Marijuana Real Estate Prices In Denver, Colorado Are Rising Fast
When people ask me what is a good investment in the cannabis industry, I always tell them that real estate is in high demand. Real estate is a great investment anyways, but in the cannabis industry, it’s even better. One of the most common questions I get asked is if I know of anywhere that will rent to an industrial cannabis garden or dispensary or some other type of cannabis business. In Denver, the demand is so high, and supply so low, that it’s resulting in prices for cannabis business real estate growing exponentially. Per Lady Bud:
How much have prices inflated from when you started Avalon Realty Advisors since its inception?
Since January 2014, industrial real estate pricing for sale and lease have increased two to three fold or more. These properties were generally constructed from the 1940s to 1970s and typically lease for around $5.00 per square foot, triple-net and sell for $40.00 to $55.00 per square foot to mainstream companies. Due to the incredible demand and a lack of appropriately located properties, those same properties are now leasing for $12.00 to $14.00 per square foot, triple-net and are selling in the $80.00 per square foot range.
Buying real estate is not cheap, but if you can afford it, it’s a solid way to invest in the cannabis industry. The amount of places to rent/lease versus how many people want to get into a commercial real estate spot is completely in favor of the real estate owner. And that balance is shifting more and more into the favor of the owner everyday. Not just in Denver, but in any area where cannabis businesses are allowed to operate.