Dispensary’s Tempe Medical Marijuana Cultivation Center Is Expanding

Zoned Properties, an Arizona real estate development and leasing company in the marijuana industry, recently amended an existing lease agreement in Tempe with their tenant, Hana Meds, which operates dispensaries in Kingman and Green Valley. The Tempe Medical Marijuana Business Park is home to Hana Meds’ corporate headquarters and cultivation center.

On November 1, an additional 15,000 sq ft of cultivation space will be added to the currently-rented space, according to Markets Insider. This will increase the space to 30,000 sq ft with 20,000 sq ft for cultivation and processing. An additional 10,000 sq ft of warehouse is undeveloped but will become storage space while improvements to the building are completed.

Bryan McLaren of Zoned Properties said, “Expansion at the Tempe Property will drive increased revenue and profitability in the coming quarters as increased monthly rent payments take effect. Our anchor tenant now occupies more than 50% of the 60,000 square feet of total rentable space under long-term lease agreements with guaranteed rent escalators throughout their terms. As a result of our development efforts, the Tempe Medical Marijuana Business Park has become a premier facility for the industry in Arizona and a consistent income-producing asset for the company.”

The additional space raises the monthly rent for the tenant from $25,500 per month to $30,500. As the spaces are completed for use the rent will increase incrementally until it reaches $55,500 monthly. Office and conference space takes up 2,500 sq ft of the leased property.

McLaren also said, “Our immediate and long-term plans include developing the remaining 30,000 square feet to be leased to other entities in varying segments within the medical marijuana industry to improve the diversification of our tenant base.”

Photo: Zoned Properties