How to Vet a Cannabis Tenant

Jeff McGuire is the founder and co-CEO of MJ Real Estate Investors.

LOS ANGELES—The cannabis real estate market is gaining momentum, and fast becoming its own asset class. While there are plenty of opportunities in this market, but how do landlords appropriately vet a tenant in this very new market that remains federally illegal? MJ Real Estate Investors is a new Beverly Hills-based investment firm is focusing on cannabis real estate and focuses on vertically integrated companies as tenants because they think that they have more market stability.

“There are cultivators and companies that focus on cultivation, and then there are companies that do testing and there are other companies that focus on sales,” Jeff McGuire, co-founder and president of MJ Real Estate Investors, tells GlobeSt.com. “As a company, we have decided to focus strategically on the vertically integrated companies with dominant market positions because those companies are able to cultivate their own plants and sell them in their own stores.”