SAN DIEGO—With the likelihood of a 2016 California ballotinitiative to legalize recreational marijuana along with new Cityof San Diego zoning laws, Cassidy Turley realestate experts recently took a closer look in evaluating thepotential impact such an approval would have on the industrialmarket. In doing so, the firm looked at cities such as Denver,where marijuana legalization has fueled a boom in demand.

“The legalization of marijuana is a hotly debated topic on manyfronts” says Todd Davis, senior vice presidentwith Cassidy Turley's San Diego office. “While it remains to beseen how the movement toward legalization progresses in California,it's interesting to observe the impact being felt in markets suchas Denver, where marijuana retail and industrial grow facilitiesare absorbing available space at an incredible rate.”

San Diego recently adopted a new zoning plan for medicalmarijuana dispensaries that currently allows no more than four ineach council district. Dispensaries cannot be within 1,000feet of schools, libraries, churches, parks, child-care facilities,and drug and alcohol rehab facilities. There also must be a100-foot buffer from residential zones. The zoning plan stillawaits approval from the Coastal Commission for shoreline areas.These very defined restrictions drive the scarcity of availablespace, creating huge value for owners of real estate that meetthese guidelines.