....and all the infused products licensees just gasped.

[Texas Kid]

If you think rent is high, try buying something that is zone accordingly, we are seeing $120-$150 bucks a square foot for stuff that wouldn't sell at $35 bucks a foot 2 years ago.

There is still plenty of a market for extracts and edibles...most producers can not even remotely keep up with demand right now...one of our stores is seeing between 200-220 recreational customers a day...There is a group that just posted $42 million in gross sales in one quarter...Aurora just ok'd 21 new rec licenses...demand far out ways supply right now and will for the foreseeable future..hell we are just about to go into the first ski season with rec sales...going to be crazy demand...also keep in mind that there are not that many MIPS licenses out there and no new ones available for the time being and in Denver no new applications even excepted till Jan 1, 2016

 

[Texas Kid]

WS is right, water rights cost more than the actual land out here

 

[toquer]

My infused product requires more natural resources than growing flowers themselves. Ohh and time. Found 2acres in Nevada with water rights only 9000' above sea level. Now I just need to find the right bees!

 

[Z-ro]

Yes but we're talking greenhouse here not warehouse inside denver city limits. And at 2.1 million per month in rent, you can't tell me there isn't thousands of acres of ag land for sale with water rights that could be afforded without throwing your money away renting. Yes I know it was internal, and one of them has to be Dixie elixirs, but just doesn't seem like it makes sense financially. If the demand is so high, no pun, then why is the state 20 million short of the 30 it projected it tax revenues for the first six months?

 

[muir]

the property owner and water rights holder is a publicly traded company, correct? There's looks of angles to consider when looking at this deal.

 

[Texas Kid]

Dixie just has over 40,000 sq.ft in their new warehouse. not sure about $2.1 million a month in rent anywhere but I do know where there are 60,000 sq.ft. spots for sale with $5.4 to $5.8 million dollar offers on the table and those aren't even built out yet..there are just not to many places to put greenhouses like you would think, zoning is a bitch and local exceptance is even more complicated..Pueblo and Freemont county and a couple places on the western slope are about the only places that have created zoning and opened their doors to large scale greenhouse production...I was in the middle of a 1000 acre project in Pueblo but the water rights ended up being the death nail in the whole thing..Boulder has a special use overlay district created for cultivation but still nothing that big is being pursued, I think that the Pantera property deal is the biggest thing going and I am not sure that will ever make it to completion....there is a pretty decent size complex going up right at 8th and 25 right now with 10 or so mid size greenhouses and about a 20,000 sq.ft warehouse right in the middle, looks badass but still not a large scale setup by anyones imagination...medical sales are exceding recreational sales by a long ways so the state is not getting the tax revenue they projected...I think in April we did $54 or so million in total gross sales but only $22 million was recreational at the high as tax rate, the rest was medical at an almost non existant tax scale for the state and the medical roles are increasing at a really fast rate

 

[We Solidarity]

Yes but we're talking greenhouse here not warehouse inside denver city limits. And at 2.1 million per month in rent, you can't tell me there isn't thousands of acres of ag land for sale with water rights that could be afforded without throwing your money away renting. Yes I know it was internal, and one of them has to be Dixie elixirs, but just doesn't seem like it makes sense financially. If the demand is so high, no pun, then why is the state 20 million short of the 30 it projected it tax revenues for the first six months?

re-read the article it's a 2.1 million dollar annual lease for three years, probably going to be closer to a quarter mil a month in facility overhead. And dixie definitely isn't leasing one of these, I know one of the head growers personally and honestly have been considering submitting a resume...I've known of these guys since I was a child and have collaborated with them on projects in the past, I've seen their work, passion, and integrity and am pretty stoked to see it's them setting the standard for this industry and not a bigger player...

 

[Green Dot]

Too bad the state is capping greenhouse grows at 1800 plants...

 

[Green Dot]

Compound that with the fact that the state will make these large grows prove that they are moving 85% of their inventory each week or they will start stripping plant counts! makes it a huge gamble.. Demand was met 2 years ago, price has stabilized ~200/oz.. Nobody who sells rec has a shortage of bud, wholesale market is a fraction of the size of medical.. Rec shops were already vertically integrated and prepared to meet demand of rec ahead of time..

