Key Considerations Before Leasing To Cannabis Businesses

By Joshua Schneiderman and Katherine Annuschat (November 13, 2017, 2:39 PM EST) -- Beginning Jan. 1, 2018, pursuant to Proposition 64, the Adult Use of Marijuana Act, licensed businesses will be authorized under California law to cultivate, manufacture, distribute and sell cannabis. These businesses are currently seeking commercial properties in which to set up shop, and entrepreneurial landlords are jumping at the opportunity to lease their space to cannabis business tenants. After all, cannabis businesses are known for paying premium rental rates. While this presents unique business opportunities to landlords, conducting business in the marijuana industry also comes with risks. Before entering into any lease, landlords should be aware of common pitfalls in cannabis...

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