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Business is good for businesses in Denver, and not just for marijuana companies. The real estate sector is feeling a crunch of new buyers, sparking a surge in lease rates.
This is great news for real estate companies of course, but bad news for those who growing alongside the pot-growing industry. Rental rates are skyrocketing, shooting past ten percent from last year’s records in Denver, Colorado.
What is all this commercial real estate being used for? Well, mainly production and storage space for manufacturers of marijuana products. Much of the equipment and packaging needs to be manufactured locally, too. That’s obviously great for the economy, but it’s just taking the commercial real estate demand to a new level.
Denver Real Estate Just Got Real
It has been estimated that the production and storage of marijuana products in Denver account for about 4.5 million square feet alone in Denver. We’re not just talking about big empty warehouses, either, marijuana companies have moved onto hybrid buildings that house office spaces, plant spaces, and distribution.
Large empty buildings are being snatched up and vacant lots are being built as fast as they can, as Denver witnesses the biggest boom in economic, population, and manufacturing growth since the tech industry, and even the automotive industry boom.
In many cases, real estate agents are having to tell their clients that they need to wait until more space is available, not because they are limited to a certain budget, but because there is simply not enough available right now. In fact, real estate is so scarce that major industrial entities are filling new commercial real estate applicants into buildings that haven’t even been constructed yet.
Will The Housing Market Crash?
This market is going to resemble a bubble in a few more years, as wild investors will speculate on real estate that doesn’t exist, on start-ups who don’t have a physical presence, and on the cost of everything that directly or indirectly benefits from this lucrative space in Denver, Colorado.
Until there is a very real chance of marijuana becoming legalized federally, I don’t think investors or real estate companies have much to worry about, for now. It is quite insane to see the amount of resources being proposed for further expansion at this point in time.
Millions of square feet of commercial and industrial real estate planned, mortgages on property, which hasn’t been built yet, being signed. Yes, the sound of cash registers and signed checks is music to our nation’s ears.
If only those who hold antiquated prejudices against this medicinal miracle could go out and purchase some ear wax cleaners, or perhaps experience a little contact high to change their minds about things.
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