Business
Cannabis companies seeking real estate face limited choices and premium prices
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.
Business
A Tipping Point for Cannabis: President Trump Champions CBD & Cannabis Science on Truth Social
When the President of the United States shares a video about the life changing potential of hemp derived CBD on his personal social media platform, it is more than news, it is a cultural shift.
For decades our government lied to us about cannabis. It demonized the plant, waged war on its users, and filled prisons while allowing pharmaceutical companies to flood the nation with addictive and deadly drugs. For over a century we have been fighting uphill, not just for legalization, but for truth, for science, and for the right to heal ourselves naturally.
Now in 2025, the most powerful political figure on Earth is using his own voice and platform to talk about the endocannabinoid system and the science backed benefits of CBD. That is monumental. It is validation for everyone who has fought, been arrested, been silenced, and been dismissed for telling this truth. The President’s video post is already being described as a pivotal moment in cannabis history, and President Trump CBD Cannabis Science Truth Social is trending across platforms as advocates celebrate the breakthrough.
The Science Behind the Endocannabinoid System
The video begins by introducing something most people, including many doctors, still know little about, the endocannabinoid system. Discovered in the 1990s, the ECS is a network of receptors and signaling molecules that works as the body’s master regulator, coordinating communication between major systems like the nervous, immune, cardiovascular, and digestive systems.
The roots of this discovery go back much further. CBD was first isolated in 1940 by American chemist Roger Adams, but it was Dr. Raphael Mechoulam, an Israeli organic chemist, who fully elucidated the chemical structure of CBD and identified its stereochemistry in the 1960s. His pioneering work not only opened the door to modern cannabinoid science but also earned him the title “Godfather of Cannabis Research.” It was this foundation that led to the identification of the endocannabinoid system itself decades later, revealing how cannabinoids interact with our physiology on a fundamental level.
The ECS is now widely recognized as a vital part of human biology, with extensive research supported by the National Institutes of Health. When functioning properly, the ECS acts like the conductor of an orchestra, ensuring every section plays in harmony. As we age, the system weakens. That imbalance is linked to inflammation, chronic pain, cognitive decline, sleep problems, and many other conditions associated with aging.
Mainstream medicine often addresses these issues with pharmaceutical band aids, dangerous and addictive drugs that treat symptoms rather than root causes. Lifestyle changes such as diet and exercise help, but they only partially support the ECS and do so slowly over time.
Hemp Derived CBD: A Game Changer for Aging
Here is where the science gets exciting. As the video explains, the ECS can be restored much more quickly with hemp derived CBD. Strengthening this system naturally helps the body regain balance, reducing pain, improving sleep, lowering stress, slowing disease progression, and even extending healthy lifespan.
It is not theoretical. One in five seniors is already using CBD to manage pain, arthritis, cancer symptoms, sleep disorders, Alzheimer’s, and more. Despite decades of research and acknowledgment from institutions like the National Institutes of Health, most physicians receive no training on the ECS. There are still no FDA standards for CBD products on the market. If that were the case for any other class of medicine, it would be considered malpractice.
The World Health Organization has confirmed CBD’s excellent safety profile and non addictive nature in its critical review report. The result is that millions of older Americans are suffering unnecessarily when a safe and natural solution exists.
Hemp derived CBD is a powerful first step in restoring balance to the endocannabinoid system, but it is only part of the picture. Research shows that full spectrum cannabis extracts, which include a broader range of cannabinoids and terpenes, can work even more effectively. Complete concentrated cannabis oil, containing the full spectrum of natural endocannabinoids, may deliver the most profound results for certain patients. Expanding access to these therapies will be essential if we want to unlock the full healing potential of this plant.
The Economic and Social Impact
The video cites a powerful figure. A PricewaterhouseCoopers analysis estimates that fully integrating cannabis into the healthcare system could save the United States nearly 64 billion dollars annually. These savings reflect reduced pharmaceutical dependency, fewer hospitalizations, improved chronic disease outcomes, and enhanced quality of life for aging Americans. You can read more about PwC’s research on healthcare innovation here.
It is a financial argument, but it is also a moral one. Why should our elders endure pain, anxiety, and cognitive decline when nature has given us tools to help them live longer, happier, and healthier lives?
A Call to Action: Finish What the Farm Bill Started
The message concludes by crediting the 2018 Farm Bill, championed by President Trump, for legalizing hemp and laying the groundwork for today’s CBD market. The Farm Bill was just the first step.
Now the call is for bold next moves.
- Educate doctors about the endocannabinoid system
- Include CBD under Medicare coverage
- Provide clear federal standards for CBD quality and dosing
These steps would constitute the most significant senior health reform in modern history, one that would transform aging and cement a powerful legacy for any administration that makes it happen.
What This Means for Future Cannabis Medicine
For those of us who have been in the cannabis community for decades, this is not just another news story. It is a signal that our movement is winning. A conversation that was once criminalized and censored is now being amplified by the President of the United States on his own platform.
It means the science is undeniable. It means the truth can no longer be buried. It means the wall of prohibition is cracking, not just legally, but culturally, scientifically, and politically.
It also means that everything we have been fighting for at 420 Magazine since 1993, education, access, healing, and justice, is finally moving full steam ahead. The President Trump CBD Cannabis Science Truth Social moment is proof that science and policy are finally converging.
