Marijuana related real estate conversations
For those that know me, it probably comes as a surprise to see a second blog post on this topic. Marijuana related real estate discussions are a hot topic… That’s why I’m involved and that’s why I’ve sought out the education.
In the last couple of months I have received a number of calls from owners of growing operations. The Boulder-Denver area is an accepting place to scale up your business or find a more permanent home for it. Specifically, owners are looking to buy warehouse space. They are well qualified buyers, often with a lot of cash for the purchase.
I myself, am not a commercial broker. I receive calls because apparently if you Google “marijuana + real estate + Boulder” you get me, pretty quickly! I have found it both interesting and informative to speak with these real estate buyers and in the beginning, I directed them to one of my commercial real estate partners. As time has marched on this year, feedback from my partner has boiled down to this: There is little to no commercial warehouse space fit for a growing operation, available between Boulder and Denver.
When the law first changed, commercial brokers did a booming business taking care of marijuana related real estate buyers, but these days, it’s no longer a walk in the park.
This week I stumbled upon yet another article which confirms the information I had been receiving. (Yes, I’m a fan of Tenant Wisdom, LLC)
- Warehouse space in the size of 1,200 – 3,000 square feet, with a small office and a garage door… Hard to find!
- While there is a construction boom happening, it is mainly catering to the multi-family, office and/or hotel crowd.
- A seller is very happy right now… A buyer, not so much.
- Buyers will want to anticipate their needs 12-18 months in advance in order to try and meet them. (Don’t leave it to the last minute!)
- Buyers are advised to use a professional in the search and procurement of commercial space. Especially if the business is marijuana related, since this remains a complex niche of real estate.