Vantage Builders recently completed construction of a medical marijuana cultivation, processing and dispensing facility in Bridgewater for Theory Wellness Inc.
The marijuana industry is poised to be one of the fastest growing segments of the Massachusetts economy over the next few years. According to the data firm New Frontier, legal marijuana sales are expected to increase from approximately $100 million in 2017 (medical marijuana alone) to more than $1.1 billion (medical and recreational) by 2020, a staggering anticipated growth rate.
Construction is one of the more traditional market segments that will see a tremendous impact from this fledgling industry – from building large-scale cultivation and growth facilities to renovating space for retail sales outlets. Medical marijuana cultivation facilities and dispensaries are already coming on line, with recreational facilities set to follow soon, following the passing of last fall’s ballot measure legalizing adult recreational use.
Cultivating, growing and processing marijuana, whether for medical or recreational use, is a very complicated, complex and precise process, more so than would initially be expected. And the process begins long before the first seed is planted. It begins with the construction of the facility. Vantage Builders has gained significant experience in this market, most recently with the completion of a medical marijuana cultivation, processing and dispensing facility in Bridgewater for Theory Wellness Inc.
If you are interested in getting involved in this industry, here are some initial considerations to take into account before you begin construction.
Building selection. Generally speaking, it is industrial space that will be utilized for cultivation facilities. However, the work that will be going on inside the building is not typical industrial usage. It is closer to food processing or medical use and the systems requirements reflect that. Cultivation facilities need a tremendous amount of power, in the range of a minimum of 1,500 amps for a 10,000-square-foot building, as well as significant access to water (irrigation, reverse osmosis water systems). The building structure is likewise important, particularly given the amount of mechanical equipment that needs to be roof-mounted or hung on interior walls and ceilings. A prefab metal building can work with the proper supports included; however, a block and a steel building, while more expensive, is a more suitable choice. Additionally, the building must provide tight control for temperature and humidity, both critical to growing, which often rules out older facilities.
Design/build. The best approach to constructing a facility is for the general contractor to utilize a design/build model. In this model, the GC will work closely with the owners to design the facility that will best address their particular approach to growing marijuana. Each company has a lead grower who has specific guidelines in mind for maximizing their crops. These methods will greatly impact the building layout and systems. For example, if the lead grower can work with LED lighting instead of metal halide, approximately half the energy is required. Design/build generally also shortens the project timeline, which is absolutely critical – any time they are not growing, the company is losing money.
Budget. The total cost per square foot to build a cultivation facility is closer to what is typically seen in hospital work than in usual industrial space. Ultimately, given the systems requirement and integrity of the building envelope, the building has more in common with a cleanroom environment than industrial space. Vantage Builders has seen projects typically fall in the $175-$200 per square foot range for buildout, with close to $100 per square foot of that cost for the MEP (mechanical, electrical, plumbing) systems.
As with any construction project, there are costs and considerations involved in building a marijuana cultivation facility. But with proper design and planning, and an experienced team, the costs and time-to-market can be reduced significantly.
Ryan LaVangie is the senior vice president of sales and marketing for Vantage Builders, a general contracting and construction company based in Waltham. For more information, please visit www.vb-inc.com or follow us on Twitter at @VantageBldrs.
