with a story about why something must be done. Explain how those involved can make it happen. Close with a proposed next step and ask for feedback. 18% No 82% Yes Luke Massirio Daniel Glissman Jim Pawlak Book Review

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