Marijuana Cultivators Are Buying Deserted Greenhouses for Millions

Agricultural real estate is booming in Salinas Valley, California thanks to marijuana. One real-estate agent in the area is making more on a single commission than an average American’s annual salary – netting figures like $78,000 on a $2.6-million deal. The “land rush” started because of marijuana cultivation bans in canyon and forest areas in Big Sur.

The ideal location to grow marijuana is in greenhouses where security efforts are enhanced, according to the Los Angeles Times. The taxes on these properties will start out at $15 per sq. ft., but, by 2022, will rise to $25 per sp.ft.

CEO of Harborside Health Center, Steve DeAngelo, said, “California in general, and the Salinas Valley in particular, is perfectly positioned to do with cannabis what it has done with many other fruits and vegetables, which is claim 50% or more of the national market.”

Salinas County has the perfect climate for growing marijuana. Current marijuana growers in the area say that four to five crops per year can be harvested in their climate. Studies suggest that it costs half as much to grow marijuana in a greenhouse than under artificial climate and lighting controls.

Realtor Chuck Allen said, “It’s kinda funny actually. A year ago, I didn’t even know what it [marijuana] looked like. I thought they were Christmas trees.” Allen went from knowing little about marijuana to selling huge greenhouses to marijuana growers. “Almost every greenhouse property south of Salinas is being prepared for or being used for cannabis.”

Properties that sat empty and unused for several years, even for sale on open real estate markets, had no interest until the marijuana industry came about in California. Now, these properties are selling for millions of dollars.

Photo: Mark Bolster/latimes.com