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Cannabis companies seeking real estate face limited choices and premium prices

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Experienced cannabis entrepreneurs know that ancillary companies such as construction and banking providers often charge marijuana businesses more than their non-plant-touching counterparts—the so-called “green tax.”

The green tax applies to real estate, too. Marijuana businesses regularly pay premiums for properties, whether they are retail storefronts, land or warehouses for cultivation and manufacturing.

“Yes, there is a cannabis premium,” said Berekk Blackwell, the chief operating officer at Scottsdale, Arizona-based Zoned Properties, a cannabis-focused commercial real estate leasing and investment company.

That premium, Blackwell and other cannabis industry observers say, has a few main drivers that most other industries don’t have to contend with—at least not to the same degree as marijuana businesses.

These drivers include:

  • Restrictive land-use and zoning regulations.
  • Holding fees that cannabis business owners pay landlords to keep property vacant until they receive business licenses as well as other contingency fees.
  • Landlords and property sellers who perceive cannabis businesses as cash cows that can afford to pay premiums—especially because of limited availability.
  • Landlords who perceive that renting to cannabis businesses puts their own land deeds, mortgages and bank notes at risk.

“The reasons are a little bit of everything. It really comes down to supply and demand,” said Chris Cox, principal with BeGreenLegal, a cannabis consulting firm in Sacramento, California. “The starting point is, if you’ve ever tried to get a land-use permit for cannabis, you’ll know that it’s pretty difficult compared to just locating any business. There are many requirements starting at the state level.”

The good news is that in more mature markets, real estate prices for cannabis businesses are softening, and there are strategies to minimize premiums in newer, still-evolving markets.

Land-use restrictions raise real estate prices

Among the most common inflators of cannabis real estate prices are zoning regulations and land-use restrictions.

“The first driver is restrictive zoning,” Blackwell said. “Municipalities will typically set up one or two commercial or industrial zones, but they’ll also layer in additional restrictions around setbacks from sensitive uses such as churches, schools, parks. When you layer in those two factors, the supply of available, compliant real estate gets pretty small pretty fast.

“When you have a high-demand area—maybe a metro area or just a desirable place to do business—but there’s only 12 compliant pieces of real estate, and you have many groups chasing those, it’s going to drive the price up.”

Ryan George, CEO of Sacramento-based 420 Property, added: “It’s the principle of supply and demand.”

Fees, financing and fear

A second driver is contingencies related to holding periods, Blackwell said. In many states, regulators require cannabis business license applicants to already have property secured at the time of application. Even when real estate isn’t a requirement, it can make sense to secure property before securing a license if that property or the real estate terms seem like winners.

But if it will take six to nine months for a marijuana company to secure a business license, the landlord will likely require some incentive to take their property off the market and let it sit empty until the license comes through.

Financing, insurance and similar services also are drivers of inflated real estate pricing.

“It’s expensive to hold property for cannabis use. You can’t have just a traditional commercial real estate loan on a cannabis property,” Blackwell said. “You need specific financing that is underwritten for cannabis use, which means your interest rates are going to be higher than market interest rates. Also, insurance costs are higher for cannabis properties.”

Fear of losing a mortgage or property deed can also drive up real estate prices. In other words, a landlord might feel they are taking a risk by allowing a cannabis business to operate on their property, George said.

“The risk is that the bank will call to see what their loan’s doing,” George said. Property owners fear that banks will find out they are leasing to a cannabis business and accuse them of violating the terms of their loan and either evict the tenant or exercise clauses triggering early loan repayments, typically 30-90 days.

“And they usually have to replace or pay off that loan with a much more expensive, hard-money loan or private financing of some sort,” George said.

While factors such as fees and zoning drive up real estate prices for cannabis businesses, so can the perception that marijuana companies have more money to pay premiums.

“Are there areas of the country where property owners take advantage of that story and make up even more inflated premiums? Yes,” Blackwell said. “Landlords have this initial reaction of, ‘Maybe I can bump up my lease rate or ask for something else.’”

Importance of market age

Regional variations can be a factor in real estate prices, specifically the difference between new and mature markets—and variations between urban and rural areas.

When a state legalizes marijuana and creates a new market, prices for real estate to run a cannabis business will go up because of the buzz surrounding the new market—and often because there are a limited number of licenses and properties available, explained Cox of BeGreenLegal.

“The more that it becomes commonplace, the more the price is going to go down,” Cox said. “In California, we are now seeing a bit of a rebalancing, because over the last several years, prices have been typically higher. Now they are falling, because cannabis businesses have either gone out of business or they have never even gotten to the finish line because … they run out of money, run out of interest, whatever the case may be.”

