Zoned Residence, an Arizona property advancement and renting company in the cannabis market, recently amended an existing lease contract in Tempe with their tenant, Hana Meds, which runs dispensaries in Kingman and Green Valley. The Tempe Medical Cannabis Organisation Park is home to Hana Meds’ corporate headquarters and growing center.
On November 1, an additional 15,000 sq ft of growing space will be contributed to the currently-rented area, according to Markets Insider. This will increase the space to 30,000 sq ft with 20,000 sq feet for growing and processing. An extra 10,000 sq feet of warehouse is undeveloped but will end up being storage area while enhancements to the structure are completed.
Bryan McLaren of Zoned Characteristics stated, “Expansion at the Tempe Residential or commercial property will drive increased earnings and profitability in the coming quarters as increased regular monthly lease payments take effect. Our anchor occupant now occupies more than 50% of the 60,000 square feet of total rentable area under long-lasting lease arrangements with ensured rent escalators throughout their terms. As a result of our development efforts, the Tempe Medical Cannabis Service Park has actually ended up being a premier facility for the market in Arizona and a constant income-producing property for the business.”
The additional space raises the monthly rent for the renter from $25,500 each month to $30,500. As the spaces are completed for use the lease will increase incrementally until it reaches $55,500 monthly. Workplace and conference space takes up 2,500 sq ft of the leased property.
McLaren also stated, “Our immediate and long-term strategies include establishing the staying 30,000 square feet to be leased to other entities in differing segments within the medical marijuana market to enhance the diversification of our tenant base.”
Picture: Zoned Residences