Cannabis business opportunities abound in two specific states, New York and Maryland, due to product popularity and smart legislation. Canna Real Estate Group (CREG) is working diligently in these areas and bringing our 10-plus years of cannabis-specific commercial real estate experience from the West and Midwest markets to the new recreational-use markets on the East Coast. Learn the latest news in cannabis licensing, regulations and business and plot your next move!

Get a New York Marijuana License!

Applications are currently being accepted until Dec. 18 for microbusiness licenses, adult-use cultivator licenses, adult-use processor licenses, adult-use distributor licenses, and adult-use retail dispensary licenses. Also open until Dec. 19 is the application window for those seeking a New York marijuana license for medical cannabis retail. This specific application window is for “registered organizations” that are New York’s version of MSOs. MSOs are companies that provide non-clinical services to medical practices or other healthcare providers.

In the regulations realm, Gov. Kathy Hochul has signed legislation providing tax relief to New York City cannabis businesses currently blocked from making federal deductions under an Internal Revenue Service (IRS) code 280E. This bill is in addition to the legislation passed last year for the state of New York cannabusiness to be allowed tax deductions, as New York City had its own tax laws that weren’t affected by that change.

“This bill would allow a deduction for business expenses, incurred by taxpayers authorized by the Cannabis Law to engage in the sale, distribution, or production of adult-use cannabis products or medical cannabis, for purposes of the unincorporated business tax (UBT), the general corporation tax (GCT), and the corporate tax of 2015, commonly referred to as the business corporation tax (BCT),” a summary says

Similar legislation passed in New Jersey in May, where CREG has established projects and is seamlessly expanding our reach to New York, Maryland and Pennsylvania.

A lawsuit settlement may pave the way for business changes within the industry. New York regulators and a group of disabled military veterans who challenged the NY marijuana license process have reached “an agreement in principle to settle this matter,” according to court documents. The agreement is expected to lead to the end of a temporary injunction, which prevented more than 400 conditional adult-use retail dispensary (CAURD) licensees across the state from opening for months.

Demand for a NY weed license may be boosted by “Roadmap to Adult Use Application” events, which are being held by the New York State Office of Cannabis Management (OCM) to inform those interested in New York dispensary regulations, licenses and processes. Local news CBS 6’s Briana Supardi spoke with attendees about the workshop: one participant, Lauren Breland, noted licensing is “not so much an arduous process.”

Open a Maryland Cannabusiness!

Cannabusiness is also expanding in Maryland, where adult-use cannabis business license applications are currently being accepted until Dec. 12. MD marijuana license rewarding will go to 75 standard dispensary licenses, 16 standard grower permits, 32 standard processor licenses, 24 microgrower permits, 24 microprocessor licenses and eight microdispensary permits.

Applicants for a Maryland marijuana license can try for one application per license type, and no more than two applications per round will be accepted. Recreational cannabis has been on sale in the state since July 2023, and sales are estimated to surpass $275 million this year.

Maryland dispensary regulations, in regard to zoning limits, are being reviewed by some counties, as leaders are being advised to use logic when thinking about using zoning to restrict cannabis businesses.

Currently, 101 dispensaries hold state licenses, and Maryland cannabusiness is “on the cusp of a dramatic expansion”. However, a handful of counties have “no exposure to cannabis businesses today and that is definitely going to change moving forward,” said Will Tilburg, acting director of the Maryland Cannabis Administration.

“So, we’re talking about a total of 75 dispensaries in this round, which would bring the state total to 176 compared to about 7,000 alcohol outlets in the state,” said Tilburg.

Another round of licensing is expected in May.

Cannabusiness in Maryland may have found another route to consumers: private dinner parties featuring cannabis-infused food. Baltimore chef Jazmine Moore conceives and cooks such meals.

“A lot of people are moving away from alcohol, and they are looking for more alternative ways, maybe just to relax and enjoy,” said Moore, who goes by Chef Jazz. Chef Jazz says guests feel the equivalent of a few glasses of wine by the end of the meal.

Cement your business in the cannabis real estate market!

Healthy, expanding markets in both New York and Maryland translate into smart business. CREG is established and active in all phases of site acquisition for cultivators, processors and retailers, and is advising qualified license applicants to identify compliant sites needed for the application process. We are so confident in the industry that we are also investors and shareholders in our clients’ cannabis businesses. Contact CREG for a free cannabis real estate consultation!

