Colorado legalized marijuana on January 1, 2014. During the first week of legalization, the state served thousands of customers, pulling in over $5 million in taxed and regulated sales. These booming sales have left marijuana salesmen scrambling to find ample warehouse space for growing their product. Not all Colorado municipalities allow marijuana farming. It means that areas where it is allowed are tight on suitable space, particularly Denver.
As of March 2014, marijuana cultivation and manufacturing facilities in Denver take up 4.5 million square feet, which is just under the size of 80 football fields. While the growth has been explosive, it seems as though it will be sustainable for the foreseeable future. The demand is through the roof, and growers and manufacturers are struggling to keep up with it.
Nearly every recreational store and dispensary in the state of Colorado is searching for more growing space. Pot salesmen are fighting for the few available spaces, which mean that landlords can charge a premium for their spaces. An average industrial space in Denver has a lease rate of $4.74 per square foot. In comparison, many marijuana merchants are willing to pay $17 per square foot or more.
As larger warehouses are worth millions of dollars, it is not hard to understand why merchants are weary about discussing size of their operations. However, it’s clear that there are quite a few of these sizable facilities throughout the state.
The bottom line is that even the most abundant, successful farmers are not able to grow sufficient quantities of marijuana to meet the demand. State budget officials are anticipating $613 million in sales between March 2014 and March 2015 on top of an estimated $345 million in medical dispensary sales.
Ray Boroumand is the Office Manager of 4th Street Medical, a leader in providing evaluations for medical marijuana in Santa Ana. An advocate for medical marijuana, Ray believes in making the process as simple and easy for patients as possible through quick and convenient verification. At 4th Street Medical, he stresses convenience, affordability and transparency 100% of the time.