People are about to lose their asses.. I know of several million watt indoor grows up by the airport with no dispensary to sell to.. Folks are in for a rude awakening...

 

[Texas Kid]

Props to you Green Dot...my boy brought some of your gear to the warehouse the other day and it was stellar

 

[Green Dot]

What flavor did you try?

 

[Texas Kid]

He had about 10 of them but the Yeti and NYCD stood out

 

[Tuku]

Probably how the green houses in the Netherlands look...but with more cowbell. Haha

Got any photos?

 

[true grit]

I'm lost @Texas Kid says demand outweighs supply and @Green Dot says more bud than customers. Is this y'all's individual experiences with your own biz's? Cuz I've been hearing folks aren't having problem selling product through their business or wholesales as TK said.

If TK is just talking extracts and concentrates- sounds like an easy solution to too many buds- make extracts.

 

[muir]

I have heard of much higher priced "med pounds" and extremely low "rec pounds" on the wholesale market. I also hear of a movement in Boulder by vertically integrated shops to boycott wholesale from "unaffiliated" grows. Shit will be interesting for sure.

 

[We Solidarity]

I'm lost @Texas Kid says demand outweighs supply and @Green Dot says more bud than customers. Is this y'all's individual experiences with your own biz's? Cuz I've been hearing folks aren't having problem selling product through their business or wholesales as TK said.

If TK is just talking extracts and concentrates- sounds like an easy solution to too many buds- make extracts.

Idk if there is more bud than customers...I've heard rumors from some shops in the area of wholesaling 40-70 pounds a week and there are 30+ minute waits at all the good spots in town...places barely keep edibles in stock and while bud sales aren't as high with the rec market there are still tons of dual license centers that can still sell large quantities of nug to medical patients...there is definitely a HUGE demand still and it's only been getting bigger the last few months, like TK said with ski season right around the corner it's about to get ridiculous.

The guys who are building these greenhouses aren't looking at the Colorado market. In three years, when the leases are up, it is extremely likely that the nation will have legalized, to some extent, inter-state sales of infused products. A two acre greenhouse is a test run for these guys anyways, they build multiple 4-10 acre greenhouses every year.

 

[true grit]

Ya that's along the lines of what I've been hearing as well on wholesaling. And if shops are good- always busy.

Would be nice to see interstate action inupcoming years though for sure

 

[Green Dot]

I have heard of much higher priced "med pounds" and extremely low "rec pounds" on the wholesale market. I also hear of a movement in Boulder by vertically integrated shops to boycott wholesale from "unaffiliated" grows. Shit will be interesting for sure.

We've been contacted by the vig (vertically integrated group.) about a collusion effort to only do commerce with other vigs. Get lowest reasonable wholesale price without bringing in the $25 ounces... That would devalue any current business.. It would do great for us though.. More processing as it would be the only viable option for mass quantities of weed.. People seem to forget that there are only a little over 4 million people in the entire state... Almost 13 million in he la area...

The med put out its first market study last month and they clearly showed that rec is tanking.. Med sales are 2:1. The dors revenue projection for rec was off by 21m, and the trend continues.. Once the 85% law gets signed into effect, walmarts are gone. You name it, back door busts, loss of plant count... We've also been warned of the 2016 energy restrictions proposed by he state...

Shits going to be crazy out here

 

[Texas Kid]

All edibles and concentrates have to be produced under a MIPS license and with the new inspections and regulation knocking people out and on top of Denver proper not allowing for new licenses till Jan 1, 2016 there just are not that many producers out there in the legal game right now. Plus you have to have a huge supply of raw material to produce the products and that in itself is tricky right now. Grows associated with MIPS license holders are just now coming online and trim from OPC production is hard to keep consistant and at the volumes needed to keep up. Most of the places I am involved with can not afford to wholesale anything due to the overwhelming internal demand and the few that we do wholesale to have built their customer base off our product because they can not produce at the quality level we are right now. As fast as we put edibles on the shelves, they are gone and our flower production can not keep up at all with the customer demand..I know this is the case for a ton of people. One store in our group has 200+ recreational customers a day which is crazy when you think about it

 

[true grit]

Ya I could see that TK- from what I've been able to tell as you said not many folks are really building business on top shelf flowers. Plenty of nice concentrates, etc but not a lot of top shelf flowers.