Marijuana is now legal in 26 states and Washington, DC, but it’s incredibly difficult to lock down real estate to start a cannabis business. With marijuana still being illegal at the federal level, the negative stigma surrounding the industry and its expensive overhead, businesses looking to cultivate, store and sell cannabis are having a hard time expanding their commercial footprint. The following professionals elaborated on some of the challenges the industry is experiencing grabbing real estate.
“There is no question, the cannabis industry is poised for growth, but finding an approved property or building is no easy task. Unlike ‘mature’ markets such as Colorado, where there are 900-plus licensed marijuana businesses, the newer legalized states have much tighter real estate zoning restrictions, which results in a lack of inventory.
Part of the problem is that no playbook exists for local municipalities to follow. What we are seeing is limited inventory due to strict zoning requirements combined with landlords unwilling to sell or lease properties to marijuana businesses. Even once a property is secured, building decisions (i.e. type of security systems, sprinkler systems, etc.) are often made on a case-by-case basis at the local government levels resulting in additional costs and delays. [Read more at Forbes]