Comstock's magazine 0818 - August 2018 - Page 54

n CANNABIS W hen the City of Sacramento first approved com- mercial cannabis activities — beginning with recreational cultivation ordinances in November 2016 — the municipality was attempting to get ahead of operators with a proactive, regulatory framework. Now Sacramento is one of the few jurisdictions in the Capital Region to move forward with regulations for the cultivation, manufacturing, distribution, retail and testing laboratories of commercial cannabis. With Sacramento quickly becoming a base of operations for commercial cannabis, the disruption in the industrial real-estate market has been significant. Entrepreneurs look- ing to enter the space have flocked to approved zoning areas primarily clustered in North Sacramento and the Power Inn neighborhoods with existing concentrations of industrial, heavy commercial and light warehouse facilities. That’s sparked an industrial-property frenzy that is driving up real-estate prices, displacing other commercial tenants and creating undue concentration in some neighborhoods. Prop- erty values for commercial space in approved cannabis “green zones” are roughly double the cost before legalization, with rents four or five times the norm. Meanwhile, non-cannabis businesses competing for similar spaces have become casual- ties in the chaos. “When you take a step back and look at the totality of the state of California, you recognize that there are a few hun- dred blocks of commercial real estate, more or less, in this state that you can currently operate in,” says Daniel Con- way, managing partner of Truth Enterprises, an investment firm in Sacramento focused on the legal weed industry. “So that alone creates artificial demand that inf lates prices.” The expense of getting commercial cannabis spaces and businesses up to regulatory code can be crippling, pushing out smaller and less-experienced operators. But some sav v y entrepreneurs say they have found a foothold by integrating multiple aspects of the supply chain — ei- ther under the umbrella of one business, one space or both. With so much ambiguity in the cannabis space, and so much change expected in the coming months as the regulated market gets on its feet, these entrepreneurs are leaning on past knowledge and experience, and a sophis- ticated approach to get out in front of the ever-changing market. REAL-ESTATE CRUNCH Of California’s 482 municipalities and 58 counties, fewer than one-third of California cities allow any kind of cannabis busi- ness to operate within their borders, and approximately 70 If you’re an AEC professional who has yet to use 3D scanning, what are you waiting for? Don’t be afraid to make the leap. CSDS can help you hit the ground running by providing the guidance and expertise you need to incorporate 3D scanning & imaging into your daily workflow. Benefits of 3D scanning include: • • • • • Save time: Capture millions of 3D dimensions in seconds. Gain precision: Avoid costly errors and site revisits. Enhanced deliverables: Estimate, analyze, design and report in true 3D. Preservation: Capture and preserve new and historic construction, digitally. Confidence: Gain expertise by bundling a scanner rental with on-site training. Call today to schedule an on-site demonstration on your next project! SACRAMENTO | DUBLIN | FRESNO | LOS ANGELES | SAN DIEGO | 54 | August 2018 916.344.0232