Commercial Real Estate Levered To Cannabis Is Positioned To Bloom
Since January 2014, industrial real estate pricing has begun to soar for sale and lease have increased two to three fold or more. These properties were generally constructed from the 1940s to 1980s and typically lease for around $5.00 per square foot, triple-net and sell for $40.00 to $55.00 per square foot to mainstream companies. Due to the incredible demand and a lack of appropriately located properties, those same properties are now leasing for $15.00 to $18.00 per square foot, triple-net and are selling in the $85.00 per square foot range.
According to the International Cannabis Business, the amount of places to rent/lease versus how many people want to find a commercial real estate spot is completely in favor of the real estate owners and companies that operate in the space. That balance is shifting more and more into the favor of the owner everyday. Not just in Colorado, but in any area where cannabis businesses are allowed to operate.