For the cannabis industry, the theme of 2022 was “anticipation.” Multiple states, some of which were surprising to many, passed medical and recreational legalization legislation. Officials worked diligently toward establishing regulations and utilizing positive precedents set by other states. With these changes in place, 2023 is the year of action. CREG is supporting this action in the cannabis industry by forecasting legalization progress and working with brands on early site selection as they acquire their licenses. Whether you’re looking for grow buildings, cannabis properties for sale, retail space, cannabis land for farming or any other 420 properties for lease, the crucial first step is understanding your state’s cannabis laws. Here is the latest from four states that legalized in 2022.
The Empire State saw its first legal recreational cannabis purchase Dec. 29, 2022. However, New York’s legal cannabis market is not yet completely transparent.
“We’re going to keep working as fast as we can to get more stores operational so New York consumers across the state can experience the sun-grown cannabis products made by the experienced family farmers in New York,” said Office of Cannabis Management (OCM) spokesperson Aaron Ghitelman.
The state is also working attentively to muscle out illicit markets. “We seized millions of dollars of product already,” Chris Alexander, the executive director of New York’s Office of Cannabis Management said. “That’s what we’re going to keep doing. The more dispensaries we open, as well as those other enforcement actions, are what’s going to create the push for folks to transition from the illicit to the regulated market.”
Further, a spokesperson for the New York Medical Cannabis Industry Association recently noted the organization would lobby state officials to lift the three-year delay on “co-locating” adult-use products at medical dispensaries.
Potential action item: Review available cannabis land, grow buildings and grow space for sale or rent to consider collaboration with an established cultivator.
Connecticut Gov. Ned Lamont established himself as a man of action in the new year by publicizing the state’s mass cannabis clemency. As of January 2023, it has processed more than 42,964 cases.
“It’s one step forward in ending the War on Drugs and giving our citizens a second chance to achieve their dreams,” Lamont said.
Connecticut’s first adult-use cannabis shops opened Jan. 10. Six existing medical dispensaries met the requirements for hybrid licenses, while more retailers are expected to be approved following the Jan. 10 launch.
“The Department’s priority is to have a safe, well-regulated marketplace for consumers. I am grateful to the Drug Control and Legal teams at the Connecticut Department of Consumer Protection (DCP) who have worked — and continue to work — tirelessly, since the passage of the law, toward a safe and successful market opening,” said DCP Commissioner Michelle H. Seagull.
Potential action item: Search cannabis properties for sale to capitalize on opportunities presented by delays.
Although adult-use sales are not expected to begin in the state until 2024 or 2025, the voter-approved legalization law has taken partial effect, as adults age 21 and older may now legally possess up to an ounce of cannabis. Additionally, reduced fines and penalties are in place for those who violate the state’s current cannabis laws.
Last year’s voter approval of cannabis legalization, which passed before the end of the year, triggered legislation regarding the expungement of some prior cannabis convictions. Beginning July 1, 2023, adults 21 and older will be permitted to cultivate up to two plants for personal use at home. This extends to four plants per household.
Potential action item: Review available options for cannabis land and grow buildings, as home cultivators will be looking for diversity once adult-use sales open.
New state cannabis laws, which were approved through a voter ballot initiative, went into effect Dec. 15, 2022. These new laws include allowing adults 21 and older to legally possess up to three ounces of cannabis flower. Medical retailers will be the first in line to serve the expanded recreational market. The timeframe for new retailers to enter the market has not yet been determined.
Currently, we don’t have a clear picture of what the future will look like for Missouri’s legal cannabis market. Multiple cities and counties are still working out the fine details of local cannabis laws, and we could see a future market where tax rates and opt-ins vary from city to city and county to county. For example, St. Joseph city administrators have decided not to pursue an excise tax, while Buchanan County officials are considering this path as well. Missouri is capped at a 6% tax on retail recreational sales, and local municipalities are allowed to enact a tax of up to 3%.
Potential action item: Consider 420 properties for lease within a calculated distance of medical retailers, as being too close or too far can negatively impact a business.
If you’re applying for cannabis licenses in 2023 or continuing the process from last year, let’s talk. Canna Real Estate Group specializes in commercial cannabis real estate and provides financial, architectural and construction consulting. Our highly knowledgeable and experienced staff can answer your questions about all aspects of the industry and setting up your business.