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Cannabis Net Lease Offers Potentially High Risk to Landlords

A solid and ultimately profitable deal with tenants dealing with marijuana products is certainly possible, but they require significant due diligence, thought, and consideration.

The moment states began making cannabis product sales legal in varying degrees, the dollar signs popped up in the eyes of investors, financiers, and also CRE property owners. High demand products with strong pricing and limited access seemed like a dream.

Except, legal and regulatory snafus and limitations on the businesses meant a lot less profitability. Landlords who might appreciate premium pricing, along with offloading tax, maintenance, and other expenses need to put some significant effort into potential tenant relationships to stay out of trouble.

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Erik Sherman

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