Assessing the Risk of Commercial Cannabis and Real Estate

2018 brought about the legalization of recreational cannabis to California, providing a wealth of opportunities. Many of these opportunities, however, translate to risk. This new industry, in its wild west phase, has created a wave of disruption and is even effecting today’s commercial real estate landscape. Join us as we discuss title, debt, appraisals,leasing and how the cannabis industry could potentially influence a purchase or sale transaction.

There will undoubtedly be a real estate boom fueled by the cannabis industry, and transaction services will either be built around the industry, or existing companies will need to find a way to meet the demand. Properties have already hit the CA market and there are very limited services available for those trying to find their own point of entry into the cannabis industry.

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1 reply
  1. Dan Khatchaturian
    Dan Khatchaturian says:

    An astute investor can achieve double digit returns leasing industrial space to a cannabis use. However, given the conflict between federal and state laws, it is imperative to incorporate an escape clause into the lease to mitigate damages and prevent the Feds from seizing the property.

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