KANSAS CITY, MO (KCTV) -- A warehouse is no longer abandoned as it is now a construction process and Jack Mitchell sees the potential, although indoor grow operations are complex.
Mitchell runs a company that's filed several applications for marijuana cultivation and dispensary facilities, one state requirement was access to a building where a cannabis operation could operate.
“We're hoping to get a license and we're going to take some risk,” Mitchell said.
One risk is the preparations. Mitchell is already preparing the building even though his application for a grow license hasn't been approved yet.
“We're going to go ahead and keep planning, engineering plans, construction plans,” Mitchell said.
His lease is contingent on his license and he's not alone.
“It was a tsunami of real estate offers,” Sheryl Vickers, a local realtor said.
Vickers is a realtor who's handled several transactions in the past few weeks of businesses scrambling to find locations for a cannabis operation.
“There was a lot of investment that was nonrefundable for these potential licensees,” Vickers said. “There are places in Kansas City that haven't been used in years so it's a good price for something."
“We're aware of some well-financed groups that took the risk and bought real estate they'll have to dispose of or find another use for or something,” Mitchell said.
The state has received more than 2,100 applications but will only approve 348.
“It's definitely in the hundreds of millions of dollars. Anytime you create a business with that level you're going to support a lot of investment and a lot of people,” Mitchell said.
Mitchell plans to minimize his risk by re-purposing his warehouse if the license doesn't pan out, maybe for hemp production, but until December, he's cautiously optimistic.
“I'd say there's a lot of nervous people out there,” Mitchell said.
Nervous about an investment in what could be a booming industry if you can get approved.