Many places across the country are beginning a process Denver is very familiar with: legalizing recreational marijuana. The New York Times took a fresh look at how that impacts commercial real estate Saturday.
In the advanced market of Denver, here’s what they noted:
- More than a third of new industrial tenants in the city were marijuana business from 2009 to 2014, according to a report from CBRE Research.
- Three percent of Denver’s warehouse space is used for marijuana cultivation.
- Warehouse vacancies fell by 50 percent in the five years between 2010 and 2015.
- Landlords charge two to three times as much for marijuana businesses.
- The retail price of marijuana is falling as supply outstrips demand. Costly rent and utilities will make it hard for some in the market.
None of these ideas is likely revolutionary to you local Denverite readers. But I think it’s helpful to know the current measurements for just how much marijuana impacts commercial real estate.
If you’d like to ponder the future impact of marijuana on commercial real estate, give the whole thing a read. You’ll learn about national companies that are spending millions to build facilities across the country.