Storefronts once shuttered by the recession are now re-opening and helping our economy with post-recession growth.

But it isn’t coffee shops or pizza restaurants. These new businesses are small retailers answering the call for the fast-growing electronic cigarette market. Affectionately known as “vape shops,” due to the e-cig’s vaporized nicotine dispense system, “vape products” offer a “great business with excellent margins,” says Sam Bahhur, owner of the U Smoke Shop in Miami. Last June, Bahhur expanded his 10-employee business to a second location in Coral Gables that operates solely on e-cig merchandise.

While Bahhur can only markup traditional tobacco cigarette sales by 10 to 20 percent, he turns far greater numbers of 200 to 400 percent on e-cig dispensers, nicotine cartridges, and accessories. Bahhur recorded annual revenues of roughly $1.3 million from the two stores and is expecting even greater numbers for the 2014 fiscal year. He says vaping, “is cost effective for both us and our customers.”

In October of 2013, the U.S. was home to roughly 3,500 vape shops around the country, according to Aaron LoCascio, CEO of Vape World, a distributor in Boca Raton, Florida. The manufacturing and sales of e-cigs are not taxed in most states presently, allowing for higher profits when compared to tobacco products. In 2010, the federal court overturned a ban on sales and manufacturing placed by the U.S. Food and Drug Administration back in 2009. Regulations were purposed back in April such as banning the sales of e-cigs to minors, requiring health warning labels, as well as new product approval. Only two states, Minnesota and North Carolina, have approved the taxation of e-cigs. States considering taxation include, Michigan, Ohio, and New York.

Most vape shops are previous tobacco shop owners who embarked on independent ventures. Other owners include small groups of investors. James Ting, a self-employed marketing consultant, and his five business partners, are a prime example of such investment groups. Ting and his investment team came up with $90,000 and opened Ja’Vape in October of 2013. “Our neighboring town already had 10 or so vape shops” Ting says. “That’s how crazy the market is—the demand is still high.” Ting and his investment team refitted what was once a 1,500-square-foot video store that had gone out of business. No special licenses or permits were required for the store, and the city had no apparent concerns about their business.