Cannabis Real Estate

How to find a property for your cannabis business:

Navigating the world of real estate as a cannabis industry business can be a headache, to say the least. When you are dealing with a product that the federal government still deems illegal, it can be difficult to find a landlord who is willing to rent to you. This is why many cannabis entrepreneurs and investors opt to own the property that they plan to utilize, although this can also be difficult if you need to finance your purchase through a bank. Here are a few quick tips to keep in mind when looking for the perfect place to set up shop.

Renting a property

An advantage of renting a property is that you will not be tied to one specific location, should you need to adapt to change that might affect where you are physically located. Most state-regulated cannabis markets see frequent regulatory changes, and sometimes these could affect where you are allowed to operate, or what types of buildings you can occupy.

Here are some things to keep in mind when renting a property for your cannabis business:

• Have a lawyer review your lease before signing it.
• Make sure your landlord understands your business model prior to becoming their tenant.
• Have a back-up plan in mind for if your landlord decides not to renew your lease (or increases your rent by an unreasonable amount).

Buying a property

There are a number of advantages to owning the property on which your business will operate. From not needing to worry about whether your landlord will renew your lease or raise rent, to increased privacy, to having an asset on the books instead of a liability, owning a property generally alleviates many of the possible concerns that come with being a tenant.

That said, owning your commercial property also comes with a whole lot of additional responsibility and raises new potential problems. Here are some questions to ask yourself before choosing this route:

• Will you have room to expand as the business grows?
• Will you be able to afford the necessary renovations / upgrades you’ll need to pay for to make the facility workable?
• Will it be possible to sell the property quickly if you decide to relocate in the future?

Ultimately, unless you have extensive commercial real estate experience personally, working with a cannabis-focused specialist or consultant is often the best way to navigate this process. Ganjapreneur’s Business Index is intended to help cannabis entrepreneurs find service providers who are ready and willing to help them — scroll up to browse qualified providers!