Comstock's magazine 0818-August 2018 - Page 55

Rendering of planned We Grow CA facility. We Grow CA is on track to open Sacramento's first cannabis campus — the highlighted area outlines its 250,000 square feet of space located on Elder Creek Road in the Power Inn district. photo : eli margetich , rendering : courtesy of we grow ca percent of counties have outright banned commercial canna- bis in any form in unincorporated areas. “If I could describe the city’s approach to cannabis, it’s been one of pragmatism,” says Joe Devlin, Sacramento’s inau- gural chief of cannabis policy and enforcement. “There was a cannabis community before we started regulating, and the ap- proach/belief was that the best way to make sure it’s safe for our consumers was to make sure that it was regulated.” With so many cannabis entrepreneurs converging on Sac- ramento, a commercial property in the City’s approved green zones that includes ample power (the average commercial grow facility uses 60-80 watts of electricity per square foot, to an average facility’s 5-10 watts), and proper setbacks (includ- ing a 600-foot buffer from schools and parks) could command an additional $20-$30 per square foot above the already in- flated prices, says Jay Richter, vice president with Sacramento’s Kidder Mathews. If the property already has a conditional use permit (CUP), it could fetch an added premium of up to $200 per square foot. The high demand for conforming green-zone properties means high demand overall, driving up the value of noncon- forming properties as well. That’s a real problem for other commercial tenants who are being priced out of the market. Tracey Schaal is the executive director for the Power Inn Alliance, which represents 11,000 property owners in south- east Sacramento. The Power Inn area has drawn the largest concentration of commercial cannabis operators primarily because of its abundance of industrial space, central location, strong transportation access and a cost-effective electrical provider in SMUD. Prior to the cannabis real-estate boom, the Power Inn dis- trict had a vacancy rate of 8 percent. That’s now plunged to 2 percent, which Schaal says is unhealthy for an industrial area and is displacing non-cannabis businesses. “Other industries either can’t find space, or if they can, they can’t afford it,” she says. “Diversity is the WF7V66W76gVV6ג6vPF( BvBW7Fr'W6W76W2F&RF76VBBF22ЧVrfW"FRF7G&7B( ФFFVR2'VgW&GW&RVf7GW&r'W6W70FRvW"F7G&7Bf"ffRV'2'WB2r&VrW6V@WB( FW&R2Frf&RB&V6&R67Bf"6RЦRƖRRVf7GW&r( R62( vR6( Bff&BF&FW2ƖRF2F7F6Ɩf&( FVRW7Br&6PFR67BbfRB&W6r27W'&VBv&f&6R^( 066FW&r&V6FrF&VvFFRrFW&67G2`7Fr( ėN( 2fW'Fff7VBFV66f"RFR( ХFRF7G&7N( 266VG&Fb6&2&FVBFRrЦW"Ɩ6RF&WVW7B6g&FR6Gb67&VFFRV&W"b6&2'W6W76W2vVBFW&FRvFগG2&&FW'2FR67&VF6G6V6fFVBF6VwW7B#67F66r6УSP