George of 420 Property agrees: “California has had some time to mature, and a lot of businesses are failing because of their cost overruns. And a lot of the cost overruns have to do with legacy leases or legacy real estate purchases that aren’t sustainable. So you’re going to start seeing the premiums declining and stabilizing in mature markets—whereas, in newer markets, there’s still a premium to be asked.”

Cox noted that when states legalize a new marijuana market, cannabis entrepreneurs swarm the area searching for real estate.

“There’s going to be a fever pitch. Everybody’s going to be jumping in,” Cox said. “The better approach is to be thoughtful and methodical: Think about what your end goal is, and then go after what, analytically, is the best possible option. … It’s got to be (based) on analytics; you can’t just make assumptions.”

Cox added that waiting until the frenzy has died down can be a solid choice for business owners who don’t have large reserves of capital to spend on real estate.

“We’ve seen what happened in California, Colorado and Washington (state),” Cox said. “The people that first get into the industry are not necessarily the ones that make the money. It’s not so much about who gets first to market. It’s who gets best to market.”

Population and sector

Urban and rural areas come with their own advantages and disadvantages. For example, cultivators might want to consider locating their operations in rural areas to take less of a hit on real estate premiums.

“If you want to be a cultivator, I would not recommend that you do it in an urban area,” Cox said, adding that cost of permits, licenses, construction, land value and taxes are all going to be more expensive. “You’re growing a commodity that can be transported hundreds of miles without any problem. So, why?”

Marijuana retail operators, meanwhile, have different considerations.

“People are going to pay a particularly high premium to be able to open up, for example, a cannabis store where they have access to a large density of potential consumers … (who) have disposable income for cannabis goods. That’s going to be a very big factor,” George said, adding that the high costs are most evident in new marijuana markets.

Warehouses, too, are especially expensive now, thanks to the growing popularity of online shopping.

“The warehouse market has been a shining star in the commercial side of things. Warehouses have become especially popular because of the growth of online commerce, so cannabis cultivation owners are competing against other business owners who need warehouses to store online goods,” said Matt Christopherson, senior research analyst with the Chicago-headquartered National Association of Realtors.


Avoiding the ‘Green Tax’

There are a few ways to combat the cannabis premium, according to marijuana real estate experts.

One strategy is opening the search to include properties not considered “A-grade,” said Ryan George, CEO of California-based 420 Property. The owners of real estate that needs improvements, for example, might be open to negotiating a reduced price.

“If you are an operator that is well intended, and you have funding behind you, make it seem as if you’re in partnership with the landlord,” George advised. For example, tell the landlord you will invest significant capital into building improvements, but in return, you hope to have a long-term lease at a sustainable price, George said.

Another strategy: Seek out properties that are not yet listed on the market, according to Berekk Blackwell, chief operating officer at Zoned Properties in Arizona.

If a property is listed for sale or lease, the owner likely is looking for a transaction to happen soon and already has a price in mind.

Instead, try finding an “off-market” opportunity in a so-called “green zone,” or area allowed to host cannabis businesses. Visit stores, Blackwell suggested, and talk with business owners about whether they are considering moving or closing their doors in the near future.

“If you start that conversation with a property owner or a tenant … they might be wanting to move anyway. And if you’re trying to negotiate with a property owner … it’s an easier ask,” Blackwell said.

Of course, there are never any guarantees.

“There’s still going to be landlords out there and property owners with grandiose ideas about what their land and buildings are worth,” George said.

Source: https://mjbizdaily.com/marijuana-companies-seeking-real-estate-face-limited-choices-and-premium-prices/

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Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light

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Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.

India’s Indigenous LEO Satellite Vision

Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.

The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.

According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.

The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.

Regulatory Process Moves Forward

Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.

The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.

Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.

Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.

Broadband, Mobile Connectivity, and Strategic Applications

Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.

The company also intends to establish 20 to 22 ground stations across India to support network operations.

Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.

Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.

Major Step for India’s Space and Telecom Sectors

Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.

The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.

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Alleged Crores Pharma Scam Mastermind Arrested from Surat

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After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.

Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.

Fake Business Deals and Dishonoured Cheques Used in Fraud

Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.

In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”

Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.

Multiple Identities and Repeated Fraud Pattern

Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.

Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.

Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.

Multi-State Surveillance Leads to Arrest in Surat

A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.

Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.

Growing Threat of Corporate Identity Fraud

The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.

Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.

Experts Urge Stronger Due Diligence in High-Value Transactions

Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.

Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.

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EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

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