Is Colorado getting “high” (er) on marijuana?
I published an article in the Colorado Real estate Journal (11/6/13) with the title: “Is Colorado High on Marijuana?” Since then, there has been quite a bit of smoking (or eating) that is continuing to drive the market. So how has this impacted real estate in the last year?
As a Colorado hard money lender myself (traditional banks are still not engaging in this market), I have witnessed first-hand the impacts of the marijuana industry on commercial real estate. As Alan Greenspan coined the phrase to describe the coming dot com bust, “irrational exuberance “ best describes the current impact marijuana has had on industrial real estate. This irrational exuberance is being seen both in lease rates and recent sales.
As most know, Marijuana production (both medical and recreational) has been relegated to industrial areas. Industrial properties are ideal since many have heavy power, open spaces, and typically fit the zoning requirements (setback from schools, rehab centers, etc…).
With the new Marijuana gold rush in Colorado, how is this impacting both supply and demand of industrial properties?
See PDF of Article from the Colorado Real Estate Journal: Colorado Real Estate Journal Industrial Update
Link to full e-magazine of the Colorado Real Estate Journal: Is Colorado getting higher on marijuana?