California’s Canna-Hub Business Park Communities offer real estate solutions to cannabis companies eager to join California’s ‘Green Rush’
Cannabis operators and investors in Colorado, Washington, and Oregon are turning their attention to California’s new legal cannabis market.
In Oregon and Washington, lawmakers are considering decreasing available licenses for cultivators in order to address concerns about overproduction. In Colorado, the cannabis market is expected to plateau as other states legalize. Meanwhile in California, the cannabis market is expected to reach $6.5 billion by 2020, according to ArcView Market Research.
Before a business can secure a state license to operate in California, a local permit is required. Pre-approved cannabis business communities give cannabis operators the option to get started in a space with low local permitting fees, through California real estate company Canna-Hub.
Canna-Hub, the property management company for the cannabis industry, recently began accepting lease commitments at a new 16-acre business community in Mendota, California.
Canna-Hub was formed in 2017 for the purpose of identifying, acquiring, and developing lower-cost properties without cannabis zoning, while working closely with city government officials to effect zoning changes on the identified property.
“It was evident after meeting with the Canna-Hub team that this is the type of forward-looking development we want here in the City of Mendota,” said Vince DiMaggio, Mendota City Manager, in a statement. “We welcome the opportunity to create jobs and look forward to the positive impact this new business park will have on Mendota for years to come.”
Mendota’s Canna-Hub Business Community, or “cannabis hub,” will be able to accommodate numerous license types with the ability for operators to secure as little as 5,000 square feet in multi-tenant buildings. The Mendota cannabis hub has received local city zoning and authorization for indoor cultivation, greenhouses, nurseries, volatile and non-volatile manufacturing, tissue culture labs, third-party testing labs, distribution and transport.
Canna-Hub is also accepting lease commitments for a cannabis business community in Williams, California.
“We worked closely with city officials and local stakeholders in both communities to approve the lowest local permitting fees in California,” said Tim McGraw, Canna-Hub Founder and CEO, in a statement.
In Oregon, the cannabis market is under attack with accusations of overproduction, according to Portland Business Journal.
Cultivators in Washington face similar concerns from lawmakers, who argue that overproduction leads to growth in the black market, MJ Biz Daily reported. Proposed changes include “reducing the amount of square footage growers are allowed, ending license transfers, and putting a moratorium on the approval of new licenses.”
The Colorado cannabis market may plateau as other states legalize cannabis “and market pressures exert a downward force on the wholesale price of cannabis,” according to Huffington Post.
These challenges encourage cultivators to do business in California, where cannabis sales are projected to hit $5 billion in 2018, according to a California-sponsored economic study
McGraw said he supports operators on the forefront of the multi-billion dollar cannabis industry. “The local benefits with regards to jobs, improved infrastructure, and overall economic stimulus that accompany our developments are also game-changing for local residents. We strive to be good neighbors in the communities in which we operate,” McGraw said in a statement.
McGraw is a commercial real estate developer who has also designed or built cannabis-specific facilities in several states and abroad, and has overseen cultivation, manufacturing, distribution and security of the largest cannabis operation in Illinois.
“Canna-Hub operators in both Williams and Mendota will pay a low per square foot permit fee with no revenue tax,” McGraw said. “We negotiate favorable terms for our operators to ensure their long-term success, and are committed to being an asset to our partner cities by spurring economic activity that will create jobs and contribute to the local tax base.”
Canna-Hub will provide operators proof of zoning approval for submission with their state license applications immediately upon the execution of a lease agreement at its Mendota site.