Legalized Marijuana Shakes Up Denver’s Commercial Property Market

Apr 03, 2017

Legalized marijuana has created an extraordinary level of new activity in Denver’s commercial property market.

The New York Times, citing a CBRE Research report, has found that 36 percent of Denver’s new industrial tenants between 2009 and 2014 were marijuana businesses. In 2015, nearly four million square feet of industrial space, or three percent of the city’s warehouse space, was occupied by marijuana cultivation businesses, while the local warehouse vacancy rates fell from 7.5 percent in 2010 to 3.7 percent in 2015.

Retail properties have also benefited from legalized marijuana: there were approximately 200 marijuana stores in Denver as of 2015, located in such diverse locations as converted gas stations and high-end storefronts. However, this market shift has seen some problems: landlords have been known to demand two to three times higher rent for marijuana businesses, and the retail price of Denver-area marijuana has been falling as supply outpaces demand.

About the author

Phil Hall

Link copied

Published

Apr 03, 2017

Analysis and Data

Homeowners Insurance A Growing Concern in Florida and California

Majority of Fla. and Calif. survey respondents have been affected by insurance woes or live in an area that has, Redfin says

Insurance is at the top of mind for homebuyers and homeowners in Florida and California, which have become epicenters of the nationwide housing insurance crisis. Rising homeowners insurance premiums and changes in coverage are so commonplace now that nearly three-quarter...

Analysis and Data

California Home Sales Decline In March, Despite Increased Listings

The California Association of Realtors reports that the median home price rose 7.7% year-over-year.

After just last month announcing the resiliency of California home sales in February despite rising interest rates, figures released today by the California Association of Realtors (CAR) show sales volume in the state slipped in March as median home prices hit a seven-month ...