ARIZONA NEWS

Broker: Arizona at risk of growing more medical marijuana than market demands

Mar 25, 2015, 9:34 AM | Updated: 9:35 am

...

PHOENIX — Concerns are growing over the potential for Arizona to face an overabundance of medical marijuana.

In 2014, there were 63,417 active medical marijuana cardholders and more than 1 million square feet of working cultivation facilities for the plant. But according to data gathered by Benchmark Commercial Real Estate, the amount of land the state has approved for potential pot cultivation is much larger than what is needed in the current medical marijuana market.

“We were a little bit surprised to find out that there is 26 million square feet of land that is attached to approved cultivation properties,” Roy Ginnell, broker and owner of Benchmark Commercial, said.

Ginnell said he and his team have spent nearly a year collecting data from Arizona’s medical marijuana cultivation sites and dispensaries. He said he believes if all of the land that is approved to grow pot were currently being used, it could have a negative impact on the medical marijuana industry.

“We’re already five-fold the amount of square footage under permit than what is needed to source medicine for the patients and cardholders here in the state,” he said.

Ginnell said it comes down to simple supply and demand economics: If too much pot is grown, medical marijuana prices will plummet, which is temporarily good for consumers but bad for the industry as a whole.

“To have (prices drop) any further, I think you would see the potential for groups going out of business,” he said. “If price wars continue to happen, they’re likely to have to fold up shop.”

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

Ruben Gallego...

KTAR.com

Democrat Ruben Gallego projected to beat Kari Lake, become Arizona’s next US senator

Democrat Ruben Gallego was projected to defeat Republican Kari Lake and become Arizona's next U.S. senator on Monday night.

2 hours ago

The five Maricopa County Board of Supervisors seats were up for grabs during the 2024 election....

KTAR.com

1 Maricopa County supervisor race could be headed to a recount

The contest to fill Republican Bill Gates’ seat on the powerful Maricopa County Board of Supervisors could be heading to a recount.

2 hours ago

The eastbound lanes of I-10 are closed at Warner Road due to a car crash according, to the Arizona ...

Roxanne De La Rosa

I-10 eastbound lanes closed at Warner Road

The eastbound lanes of I-10 are closed at Warner Road due to a car crash according, to the Arizona Department of Transportation.

3 hours ago

Buckeye Police traffic officer completes 3-week course...

Aaron Schmidt

Buckeye officer completes motorcycle training as department reestablishes motor unit

Dante Herron, a Buckeye Police traffic officer, completed his certification to become part of the department's new motorcycle unit, authorities said.

4 hours ago

A pregnant woman's unborn baby died after being involved in a multiple vehicle crash Sunday afterno...

Roxanne De La Rosa

Crash leaves pregnant woman’s unborn baby dead in Phoenix

A pregnant woman's unborn baby died after being involved in a multiple vehicle crash Sunday afternoon, according to authorities.

5 hours ago

Arizona's 6th Congressional District 2024 election updates...

KTAR.com

Republican Juan Ciscomani neck and neck with Democrat Kirsten Engel in race for Arizona’s CD6

The race between Republican U.S. Rep. Juan Ciscomani and Democratic challenger Kirsten Engel in Arizona's 6th Congressional District remains too close to call.

7 hours ago

Sponsored Articles

...

Morris Hall

West Hunsaker, through Morris Hall, supports Make-A-Wish Foundation in Arizona

KTAR’s Community Spotlight this month focuses on Morris Hall and its commitment to supporting the Make-A-Wish Foundation in Arizona.

...

Bright Wealth Management

Here’s how to save money on retirement planning

PHOENIX -- With inflation still going on, people planning on retiring still face many issues on when they can retire and how much money they need to achieve it.

...

Day & Night Air Conditioning, Heating and Plumbing

It wouldn’t hurt to get your AC checked after Arizona’s excruciating heat wave

A well-maintained air conditioning unit is vital to living a comfortable life inside, away from triple-digit heat in Arizona.

Broker: Arizona at risk of growing more medical marijuana than market demands