Weed Startups Will Make Warehouse Rents More Expensive in L.A. and Boston

  • Cities with legal weed see demand surge for industrial space
  • CoStar study saw rents in Denver, Seattle outpace other cities
Photographer: James MacDonald/Bloomberg
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Industrial rents in already-pricey cities like Los Angeles and Boston are poised to rise further thanks to one burgeoning industry: cannabis.

Marijuana startups are snapping up space in those cities as part of a wave of legalization that was set in motion by ballot-box victories last November, when eight states voted to permit cannabis in some form. California and Massachusetts will begin allowing residents to purchase recreational pot -- not just medicinal marijuana -- making the states especially attractive to entrepreneurs.