The Real Estate Bloggers

Commercial Real Estate Boom in Bolder With New Medical Marijuana Leases

Posted: 06 Dec 2010 05:00 AM PST

Medical-Marijuana The retail commercial real estate market has been overbuilt the past few years as we all know. But a new law in Colorado, the allowing of medical marijuana dispensaries, has created a boomlet in their commercial real estate market.

112 new medical marijuana dispensaries applied for business licenses in the city. The leases have absorbed over 200,000 square feet of space that was idle and has been a boon to the economy. The additional provision that the dispensers grow 70 percent of their products has also helped the warehouse landlords as year round grow operations need to indoors in the Rocky Mountain city.

I do wonder how landlords are dealing with the ethical dilemma of renting to marijuana dispensaries. I for one would have no problem but I would guess there are many landlords that would disapprove. All I know is that a rising tide lifts all boats. You know, higher…

Another boost came from the state’s new law, which took effect on Sept. 1, that required all medical marijuana businesses to grow 70 percent of their product. That sent dispensary owners scrambling for warehouse space. And since Boulder is one of the few places where landlords and local zoning are amenable to growing medical marijuana, the city saw activity not just from local businesses, but regional ones as well.

“When all this started, there were quite a few landlords who would not play ball,” Ferrick said. “Then, they saw all the leases being done at above-market rates, without much tenant-improvement costs. The other landlords quickly caught on.” via the Daily Camera.

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Commercial Real Estate Boom in Bolder With New Medical Marijuana Leases