Cannabis Businesses & Leasing Real Property
By Jana Weltzin in Marijuana Venture Magazine
Given the conflict between state and federal law, marijuana-related business owners face a unique challenge obtaining real property leaseholds. Cannabis-friendly landlords are in a predicament.
They are torn between their motivation to do business with the cannabis industry and the risk of civil forfeiture, if the Feds were to enforce the Controlled Substances Act.
This balancing act leads to one of two conclusions by a landlord. They either determine the risk is too great and opt to not engage in any business with cannabis entrepreneurs, or they calculate the risk into the cost per square foot of space and charge a substantial premium.
The Cole memorandums, particularly the one released in August 2013, has given some comfort to land owners and has increased their willingness to lease to businesses in the cannabis space. READ MORE