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Legal marijuana causes warehouse rent to skyrocket in Sacramento – 4 or 5 times normal

Are you guys seeing increases in rents at your grow facilities?


I’m seeing the same thing here in SoCal. For example, in Adelanto industrial rents were around 50 cents / sqft modified gross before the city approved cultivation. Now, Im seeing NNN leases between $2 to $3 per sqft for those same warehouses.

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The people that are really going to win are those who can get their property rezoned for approved cannabis cultivation. See your real estate value increase that 4x to 5x in a short period of time (after dealing with you local municipality, of course…which can be…frustrating.)


I feel sorry for the other businesses who need warehouses in these spaces. :stuck_out_tongue:

It’s amazing watching the “ripple effects” of the industry. All that empty commercial space that has been vacant since 2008 is now starting to fill. I think that is great. There is always a cost for an new and evolving market and businesses will need to adapt.