Maryland MMJ Industry Fires Up Real Estate Market

Marijuana entrepreneurs seeking cultivation licenses in Maryland have given the state’s industrial real estate market a lift over the past year.

Many applicants have already secured warehouses for grow sites and others are flooding real estate agents with calls about sites, according to the Baltimore Sun.

Of the roughly 1,080 license applications received by the Maryland Medical Cannabis Commission, nearly 150 are for cultivation permits, although some companies submitted more than one. According to the Sun, many companies already rent space or have secured sites with options payments or other arrangements.

In the end, however, the state will issue 15 cultivation licenses, meaning that many cultivation companies that did not win a license will likely be left with property they cannot use.

A recent market report by JLL, a Chicago-based national commercial real estate firm, said that in 2015, the Baltimore region could surpass historic occupancy rates for industrial properties.

Marijuana companies will likely account for a small amount of the state’s industrial tenants, but their role is important because such businesses tend to opt for older industrial areas, a national real estate expert told the Sun.

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2 comments on “Maryland MMJ Industry Fires Up Real Estate Market
  1. Brett Roper on

    This type of response in the RE marketplace is to be expected in any state throwing its hat into the Cannabis ring. In Illinois we saw several property owners take back-up lease and or sale commitments because they knew only one winner per State Police District would be awarded. At the end of the day in Maryland releasing 15 winners on the industrial marketplace will likely not have a significant mid-long term impact pm the state wide but rather, hold on if the State decides to expand licensing in the future (similar to Colorado and or Washington). I would also expect that several of the Maryland winners will be ‘greenfield’ starts which would not impact the existing industrial space marketplace. I expect to see this same flurry in Hawaii as well noting those holding property on the islands interested in this space would be wise to take back up contracts or lease commitments due to only 8 total licenses being awarded on four islands. Good fortune to all in the Cannabis related RE rush as I know of several speculators in the market today in some of these states still holding empty buildings.

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