As Colorado recognizes the one year anniversary of legal sales of recreational marijuana, Business Leaders Predict 2015 Trends
DENVER (December 18, 2014) — Following a year in which investment, entrepreneurs and ideas flooded Colorado’s legal cannabis market and fueled a construction and real estate boom, industry leaders are predicting that 2015 will be a year of expertise exportation, while the industry grapples with growing pains.
In recognition of this important anniversary, SMPS Colorado will gather Colorado’s architecture, engineering and construction community with cannabis industry leaders for “SMPS Colorado Presents: Is the Grass Greener? Colorado’s Legal Cannabis Industry and the A/E/C Industry.” The January 20 half-day event convenes three expert panels to cover dispensary and cultivation facility design/construction, legal issues and finance. The Cannabusiness Accelerator is the producer of the event on behalf of SMPS Colorado. In advance of the Symposium, cannabis industry leaders made the following predictions:
Cannabusiness expertise and best practices will become a Colorado export in everything from construction to finance.
The cannabis industry is an entirely new sector, and as states come online, there is a need to implement best practices. Colorado ganjapreneurs boast valuable expertise and will expand their work to other recreational markets coming online such as Washington, Oregon, Nevada and Alaska. These players will position themselves as industry names.
“In 2015, we will see new dispensaries–both medical and recreational–in several states, and more instances of successful dispensary brands and teams crossing state lines and opening up new locations in new markets,” says Megan Stone, owner of The High Road Design Studio and an interior designer specializing in marijuana dispensaries. Stone will participate in the Dispensary panel, a multi-disciplinary panel that will discuss dispensary design considerations, best practices, hurdles and solutions, and technology and energy savings opportunities.
Nathan Mendel, LEED AP, Your Green Contractor, Inc., predicts mergers and acquisitions in the market: “We are seeing a lot of new investments coming into the industry as the capital markets begin to understand the potential of this industry. In many cases these new players are looking to get in as quickly as possible, which often leads them to purchase an existing operation.” Mendel continued: “For the A/E/C community, this means plenty of opportunity to remodel outdated or inefficient spaces as these investors look to maximize their return.” Mendel will be a panelist on the Cultivation/Grow Facility Panel.
State and private entities will further develop robust financial and regulatory infrastructure.
As Colorado marks the one year anniversary of recreational marijuana, the Centennial State’s cannabis industry is still limited to doing business in cash. The Fourth Corner Credit Union is expected to learn before Christmas if it will be issued a master account number by the Federal Reserve, thereby allowing its clients access to the country’s electronic banking system.
Colorado’s financial services commissioner at the Department for Regulatory Agencies Chris Myklebust will deliver the event’s open keynote address. A vocal proponent of developing the state’s cannabusiness financial infrastructure, Myklebust will address the Fourth Corner project as well as other financial solutions for the industry.
“There will be progress in 2015,” Myklebust notes. “The states will continue to take the lead in expanding legal, regulatory, and taxation models for cannabis-related businesses. Congress will begin to have some substantive discussions about marijuana, especially medical marijuana, but I don't envision the wave of interest needed to promulgate or pass meaningful legislation at the federal level during the year.”
Myklebust continued: “Existing financial institutions may begin exploring the due diligence necessary to serve the industry. A few may even wade into serving marijuana businesses as more and more leaders within the financial services industry are becoming comfortable with federal guidance concerning marijuana banking. The efforts will remain in the shadows for the most part. Progress will be painstakingly slow because federal guidance is not a substitute for federal law, and because any financial institution by its very nature adds risk slowly regardless of the line of business it pursues.”
The industry will make use of better technology and marketing.
“LED lighting will gain more acceptance with rapidly evolving technology and an interest in reducing energy consumption,” said Brett L. Gilbert, President of Competitive Edge Engineering. Gilbert will join Stone on the Dispensary Panel.
Mendel concurs: “2015 will be the year that LED technologies become widely accepted. We have been waiting for this technology to prove itself with yields comparable to, or better than, traditional HPS lighting, and the results seem to be coming in. As the proof rolls in, we expect to see large scale changes to these fixtures so growers can capitalize on the significant energy savings and cooling reductions available. In addition, it looks like rebates will be available as Xcel looks for ways to reduce the burden on the electrical grid that the number of grows in Colorado is causing.”
MKK Consulting Engineers’ Senior Marketing Manager Kim Robertson serves as SMPS Colorado President. She notes: “Due to high energy consumption and demand among cannabis industry businesses, the need for more sustainable building practices and design is crucial in 2015. With the adoption of the new IECC 2015 code, Denver and other similar municipalities are providing some exemptions from energy consumption regulation for cannabis trades. This, however, should not exempt these businesses from being good stewards of the environment. Proper energy efficient design should still be taken into account at all aspects of the project.”
Meanwhile, dispensaries will learn they need to market themselves better. Stone adds: “Cannabis business owners are starting to take the design and experience of their retail stores seriously and are investing in their shops in ways that will help them sustain successful businesses and brands.”
The SMPS Colorado symposium on Colorado’s Legal Cannabis Industry and the Construction Community will take place Tuesday, Jan. 20, at the Denver Athletic Club. For more information visit www.cannabusinessaccelerator.com.
