A cultivation facility is an industrial shell wrapped around a process, and the process sets the building. Power service, HVAC and dehumidification, water and drainage, benching, lighting, and the separation of cultivation from processing and storage all had to be designed to the license before a permit was pulled. We scoped and bid the tenant improvement. Getting the mechanical and electrical right at design is the difference between a facility that runs at capacity and one that never does.
Cultivation tenants in a permitted jurisdiction pay a significant premium over conventional industrial rent, because the supply of legally improved space is capped by zoning rather than by land. Adelanto is one of the few High Desert cities that permits the use, and the city's cannabis program funds a meaningful share of its general budget, which makes the policy durable rather than political. The asset was underwritten to recover its capital in the near term and hold operating margin well above conventional industrial thereafter.