New Mexico regulators fined a cannabis operator nearly $300,000 and revoked its license after the company allegedly created fake reports in the state’s traceability software.
The New Mexico Cannabis Control Division (CCD) accused marijuana manufacturer and retailer Golden Roots of 11 violations, according to Albuquerque Business First.
Golden Roots operates the The Cannabis Revolution Dispensary.
The majority of the violations are related to the Albuquerque company’s improper use of BioTrack, which has been New Mexico’s track-and-trace vendor since 2015.
The CCD alleges Golden Roots reported marijuana production only two months after it had received its vertically integrated license, according to Albuquerque Business First.
Because cannabis takes longer than two months to be cultivated, the CCD was suspicious of the report.
After inspecting the company’s premises, the CCD alleged Golden Roots reported cultivation, transportation and sales in BioTrack but wasn’t able to provide officers who inspected the site evidence that the operator was cultivating cannabis.
In April, the CCD revoked Golden Roots’ license and issued a $10,000 fine, according to the news outlet.
The company requested a hearing, which the regulator scheduled for Sept. 1.
At the hearing, the CCD testified that the company’s dried-cannabis weights in BioTrack were suspicious because they didn’t seem to accurately reflect how much weight marijuana loses as it dries.
Company employees also poorly accounted for why they were making adjustments in the system of up to 24 pounds of cannabis, making comments such as “bad” or “mistake” in the software, Albuquerque Business First reported.
Golden Roots was fined $298,972.05 – the amount regulators allege the company made selling products that weren’t properly accounted for in BioTrack.
The CCD has been cracking down on cannabis operators accused of selling products procured from out-of-state or not grown legally:
- Regulators alleged in August that Albuquerque dispensary Sawmill Sweet Leaf sold out-of-state products and didn’t have a license for extraction.
- Paradise Exotics Distro lost its license in July after regulators alleged the company sold products made in California.
Golden Roots was the first alleged rulebreaker in New Mexico to be asked to pay a large fine.
Source: https://mjbizdaily.com/new-mexico-cannabis-operator-fined-loses-license-for-alleged-biotrack-fraud/
Four marijuana companies, including a multistate operator, have filed a lawsuit against U.S. Attorney General Merrick Garland in which they allege the federal MJ prohibition under the Controlled Substances Act is no longer constitutional.
According to the complaint, filed Thursday in U.S. District Court in Massachusetts, retailer Canna Provisions, Treevit delivery service CEO Gyasi Sellers, cultivator Wiseacre Farm and MSO Verano Holdings Corp. are all harmed by “the federal government’s unconstitutional ban on cultivating, manufacturing, distributing, or possessing intrastate marijuana.”
Verano is headquartered in Chicago but has operations in Massachusetts; the other three operators are based in Massachusetts.
The lawsuit seeks a ruling that the “Controlled Substances Act is unconstitutional as applied to the intrastate cultivation, manufacture, possession, and distribution of marijuana pursuant to state law.”
The companies want the case to go before the U.S. Supreme Court.
They hired prominent law firm Boies Schiller Flexner to represent them.
The New York-based firm’s principal is David Boies, whose former clients include Microsoft, former presidential candidate Al Gore and Elizabeth Holmes’ disgraced startup Theranos.
Similar challenges to the federal Controlled Substances Act (CSA) have failed.
One such challenge led to a landmark Supreme Court decision in 2005.
In Gonzalez vs. Raich, the highest court in the United States ruled in a 6-3 decision that the commerce clause of the U.S. Constitution gave Congress the power to outlaw marijuana federally, even though state laws allow the cultivation and sale of cannabis.
In the 18 years since that ruling, 23 states and the District of Columbia have legalized adult-use marijuana and the federal government has allowed a multibillion-dollar cannabis industry to thrive.
Since both Congress and the U.S. Department of Justice, currently headed by Garland, have declined to intervene in state-licensed marijuana markets, the key facts that led to the Supreme Court’s 2005 ruling “no longer apply,” Boies said in a statement Thursday.
“The Supreme Court has since made clear that the federal government lacks the authority to regulate purely intrastate commerce,” Boies said.
“Moreover, the facts on which those precedents are based are no longer true.”
Verano President Darren Weiss said in a statement the company is “prepared to bring this case all the way to the Supreme Court in order to align federal law with how Congress has acted for years.”
While the Biden administration’s push to reschedule marijuana would help solve marijuana operators’ federal tax woes, neither rescheduling nor modest Congressional reforms such as the SAFER Banking Act “solve the fundamental issue,” Weiss added.
“The application of the CSA to lawful state-run cannabis business is an unconstitutional overreach on state sovereignty that has led to decades of harm, failed businesses, lost jobs, and unsafe working conditions.”
-
Business2 years agoPot Odor Does Not Justify Probable Cause for Vehicle Searches, Minnesota Court Affirms
-
Business2 years agoNew Mexico cannabis operator fined, loses license for alleged BioTrack fraud
-
Business2 years agoAlabama to make another attempt Dec. 1 to award medical cannabis licenses
-
Business2 years agoWashington State Pays Out $9.4 Million in Refunds Relating to Drug Convictions
-
Business2 years agoMarijuana companies suing US attorney general in federal prohibition challenge
-
Business2 years agoLegal Marijuana Handed A Nothing Burger From NY State
-
Business2 years agoCan Cannabis Help Seasonal Depression
-
Blogs2 years agoCannabis Art Is Flourishing On Etsy