Meanwhile, dispensary locations are rolling out. Last month, Maryland regulators approved the first dispensary in Frederick County at 4606 Wedgewood Rd., a 6,315 square foot flex building.

However, zoning challenges and neighborhood opposition are high: JLL has tracked that only 39 out of the 92 pre-approved dispensary licenses have landed, “suggesting additional friction over the coming months as dispensaries identify and lease locations.”

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SUBURBAN MARYLAND–Since the Maryland Medical Cannabis Commission gave pre-approval last summer to 15 firms to grow medical marijuana, the industry has taken down nearly 1 million square feet of industrial space across the state, according JLL.

Excluding large-box leases, move-ins from medical marijuana users accounted for 16% of Baltimore and Suburban Maryland's net absorption over the past year, JLL said.

Growers have taken down a variety of industrial spaces, but the majority have gravitated toward Class B & C properties with ceiling heights under 20' and other building attributes that are dated for most warehouse users today, JLL says.

Holistic Industries in Prince George's County has been an exception with its 72,000 square foot Class A building that is delivering this summer. In December 2016, Atapco sold Holistic's land site at 9220 Alaking Ct. for $40 per square foot, setting a high watermark for Prince George's County industrial land sites.

Meanwhile, dispensary locations are rolling out. Last month, Maryland regulators approved the first dispensary in Frederick County at 4606 Wedgewood Rd., a 6,315 square foot flex building.

However, zoning challenges and neighborhood opposition are high: JLL has tracked that only 39 out of the 92 pre-approved dispensary licenses have landed, “suggesting additional friction over the coming months as dispensaries identify and lease locations.”

Save