Water bongs have caused a real estate boom in the Denver metro area.
According to the Denver Post, the marijuana industry now occupies 3.7 million square feet of industrial space in the Mile High City. That works out to one in every eleven industrial buildings and 35.8 percent of the city’s total industrial land.
The results are from a survey conducted by CBRE, a commercial real estate firm in Denver, which looked at “pot’s impact on the city’s commercial real estate market” between 2009 and 2014.
“It really kick-started the recovery of the industrial market in Denver,” said Jessica Ostermick of CBRE.
Average industrial lease rates in the third quarter were $7.05 per square foot across the metro area, according to CBRE, up 5 percent year over year and approaching record highs not seen since 2004. For lower-quality warehouse space, known in the trade as Class B and C, lease rates jumped 56 percent in the past five years to $6.34 per square foot in key cultivation areas. Marijuana tenants often pay a premium of two to three times the average.
Some experts predict that the demand for space, which has driven prices to levels not seen in over a decade, will only increase if the city lifts its moratorium on recreational marijuana licenses. Currently, only medical marijuana operators that existed before Oct. 1, 2013 are eligible to apply.
“If that moratorium goes away, there might be a lot of people trying to open up grow facilities in Denver who had otherwise been locked out,” Michael Elliott, executive director of the Marijuana Industry Group, told the Post.
(Source: The Denver Post)
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