Paul Britvar Paul Britvar

Cannabis real estate is generating premium rents for industrial facilities in San Diego. According to research from Newmark Knight Frank, cannabis-zoned industrial product is capturing rents $1 or more per square foot than similar quality product not zoned for cannabis usage. The cannabis market in San Diego is still new, but the leasing activity is already exposing the substantial impact the industry will have in San Diego.

"The primary impacts have been to lease rates and availability," Paul Britvar, a director at NKF, tells GlobeSt.com. "Many cannabis uses require buildings with substantial power and cannabis operators are able to pay a premium for the space because of the high profit margin their business creates therefore not only are rental rates higher than average in buildings where cannabis operators lease, but the cannabis uses often seek buildings with exceptional power which removes these buildings from the market for industrial uses."

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.