Company: IIPR
Filing Date: 2025-02-26
Form Type: 424B5
Source: 0001104659-25-017454
Chunk: 46

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-26
Form: 424B5
Chunk 46
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 the Exchange Act and 
 a successor depositary is not appointed by us within 90 days; or                                                                    |

| · | we decide to discontinue use of the system of book-entry transfer through DTC (or any successor depositary). |

| S-29 |

<div align='center'>PLAN OF DISTRIBUTION</div>

We previously entered
into the equity distribution agreements with each of BTIG, LLC, Jefferies LLC, Piper Sandler & Co. and Roth Capital Partners,
LLC (or certain of their respective affiliates), acting in their capacities as Sales Agents or as Forward Sellers and, in certain cases,
as Forward Purchasers, relating to the offer and sale from time to time of offered shares having an aggregate offering price of up to
$500,000,000. We have sold offered shares having an aggregate offering price of approximately $10.1 million as of the date of this prospectus
supplement, pursuant to a Registration Statement on Form S-3 filed on January 24, 2022 (Registration No. 333-262320) and
a prospectus supplement, dated May 24, 2024. Accordingly, as of the date of this prospectus supplement, offered shares having an
aggregate offering price of up to approximately $489.9 million remain available for offer and sale pursuant to this prospectus supplement.

Sales of the offered
shares, if any, under this prospectus supplement and the accompanying prospectus may be made by any method permitted by law deemed to
be an “at-the-market” offering as defined in Rule 415 under the Securities Act, including, without limitation, sales
made directly on the NYSE, on any other existing trading market for our common stock, in block trades or to or through a market maker
or through an electronic communications network.

The equity distribution
agreements provide that, in addition to the issuance and sale of offered shares by us through the Sales Agents, we may enter into forward
sale agreements under separate master forward sale agreements and related supplemental confirmations between us and a Forward Purchaser
for shares of our common stock. In connection with each particular forward sale agreement, the relevant Forward Purchaser (or an affiliate
thereof) will borrow from third parties and, through the relevant Forward Seller, sell a number of shares of our common stock equal to
the number of shares of our common stock underlying the particular forward sale agreement.

We will report at least
quarterly the number of offered shares sold through the Sales Agents and/or