As medicinal and recreational cannabis expand in Colorado, so will the industry's need for growing and distribution space. Will it find the space it needs? Hear more about it at our Denver Industrial Investment & Development Conference on Tuesday at the Ritz-Carlton Denver.
General Cannabis Corp CEO Robert Frichtel, who will be a speaker, tells us currently there aren’t many issues in finding suitable space for cannabis cultivation in Colorado. "The industry has, over the last year or so, expanded cultivation operations—in a large way—into the southern parts of Colorado," he says.
"There's been expansion in counties with lots of raw land and environmental conditions suitable for greenhouse cultivation or simply growing a single crop per year outdoors." These industrial buildings have a much lower cost basis than the Denver metro area.
However, Robert adds, with an initiative on Pueblo County’s ballot in November, the landscape might change once again and create a shortage of suitable cultivation sites. Should the initiative pass, all retail (adult use) establishments (storefronts, processing locations and cultivation sites) would be closed in Pueblo County by Oct. 31, 2017.
"This would likely put pressure back on the market for industrial properties in jurisdictions that would continue to allow cannabis cultivation and distribution," he says. "As with many things in the cannabis industry, nothing remains constant for very long."
"The biggest challenges we face are all anchored by the same issue: uncertainty," says Dixie Brands CMO Joe Hodas, who will also be a speaker. "We all believe strongly that the industry in some shape or form is here to stay. Neither federal nor state government are likely to reverse the positive progress we've all made. However, with the rules/regulations still constantly in flux, major issues such as 280E and banking are still haunting us and preventing smart growth."
Predicting the growth trajectory of the industry is also problematic, Joe says. "We're still in a bubble, so it's very hard to assess needs as it relates to space and expansion. When we're ready for the expansion, the space may not be available or if it is, we may well have been priced out since we have little to no access to banking. That's ironic, given that we're partly responsible for the boom."
Join our experts at the Denver Industrial Investment & Development Conference beginning at 7:30am Tuesday at the Ritz-Carlton Denver.
