Although HH, the Colorado tax reduction initiative was ultimately defeated, there was one profound item…
Hope everyone is having a great fall. As the leaves start falling (and snow starts flying in the high country) change is definitely in the air. Along with the changes of the season, there have been a number of recent changes in the Marijuana industry. I wanted to highlight two articles that could radically change the real estate industry as a result.
Outdoor Grows: Colorado’s harvest is underway. USA today did an article on a 40 acre outdoor grow in Cotapaxi, CO (SW CO). Why grow in a warehouse in Denver and pay outrageous electric bills, high rent, etc…? USA today article
Colorado proposes ban on Marijuana infused products: Infused products (here is an ABC article on infused products) are the fastest growing (and most profitable) segment of the marijuana industry: Denver Post Article:
How will this alter the marijuana landscape and in turn the retail and industrial landscape both in Denver and throughout Colorado?
The industrial landscape in the front range is in for a wild ride as outdoor grows become more prevalent. I wrote an article for the Colorado Real Estate Journal: Is CO real estate high on marijuana? That talks about the recent run ups in industrial prices and why.
Currently grow operations are jumping into industrial space throughout the front range driving prices sky high. With outdoor grows coming online the huge demand will abate and prices will fall on many industrial properties. Along with outdoor grows, if infused products (ie: candies, brownies, etc…) become banned or severely restricted, there will be a further reduction in industrial demand. This drop in demand will dramatically alter the industrial gold rush in the front range.
Fairview continues to be the leader in hard money lending / non conventional lending throughout Colorado (including marijuana lending). We look forward to earning your business and closing your next non bank transaction.
written by: Glen Weinberg Partner/COO Fairview Commercial Lending