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.
It's a double-edged sword for the weed-friendly city, reports New Republic, as the city plans to use most of its tax revenue from marijuana on enforcement and drug education. On the other hand, the rent is getting higher and nobody likes that.