With the passage of legalized cannabis in Colorado, Denver property values have soared. Investors in real estate and homeowners are enjoying a sellers market, but what does it mean for the state as a whole?
For commercial real estate, it boils down to what the incoming businesses are willing to spend to get that perfect location. Or in some cases, how much property owners can squeeze out of them before they would rather relocate.
For many canna-businesses leasing space in Colorado, they are paying far more than their neighbors for a comparable real estate, simply because property owners know they can afford it. Warehouse spaces once thought of as a bad investment in a down economy are suddenly being snapped up by wealthy investors and hedge funds, looking to make a mint.
“There has been a huge bump in real estate prices due to the legalization of marijuana. It’s massively pushed up raw land and industry prices.” – James Paine, managing partner at West Realty Advisors