Bank buildings are becoming attractive locations for cannabis dispensaries, but fortified vaults aren’t the reason. The banking industry has been closing bank branches by the thousands. According to the National Community Reinvestment Coalition, 9% of all branch locations in the U.S. closed between 2017 and 2021 or roughly 7,500 brick and mortar locations. This move really picked up steam during the pandemic when most people migrated to online banking. Bank consolidation and improvements in mobile banking have also contributed to the banks giving up their locations.
The number of bank locations peaked in 2009 at 92,394 individual physical branches, but then the financial crisis of 2007 set off a spiral of bank failures and consolidation. Banks have closed more than 13,089 branches since 2009. That means a lot of real estate has opened up for new renters.
Travis Goad, Managing Partner of Pelorus Equity Group said, “While this isn’t a widespread trend that we are seeing emerge across the country just yet, we see how a bank’s attributes would be appealing to cannabis retailers. Brick-and-mortar banks tend to have built-in features that could benefit a cannabis retailer. In addition to security features, banks are typically located in high-traffic locations with an interior