Since legalization was enacted in 2014, it has become normal for those residents who pass through an industrial district in Denver to become enveloped in the smell of fresh marijuana harvests. This is likely due to the fact that one out of 11 industrial buildings in the Centennial State’s capital city is filled with growing cannabis, being cultivated to perfection for retail sale.
Colorado’s marijuana industry occupies nearly 3.7 million square feet of commercial space in Denver and in recent years, was accountable for nearly 36 percent of all industrial space in the Mile High City.
“It really kick-started the recovery of the industrial market in Denver,”
said Jessica Ostermick, director of research and analysis for CBRE, a real estate firm in Denver.
With increasing market needs and plenty of available space, the legal marijuana industry has brought the real state economy back to life, productively filling spaces that would otherwise remain empty. However, many in the cannabis industry are finding it difficult to purchase building space at low rates. Instead, it is reported that cultivation tenants often pay a leasing premium of two to three times the average renter. Some property owners refuse to lease to cannabis cultivators due to loan constraints and overall federal law conflict.
Through the city’s regulated processes of obtaining and remaining in lease, growers are flourishing in Denver, and the real estate market is thankful.