Since Maine voters legalized marijuana, real estate brokers in the state are seeing an increased demand for industrial space, according to a Jan. 16, 2017, article in the Portland Press Herald.
Maine’s industrial real estate market had been improving in recent years, and the need for marijuana business space has given the sector a new boost and brought vacancy rates to their lowest point in years.
“For the last six to eight months, we’ve seen quite a bit of additional interest in anticipation of recreational passing,” broker Justin Lamontagne of NAI The Dunham Group said.
That recent interest has continued a trend of increasing demand. In 2011, Maine’s industrial properties had a 7.86 percent vacancy rate, but that had dropped to 3.38 percent by 2015.
Lower vacancy rates mean higher prices. The price per square foot for industrial space was at $5.47 in 2011, and then it dipped to $5.22 in 2012. But in 2015, it had risen to $5.62.
“The economic opportunities for landlords are significant,” Ted Kelleher, an attorney with Drummond Woodsum, said. “Even though the process for the state granting licenses is a year away, people are already trying to secure properties.”