Canada’s pot industry will need 8M sf of industrial space by 2020

Cannabis companies in Portland pay a big premium for warehouses

TRD WEEKEND EDITION /
Feb.February 17, 2018 04:00 PM

You must be high, eh?

Canada’s pot industry will need more than 8 million square feet of industrial real estate by 2020, Bloomberg News reported. That would be about the size of Amazon’s Seattle headquarters, which houses about 40,000 workers across multiple buildings.

The 8 million-square-foot figure includes distribution and logistics centers, and would be more than five times the current level, according to JLL.

Canada is slated to make recreational marijuana legal in August or September.

The country’s $23 billion weed industry will put more pressure on the industrial real estate market, which had a vacancy rate of 3.9 percent at the end of 2017. That was the lowest figure since 2001.

Rents are up 15 percent in Vancouver and 7.3 percent in Toronto from 2016, according to Cushman & Wakefield.

“Industrial is as hot as anything you can imagine,” said Altus Group CEO Robert Courteau. Amazon and the pot industry, he said, are “another level of aggravation on unavailable assets.”

For a glimpse of how legalization impacts industrial real estate, Canadians can look south of the 49th parallel.

In Portland, O.R., cannabis companies paid a premium of $12 to $18 per square foot for industrial space in 2016 compared to market rates of roughly $5.

In New York, a lack of available real estate could be hampering the state’s marijuana industry[Bloomberg] – Rich Bockmann


Related Articles

arrow_forward_ios
Renderings of The William Vale and Denizen Bushwick with a Tel Aviv Stock Exchange ticker

All Year eyes sale of William Vale to pay off bonds

Breather CEO Bryan Murphy (Credit: LinkedIn and iStock)

Breather bloodbath: Flex-office startup fires 17% of staff

Stephen Levin, REBNY's Jim Whelan and Brad Lander (Credit: Getty Images)

The bill that won’t die: Will commercial rent control finally pass?

Softbank CEO Masayoshi Son (Credit: Getty Images)

SoftBank’s $3B payout to WeWork’s investors is delayed

John Legere (Credit: Getty Images)

WeWork reportedly in talks to hire T-Mobile exec as CEO

(Credit: iStock)

Small Talk: Every community meeting. About every development project. Ever.

An example of roll-off waste management (Credit: YouTube, iStock)

A win for big building owners in trash-collection fight

Duke Long and Poshtel International CEO Morten Lund

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

arrow_forward_ios