Getting your Commercial Grow Room setup right is the most critical step! Such spaces must offer a clutter-free space with zero inclimate conditions or pests. The entire setup cost depends on several factors such as building type and design. Let’s understand how you can cash in on this rapidly-growing industry while keeping your costs low.
We’re breaking down the average startup cost of indoor and outdoor commercial grow houses operations in the US.
Why Invest in a Medical Marijuana Growth Facility?
As the legalization of marijuana has become a hot topic across the United States for medical or recreational use, you’ve more than likely seen hundreds of articles about this lucrative industry. We’re no longer talking about a million-dollar industry. Try billions. But before images of ROI dollars begin dancing through your mind, make sure you understand the risks, and the commercial grow room setup cost associated with a commercial medical growth facility.
Starting a wholesale cannabis grow room is a substantial commitment. Add licensing fees to the list of expenses you’ll run into. This comprehensive state-by-state guide breaks down the licensing costs of a marijuana-growing operation in every state. For example, as of February 2019, these were the fees related to licensing in California alone.
Annual license application fees:
Annual license fees:
Should I start an indoor grow room?
Starting an indoor grow house will be your most expensive option. The reasoning is clear: it will cost you more to maintain an ideal environment for cannabis growth artificially. Temperature and humidity control systems and grow lights will undoubtedly impact your commercial grow house startup costs.
However, indoor growth comes with benefits. Maintaining control over your growth environment gives you the power to cultivate a higher quality product to sell at a premium price. Additionally, some states such as Connecticut and Illinois only issue licenses for indoor grow rooms. Stay on top of your local regulations to see which cultivation type works for you.
How can commercial grow house design impact my overall costs?
When building a grow house or choosing a grow room design plan, you’ll want to keep one word in mind: efficiency. It’s about more than keeping your costs as low as possible. As marijuana continues to be legalized and grow operations pop up across the nation, prices for the crop will drop. Keeping your costs low is the best way to stay competitive in the growing market.
Start with the initial setup of your facility. For example, LED technology can save nearly 50 percent on HVAC costs. Labor efficiency can make or break your overall costs of building a grow house for large-scale grow rooms. Follow an obvious workflow to keep travel to a minimum. This example workflow is a great way to ensure that employees follow efficient assembly line protocols. Which drives down commercial grow room setup costs as a result.
Mother Room >> Clone Room >> Trim Room >> Dry Room >> Cure Room
Your building should also be designed to prevent one issue from affecting your entire crop. Having separate rooms rather than one open-concept workspace can quickly stop a pest or fungus from spreading across your entire crop. Additionally, building a grow house from prefabricated metal buildings will keep pests away, decreasing the chances of insects becoming a large problem. Choosing the wrong building materials and design could cost you several hundred pounds in lost crops. When designing your prefab metal grow room, opt for custom walls and sealed doors rather than curtains for maximum protection. Although this will impact your commercial grow room setup cost, you will be happy you did. Your layout can also be custom-designed with viewing windows for each grow house and workspace to prevent contaminants from spreading through open doors.
Typical Commercial Grow Room Setup Cost
- Warehouse rent (per year) – $50,000+
- Build out– $60,000
- Growing equipment – $150,000
- Lighting system – $120,000
- Alarm & Security System – $45,000
- Licensing & legal fees – $55,000
- Direct costs (first months before profit) – $200,000
- Administrative expenses – $50,000
- Salaries – $100,000 – $150,000
Total = $830,000 – $980,000
There are many costs, direct and indirect, associated with any Medical Marijuana Growth Facility. The average cost to produce a pound of cannabis between an efficient, well-managed facility and the average grow facility is almost $250 per pound.
What are my outdoor options for wholesale cannabis cultivation?
While outdoor grow operations are not legal in every state, they come with benefits. Avoiding the initial expense of HVAC systems and lighting lowers your startup costs. Additionally, plants grown outdoors tend to be larger than those grown indoors, adapting to different environmental conditions. While you may only grow in ideal seasons, you may yield a more abundant crop within that timeline.
As far as your average startup costs are concerned for outdoor cannabis growth, it’s worth mentioning that you may need a combination facility for wholesale operation. For example, while the Mother Room may be suited for outdoor growth, you may need an indoor facility for drying and curing your crop.
Mother rooms and clone rooms generally have the most expenses by way of necessary equipment for controlled growth. By outsourcing this part of the operation to the outdoors, you can lower your startup costs.
Greenhouses also provide a happy medium between both options. A greenhouse’s typical startup cost averages around $50 per square foot. However, a less reliance on your local weather conditions means more efficient growth and higher quality harvests.
Your grow room should fit your growing style, no matter which cultivation type you choose. Your building should be custom designed to meet your growth style, workflow, and individual needs.
For more information on Prefabricated Buildings, CLICK HERE or give us a call 888-783-3535.
You can also reach us on Twitter at @coastalsteel.
Also, don’t forget to subscribe, share and comment!
Follow us on: