The weed is flowing like wine in Denver. Or something like that. According to a recent post in the, um, Denver Post "One in 11 industrial buildings in central Denver now houses marijuana cultivation." For those not up-to-snuff on how Denver's industrial space looks, that's 3.7 million sqft devoted solely to the marijuana cultivation, or 2.6% of the city’s total industrial space. DENVER IS BOOMING!
“It really kick-started the recovery of the industrial market in Denver,” says Jessica Ostermick of CBRE, a commercial real estate firm in Denver. The average industrial lease has jumped up 5% and is approaching record highs because "marijuana tenants often pay a premium of two to three times the average."
This recent expansion has dramatically affected the housing markets, raising rents sky-high and lowering vacancy rates. “I do believe that there has been a huge amount of individuals who have moved out here specifically for the marijuana industry, and it has affected the housing market,” says J.P. Speers, a real estate broker at Berkshire Hathaway Home Services.