Viewpoint

Colorado ViewPoint - Marijuana real estate in Denver: the early years September 2015

September 22, 2015

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  • The marijuana industry was a key factor in the industrial sector’s recovery during the current business cycle, accounting for 35.8% of Denver’s total net absorption in industrial space between 2009 and 2014. Based on our records, the majority of industrial marijuana leasing activity took place from 2009 to 2011, with more moderate levels of activity occurring in the last 12-18 months.
  • Marijuana cultivation accounts for at least 3.7 million sq. ft. of occupied industrial space in Denver, or approximately 2.6% of the existing warehouse footprint. The top Denver submarkets for marijuana cultivation are Airport/ Montbello, Central, North Central and Southwest, where the marijuana footprint is 4.9% of the total warehouse square footage on average.
  • At least 214 unique marijuana retail addresses exist in Denver alone, many of which were established when the retail sector was soft following the recession.
  • The young industry faces unique challenges pertinent to commercial real estate stakeholders dealing in the cannabis space.