From Concept to Construction: Navigating Budgets in Cannabis Dispensary Design
Designing and building out a cannabis dispensary is an exciting opportunity to turn a unique vision into a thriving business. From the original idea, through licensing, and into operations, each step offers a chance for creativity and strategic planning. While it can be a complex, expensive, and lengthy process, these challenges are part of the journey and can be handled with careful planning and a clear roadmap.
By fully understanding project expectations and assembling a knowledgeable team early, operators can effectively manage their budget and time – ensuring their dispensary’s success from concept to construction.
Setting a Budget and Sticking to It
When planning a dispensary, operators are encouraged to craft a budget that identifies projected costs, aiming to spend around $100-250 per square foot of the total leased area. This range includes everything from construction and professional services to furniture, fixtures, and finishes, accounting for both the front and back of house in the financial planning.
“You should splurge on your customer facing elements when you can,” said Virginia Maggiore, Principal of RDC. “You can keep your back of house very simple and utilitarian, saving your budget for an investment in your customer experience.”
The cost of converting an existing structure into a dispensary is as diverse as the spaces themselves, dependent upon the condition and usability of the space, including structural elements, security features, and necessary equipment. Properties already equipped with many of these elements often come at a more modest price point, while those requiring substantial upgrades may require a more generous investment.
“Site selection plays a vital role in determining the overall cost of the dispensary design and build out,” said Virginia Maggiore. “Choosing a space with existing turnkey elements can yield huge cost savings compared to the expense of converting a space that isn’t retail ready.”
Unique Costs in Cannabis Dispensary Design
While budgeting for a dispensary shares many similarities with traditional retail, there are distinct additional costs associated with the security and compliance requirements of the cannabis industry. Not only are these elements often mandated by regulations, but they are also crucial in preventing crime and cannabis diversion.
“Investing in security is an investment in the long-term success of your dispensary,” said Virginia Maggiore. “And by partnering with experienced designers, you can keep costs in check while still getting secure, compliant, and cost-effective solutions through their national vendor networks.”
Decision-Making and Cost Control
Several factors influence the cost of setting up a dispensary, including the design choices for the space. Unique and dynamic design elements like custom furniture, artwork, and lighting can substantially increase the cost of a project, while using stock elements can result in a lower price tag. Early decision-making can also aid in curbing costs, as delays or changes later on can inflate expenses significantly.
“You’ll want to make your decisions early rather than during the build out phase,” said Virginia Maggiore. “Making too many changes during construction can be exponentially more expensive because you’ll have longer lead times for new materials, added shipping fees, and unexpected overtime labor – driving up the overall project costs.”
If costs exceed budget expectations, operators have an opportunity to pause and evaluate. Engaging in dialogue with vendors or general contractors to explore potential solutions can be instrumental in realigning expenses with the budget. Though this pause may slightly extend the timeline, it is a proactive step towards preventing overspending and ensuring financial goals are achieved. Sometimes, investing this extra time upfront can make all the difference in maintaining financial stability and staying on track with the budget.
“Don’t be afraid to pause for a week or two to reassess and realign with your budget,” said Virginia Maggiore. “During these pauses, you need a strong decision-making team to evaluate and determine the best course of action moving forward.”
How Can RDC Help?
RDC’s team of architects and designers have worked extensively with retailers in the cannabis industry. Our team works with dispensary owners to design and buildout optimal user experiences and aesthetics!
