When you’re living in a state that recently changed its laws, you may find that certain areas become popular for investment. In Colorado, that area is pot farms and commercial real estate, according to a May 5 report. One real estate broker has said that his commercial real estate has been flying off the shelves, so to speak.
According to his information, he was able to sell a 40,000-square-foot warehouse with a leaky roof in less than 24 hours because the client wants to make it into an indoor marijuana farm. The bonus for him was that the client paid in cash. Normally, he claims that industrial sites take months to sell, if not years. But now, he says he has sold five warehouses in all-cash deals to investors looking to rent space to growers.
Since the sale, possession and production of marijuana has been made legal in marijuana, commercial real estate has seen a rise in interest. According to the real estate agent, he has also leased around 15 buildings since October for marijuana-based uses. Those have been leased at nearly double the market rate, according to the report.
According to the news, if marijuana was legal around the United States, it would generate around $20 billion per year in revenue. Recreational and medical sales of marijuana in Colorado could reach as much as $1 billion for the fiscal year beginning in July, according to the governor’s budget. Those estimates may be high, since actual collections were lower than estimates, but the idea is still the same.
With the sales of marijuana, the economy, including the government, is seeing a boost. The sale of marijuana is expected to raise around $77 million in state and excise taxes, according to the researchers working with the Colorado General Assembly.
Source: Bloomberg, “Ganja Gets Warehouse Owners Buzzing as Pot Farms Thrive” Heather Perlberg, May. 05, 2014