Tenant banking on cannabis law reform

required a secure indoor facility that would stand up to the rigours of certification yet still provide close proximity to law enforcement, transport and distribution networks.

Helius was cultivating cannabis initially for research and, ultimately, to produce therapeutic products.

The East Tamaki site allowed for precision indoor cultivation and control over the growing environment for medical-grade cannabis.

CBRE’s national director of industrial and logistics, Claus Brewer, said places such as Colorado and California had shown the effect of legal cannabis and manufacturing plants on the industrial property market.

‘‘Whether it’s plant-based meat or more generic growing or processing facilities, essentially the repurposing of industrial stock with low-stud height or excess office space to indoor horticulture space could be the future of farming in urban environments, providing further opportunities for savvy landlords.’’

The change of use allowed investors to achieve rental returns comparable to newer builds.

It also allowed the occupier to be able to achieve greater economic benefits from an older-style facility, he said.