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Marijuana Real Estate Prices In Denver, Colorado Are Rising Fast


denver colorado marijuana real estateWhen people ask me what is a good investment in the cannabis industry, I always tell them that real estate is in high demand. Real estate is a great investment anyways, but in the cannabis industry, it’s even better. One of the most common questions I get asked is if I know of anywhere that will rent to an industrial cannabis garden or dispensary or some other type of cannabis business. In Denver, the demand is so high, and supply so low, that it’s resulting in prices for cannabis business real estate growing exponentially. Per Lady Bud:

 How much have prices inflated from when you started Avalon Realty Advisors since its inception?

Since January 2014, industrial real estate pricing for sale and lease have increased two to three fold or more. These properties were generally constructed from the 1940s to 1970s and typically lease for around $5.00 per square foot, triple-net and sell for $40.00 to $55.00 per square foot to mainstream companies. Due to the incredible demand and a lack of appropriately located properties, those same properties are now leasing for $12.00 to $14.00 per square foot, triple-net and are selling in the $80.00 per square foot range.

Buying real estate is not cheap, but if you can afford it, it’s a solid way to invest in the cannabis industry. The amount of places to rent/lease versus how many people want to get into a commercial real estate spot is completely in favor of the real estate owner. And that balance is shifting more and more into the favor of the owner everyday. Not just in Denver, but in any area where cannabis businesses are allowed to operate.

Source: International Cannabis Business Conference

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  1. Good article! In Colorado the home prices rose faster in February than in any other state. A report from REcolorado shows that the median price of the home sold in the metro denver metro crossed $300,000 in March for the first time. It raised up from $292,000 in February which was only $265,000 a year earlier. As you said, in Denver the demand is too high where as supply is less which made the prices go up so fast.

  2. Really good article. I mean, it seems like for folks going into the legal weed growing business there definitely is a good ROI to be had if you go in with your eyes open.
    But with the federal government so illogical/unpredictable I don’t know if it’s the business I’d choose right now. All about personal risk/reward. I want to be able to get excited about my business growing and expanding. Where as right now, as a grower, the bigger you get it seems like the more risk of federal intervention there becomes.

    Regardless of growers I’m really glad that it’s becoming harder for landlords to shut down medicinal users. Landlords are hard pressed to have a zero tolerance policy in legal states now even if they want to unless they want to be in violation of fair housing.

    I wanted to learn more about this issue and make it easier for renters so I decided to make
    an infographic. Check it out here if you’re so inclined:



  3. Legalize Nature on

    I was referring to the climate in which we cannabis growers operate, Please read the post again. Yes on a climate
    change it has been hotter and very dry.

  4. Humboldt County is a lovely place. So your climate is getting warmer too? This year was the second hottest summer on the books in Western Washington. The hottest summer was last year, 2013. The combined 2014 July-August temperatures were in fact the highest temps ever recorded up here for those consecutive months. Climate change deniers, who live primarily in the Southern US will be the end of us all I’m afraid.

  5. Legalize Nature on

    Wow your cocky, making assumptions about me, for your information I am also a grower in Humboldt up in the mountains. I live off grid and do light dep and full season. In the fall through winter I grow indoors. The climate here is much more dangerous these days and I bet you could not thrive here as I have, with all the people from all over the world trying to get a grow started, gangs from as far away as russia are trying. I have friends where you are doing it. Their lease varies, bottom line people are trying to really cash in there in CO. I only grow for people that are really sick, how about you?$

  6. That is because people will not agree to laws that restrict individual income in a meaningful way (like income caps, super high progressive income tax rates, and labels requiring costs of production with profit margins). If you don’t like it, you have to get out there and do it for less your self (I bet you wouldn’t even if you could).

    As a grower, I’ve got to be pretty disingenuous about my possible revenue. Do you think I will pay the same rent as other growers if the land lord knows I have a minimum of double the average harvest with a maximum of quintuple the average harvest? I got lucky with my first actual rental shop- less than $1/sqft, no questions about my “revenue,” all the landlord wanted was legal compliance (which is preordained in my book). There was even a 10″ vent hole pre-installed and drains (which is a nice perk for me).


  7. Legalize Nature on

    People motivated by greed is what is wrong with this country. This kind of price gouging is passed along to the cannabis consumer. This kind of greed is one reason projected tax revenues are off in CO. This will ensure the black market continues to thrive

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