Contributor: Stephen J. Morgan
We all want a piece of cannabis real estate nowadays. I mean, who wouldn’t? These marijuana properties are, essentially, a gold mine. They’re rare, exclusive, and super lucrative. But, in addition to always keeping an eye out for “420 properties,” there are few tricks of the trade that should make the process all the more smoother.
So, whether you’re looking to rent commercial space, or searching for a marijuana farm for sale, you’ll want to educate yourself to the best of your ability on the matter, before getting too deep into things.
Lucky for you, the buying and selling of cannabis businesses and real estate isn’t much different than any other sort of location purchase or sale. There are only a few stipulations that separate it from the usual procedure.
The first of which is the amount of locations available. There just won’t be as much to choose from, when compared to the typical business. This is due to the varying regulations that require businesses of this nature to stay a certain amount of feet away from other establishments, such as: schools, churches, liquor stores, day care centers, and even other dispensaries.
Armed with that knowledge, you’ll know to use an ever-critical eye, and thoroughly inspect the surrounding neighborhood before signing any sort of agreement. Which, to be fair, should go without any saying, but it feels necessary to repeat at this juncture.
The first thing you’ll want to do is find a vetted, trusted real estate listing website, that specializes in only cannabis and hemp businesses. You can’t just hop on RedFin and except to sort out the search field by “Dispensaries” – that simply will not happen, nor should it. To be honest, you should want to implement the services of a company that knows the marijuana industry inside and out. The more expertise they can lend you on the subject, the better off you’ll be, no doubt about it.
For instance, you’ll hear these experts refer to cannabis-related real estate as “Green Zones,” for obvious reasons.
The first thing you’ll want to do in the search for your own specific “Green Zone” is to look for certain municipalities in your area that have opted into the MMFLA, otherwise known as The Medical Marijuana Facilities Licensing Act.
Now, in many states, like Michigan, for example, various cities and townships are legally allowed to prohibit legal dispensaries from opening up in their neighborhood. Their city council can vehemently oppose such a business venture, even if their citizens and residents are majoritively in favor of it.
In other words, just because a town is located in a state, wherein medical (or recreational) cannabis is legalized, that doesn’t mean they have to allow it within their borders. So, do your due diligence on your prospective town before building up any extensive building plans.
Another aspect that you will need to consider heavily throughout the course of this process is educating yourself on the intricate nature surrounding certain zoning restrictions. Which is what I vaguely alluded to above, by mentioning that cannabis establishments of this kind (aka a “Green Zones”) have to be a certain amount of feet away from a list of specific types of buildings and locations.
Which, when you really think about it, makes sense. Though, it still seems a bit discriminatory towards cannabis businesses. I mean, liquor stores are seemingly on every corner, but the stipulations and regulations cannabis companies have to adhere to are very, very strict. Though, many experts speculate that those sorts of tight restrictions will loosen up with time, and I have an inkling they’re right about that prediction.
Once you’ve gone through all of that rigamarole, you should be left with a listing of various “Green Zoned” properties that fit all the specific, government-required criteria. Now, all that’s left for you to do, is take into consideration what it is you are looking for in a cannabis establishment, because there are a litany of combinations – and not all of them equal success.
Take the standard “Strip Mall” dispensary, for instance.
Sometimes, it’s nice to know that you can grab a bite, or get your nails done, before (or after) grabbing some much-needed bud in places like this. But, with strip malls, they don’t always offer up the most parking, as their lots are typically shorter and far more stout than a standard, stand-alone dispensary.
Also, having to share signage space with the laundry list of other establishments in the strip mall could prove to be quite a pain. And that’s one element that could drastically hurt your business when it’s all said and done. But, at the end of the day, these locations typically cost a lot less, and provide a sense of security, as far as landlords and whatnot are concerned.
But, let’s say you spring for a stand-alone establishment – great! How’s the parking situation? If you are a solo business, in the middle of a crowded street, with only minimal spots available, you may see a dip in business, as even getting to your location can be a hassle for potential customers.
However, you have full control over how large you want your signage to be in this scenario, in addition to the overall color scheme of your building, which can help it stand out amongst its peers in a major way.
But, that said, these places can cost a pretty penny. I mean, they are typically sporting far more square footage, after all. However, seeing as parking may become an issue, owners may opt for a location that comes with its very own lot.
Even if the dedicated lot is on the smaller side of things, customers will leave their residence, hopeful that they’ll be able to land one of those customer-specific spots, especially if they plan their visit around the typical “rush hour” times of the day. In turn, they will frequent your establishment more often than not going forward, because they won’t be preemptively defeated by the battle for parking that would’ve otherwise occurred.
Obviously, there’s a ton of other things and aspects to consider before finalizing any sort of deal with one of these “Green Zoned” properties, but if everything feels right, then by all means, follow your heart, and hit the ground running.
It’s all about knowledge when it comes to the cannabis industry. So, the more time you can dedicate to learning as much as you can about this ever-changing realm of business, the more successful you’ll be. I guarantee it.
