Going, Going, Gone.
Time Magazine published an article today about the soaring costs of warehouse space in Colorado. The medical and the recreational marijuana businesses that have taken hold in this state have created a huge surge in demand for space to grow, extract, and store marijuana.
You can read the story here.
At The Rodman Law Group we have made a point to counsel clients to invest in warehouse real estate, especially I-B zoned space in Denver. I-B is the only zoning in Denver, as of the date of this post (8/26/2015), that permits marijuana extraction for Marijuana Infused Products (MIPS) operations that have an extraction process larger than 3,000 gross square feet. I-A zoned space is slightly less in demand as businesses looking to secure space for an extraction process that is smaller than 3,000 gross square feet can set up shop in I-A zones. Businesses can also potentially extract in I-MX zones, although I-MX applications require approval on a case by case basis (which adds additional layers of complexity and uncertainty to the process).
Recommending the purchase of warehouse space is something RLG strongly urges clients who want exposure to the investment opportunities of the Green Industry but do not fulfill the statutory two year Colorado residency requirement for having an ownership interest in ANY type of marijuana business. The Green Industry is one of the fastest growing industries in America, and people are scrambling to cash in on its success. When investment opportunities are restricted by regulations such as those enacted by the Colorado Marijuana Enforcement Department, pathways to the Green Play are not always obvious. Right now, real estate in the greater Denver area is a relatively easy way to enter the Green Space. The return on investment for leased properties is truly staggering, and tenants are happily signing triple-net leases every day.
For counsel on getting involved in the Green Industry, whether as an equity owner of a marijuana concern or through alternative routes like real estate, contact the Rodman Law Group and schedule a consultation.