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
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
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.
AI & Technology
Amazon Faces Potential Criminal Trial in Italy Over €1.2 Billion Tax Evasion Allegations
Milan: U.S. tech giant Amazon is facing the prospect of a major legal showdown in Italy, after prosecutors in Milan formally requested a court to move forward with criminal proceedings over alleged tax evasion totaling approximately ₹12,500 crore (€1.2 billion).
The case targets Amazon’s European division along with four senior executives, marking one of the most significant tax-related investigations involving a global e-commerce platform in Europe.
Trial Push Despite Multi-Million Euro Settlement
The move comes even after Amazon reached a financial settlement with Italian tax authorities in December, agreeing to pay around ₹5,500 crore (€527 million), including interest, to resolve part of the dispute.
Typically, such settlements lead to the closure of criminal investigations. However, Milan prosecutors have opted to proceed, signaling a tougher stance on alleged corporate tax violations.
A preliminary hearing is expected in the coming months, where a judge will decide whether to formally indict the company and its executives or dismiss the case.
Allegations of VAT Evasion Through Marketplace Sellers
At the center of the investigation are claims that Amazon’s platform enabled non-European Union sellers to avoid paying value-added tax (VAT) on goods sold to Italian consumers between 2019 and 2021.
Prosecutors allege that the company’s marketplace structure allowed thousands of foreign vendors—many reportedly based in China—to operate without fully disclosing their identities or tax obligations. This, authorities argue, led to substantial VAT losses for the Italian government.
Under Italian law, online platforms facilitating sales can be held partially liable if third-party sellers fail to comply with tax requirements, a key point in the prosecution’s case.
Italian Government Named as Affected Party
In their filing, prosecutors identified Italy’s Economy Ministry as the injured party, citing significant financial damage resulting from the alleged tax evasion.
Legal experts say the outcome of the case could have wide-ranging implications across the European Union, where VAT systems are harmonized and similar compliance rules apply to digital marketplaces.
Multiple Investigations Add to Pressure
The VAT probe is just one of several legal challenges facing Amazon in Italy. The European Public Prosecutor’s Office is reportedly examining additional tax-related issues covering more recent years.
Meanwhile, Milan authorities are pursuing separate investigations into alleged customs fraud linked to imports from China and whether Amazon maintained an undeclared “permanent establishment” in Italy—potentially exposing it to higher tax liabilities.
In a separate regulatory action, Italy’s data protection authority recently ordered an Amazon unit to stop using personal data from over 1,800 employees at a warehouse near Rome.
Amazon Denies Allegations
Amazon has consistently denied wrongdoing and indicated it will strongly contest the allegations in court if the case proceeds. The company has also warned that prolonged legal uncertainty could impact investor confidence and Italy’s appeal as a destination for international business.
Broader Impact on Europe’s Digital Economy
If the case moves to trial, it could become a landmark moment for the regulation of global e-commerce platforms in Europe. Governments across the region are increasingly scrutinizing how digital marketplaces handle tax compliance, especially in cross-border transactions.
With online retail continuing to expand, regulators are under mounting pressure to ensure that multinational platforms and third-party sellers adhere to the same tax rules as traditional businesses.
Aviation
IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?
Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.
Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.
Root Cause: IndiGo’s Market Monopoly
The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.
This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.
Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.
Government Intervention and Regulatory Weakness
The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.
Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.
The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.
If Telecom Giants Fail: A National Paralysis
The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?
If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.
In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.
E-commerce Monopoly: Another Fragile Ecosystem
The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.
Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.
A Wake-Up Call for Regulators
The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.
As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.
Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.
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