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Colorado's New and Untapped Income Stream

DENVER—One panelist at the upcoming RealShare Denver conference says that underutilized class B and C industrial product is experiencing unprecedented absorption thanks to the marijuana industry.

By Natalie Dolce | Updated on July 31, 2015

DENVER—Commercial real estate leadership from throughout the Front Range will gather on August 11 to discuss the latest trends and hottest submarkets in the Greater Denver region. With significant exposure to the technology and energy industries, investors have maintained continual interest in Denver’s real estate. Industrial panelist Jason Thomas, principal and founder of Avalon Realty Advisors says that underutilized class B and C product is experiencing unprecedented absorption thanks to the marijuana industry, where users pay significantly above-market prices to lease or own space.

“In 3Q 2013 as businesses prepared for expansion and new market entrants began the acceleration of industrial leasing and sale activity to unprecedented levels. At the time, there was an estimated 3 million square feet of industrial space occupied by cultivators (primarily in Denver County), with another 800,000 square feet of greenhouse developments either under construction or already delivered,” he says. “Since the explosion of demand for cultivation space that began in late 3Q 2013, the industry has absorbed an additional 2.5 million to 3 million square feet of traditional warehouses in the Denver Metro, with another 2 million square feet of greenhouse facilities delivered to the market and another 1.5 million square feet under development or in the late stages of planning.”

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