Case Results:
You’ll need property to start your legal marijuana business. But California has strict laws governing commercial real estate, and when cannabis is the product, the rules are even more complex. In addition to state regulations, local governments have their own rules regarding how and where businesses in this industry can operate.
All the issues and regulations must be carefully navigated when looking to lease or buy property. A wrong step could shut your cannabis business down before you have even had a chance to turn a profit.
Consulting with a cannabis real estate lawyer is critical as you seek to secure a site for your marijuana business. A San Diego attorney with in-depth knowledge of zoning laws, licensing requirements, and the full spectrum of concerns that come into play when identifying land for a cannabis operation can help you start out in the strongest position possible.
Call (858) 756-7107 today to arrange a consultation with cannabis commercial real estate attorney Jessica McElfresh.
State and local rules regarding cannabis operations can be conflicting. Whether you are looking for real estate for cultivating, manufacturing, distributing, testing, or selling recreational or medical marijuana, our firm can help you understand how to find a property that is right for your business and how to ensure you are compliant with these regulations.
Whatever you need to know about leasing or purchasing real estate for your marijuana business, our cannabis real estate attorney can answer your questions.
There are many considerations in selecting a location for a cannabis business in California. We can provide well-informed guidance throughout the real estate identification process.
Properties for cannabis businesses must be zoned for the particular use: such as cultivating, processing, and retail sales. Some cities and counties do not allow any cannabis businesses and others limit the number that can operate within their boundaries. Both state and local zoning rules apply and sometimes they are not in agreement.
In areas that allow marijuana, the property you choose must be zoned for your particular type of business. If you are going to grow marijuana, the property must be zoned for agricultural use. Specific land use regulations must also be considered.
In general, processing plants and retail marijuana businesses are only allowed to operate in manufacturing and industrial zoning areas. They are also not permitted near schools and parks and typically are banned from residential locations.
Your license will be based on the type of marijuana business you plan to run. The Department of Cannabis Control for California issues licenses at the state level. Sometimes based on the business multiple licenses will be necessary. Your license may also require licensing/permitting by the county or city.
A cannabis real estate lawyer can help you determine what licenses you will need and guide you through the licensing application steps.
Cannabis businesses run a high risk of theft and robbery. For licensing purposes and protection of your business you will need to put proper security measures in place. These measures may include outdoor lights, surveillance cameras, access control, and security patrols.
You must also maintain compliance with state and local regulations regarding storage, processing, and disposal of cannabis waste.
Obtaining a lease for a cannabis property can be challenging for various reasons.
Even though marijuana is legal in California (and many other states), it is still illegal under the federal Controlled Substances Act. These federal restrictions can make it difficult to find cannabis-friendly landlords. Often property owners are not willing to take the risk of potentially getting into trouble with the federal government, so may refuse to lease to cannabis businesses.
When a landlord does agree to lease to a marijuana business, landlord-tenant disputes can be more likely to arise due to the unique aspects of cannabis operations. For example, if a landlord becomes nervous about possible federal action, they may attempt to end the lease early, which could lead to expensive litigation and leave your business without a home.
If federal authorities were to go after a legal marijuana business in California, they could seize the assets of the business owner and the business. They could also take the property of the landlord who leases to the cannabis operation. This civil forfeiture risk puts landlords and tenants in precarious positions. It can further dissuade landlords from leasing to marijuana companies.
A strong lease agreement that includes the full range of potential issues and terms for addressing those issues is a necessity for every cannabis business. Your experienced cannabis commercial real estate lawyer can advise you about what your lease should include and negotiate with the landowner on your behalf.
Every new business faces some risk. Because of conflicting laws, rules, and regulations related to marijuana, cannabis businesses face more risk than most—and risk starts right from the get-go, when trying to identify a business location.
Your real estate lawyer can help you mitigate risk so you do not violate local and state regulations. An attorney who is knowledgeable in the area of cannabis commercial real estate can review the site you are considering to ensure that your use of the land is in compliance with zoning laws.
Your lawyer can also help with licensing concerns at both the state and local levels. We can assist you by negotiating sales contracts and leasing agreements, or reviewing agreements that have already been prepared to make sure your rights and interests are protected before you sign anything.
The marijuana industry in California involves a relatively new area of the law, and one of the largest impediments to starting a cannabis business is identifying the right location and property for it. Many commercial real estate lawyers are not familiar with handling property issues and disputes for cannabis business owners.
Our well-informed cannabis real estate attorney can help you through every step of real estate leasing or buying so that your business starts off on solid legal ground.
At McElfresh Law, we have a strong focus area in helping legal marijuana businesses grow and thrive. We provide well-informed counsel related to zoning, licensing, lease agreements, and other property concerns. Call us today at (858) 756-7107 to schedule a consultation.
"*" indicates required fields