Canna Real Estate Group not only specializes in commercial cannabis real estate, but also provides financial, architecture and construction consulting. As these industries are perpetually evolving, we are always on the lookout for ways to make more inroads in cannabis compliance, application strategy and the smorgasbord of available cannabis licenses — cannabis cultivation license, processor, nursery, distributor, retail, delivery and on-site consumption. Canna Real Estate Group is now offering consultation and assistance with cannabis license applications and compliance with partner Jim Boland of Two Buds Consulting.

Canna Real Estate Group collaborates with Two Buds Consulting to provide support for applications such as commercial cannabis growing licenses and cannabis cultivation licenses, as well as compliance tailored to both local and state-wide rulings. Jim Boland is an attorney with broad experience providing business and application strategy to clients in the highly-regulated cannabis space.

Boland entered the emerging cannabis industry via a Chicago startup in 2018. This startup grew into the largest vertically integrated cannabis company in the United States during his tenure. In 2021, he then joined one of the country’s largest private cannabis law practices, supporting clients with regulatory and licensing matters in several states.

Additionally, Boland is an adjunct professor of cannabis law at South Suburban College, which offers a Cannabis Dispensary Operations certificate program to prepare students for career opportunities in cannabis dispensaries.

These experiences laid the groundwork to open his own firm in 2022, Two Buds Consulting, to serve independent contractors and small to midsize multistate operators, typically with fewer than 10 licenses, who are seeking single retail, manufacturing or cultivation licenses. With Boland’s expertise in regulatory, compliance and licensing issues, Two Buds Consulting provides comprehensive cannabis legal and consulting services to assist client navigation through the complex cannabis landscape. The includes assistance with:

• Application development
• Licensing assistance
• Marketing review
• Corporate governance
• Privacy considerations
• Compliance consulting

Two Buds Consulting provides the following services:

• Document creation and review
• Regulatory interpretation and representation
• Business formation and documentation
• Corporate governance
• Application strategy
• Content development and review
• Submission preparation
• License renewals
• Officer and employee badging
• Early-approval applications and licensing
• SOP development and review
• Facility compliance assessments
• Training plan development and review
• Marketing and brand review

Working with Two Buds ensures that a business is incorporated using the most appropriate structure. Additionally, Boland advises clients on entity formation, application writing, regulatory compliance and local zoning approvals.

Assistance with these areas is essential, especially in the cannabis industry. According to the U.S. Bureau of Labor Statistics, one in five American businesses fail within their first year. Although it is a rich domain, cannabis businesses are not immune to closure. Here are five common issues Canna Real Estate Group and Two Buds Consulting have identified:

1. Complacency after receiving a license
2. Running out of capital or other key resources
3. Miscarriage of tax and regulatory compliance
4. Not marketing correctly or to the right audience
5. Failure to adapt when the market or law changes

Many newer operators don’t realize they’ll be held to all the promises and commitments they made in their initial applications, according to Boland.

“When they’re unsure of what to do to remain in compliance, some operators are hesitant to communicate with regulators, which only puts them at a higher risk of making mistakes,” said Boland.

Do you see familiar themes here? There is no need to become an industry statistic. The best new businesses have robust plans for success. According to AllTopStartUps.com, some of the most effective ways to avoid failure are to:

• Have realistic goals
• Do your research
• Build a strong team of experts

Take control of your business and utilize experts with your best interest at heart. Contact Jim Boland and the Canna Real Estate Group team if you are looking for a cannabis application and compliance consultant with big law and in-house experience without the price tag of a large law firm.

Read the blog to learn more about how CREG is supporting the cannabis industry in 2023, specifically regarding upcoming changes in New York, Connecticut, Maryland and Missouri.

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.

New York

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

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.

Maryland

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.

Missouri

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.

CREG Can Help You Find Cannabis Properties, Land for Sale in 2023

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.

Entering and expanding within the cannabis market require similar paths in some aspects. First, the commodity itself must be legalized or be very close to legalization. Then laws and guidelines are established. Finally, licenses are awarded. One element of this process that can be addressed before legalization, and must certainly occur before new or expanded business, is real estate. Even companies focusing solely on online sales need to consider their local cannabis real estate market. Canna Real Estate Group is following the market and offering insight on real estate hot in new cannabis states as well as what is predicted for the future.

Retail space, both rented and purchased, has exploded in demand. As a result of midterm legalizations, the most recent Marijuana Business Factbook projected that sales for the legal U.S. cannabis industry could reach $30 billion in 2023, which is triple the amount of total cannabis revenue in 2018. Not only are dispensary locations in scarce numbers, but “green-zone approved” properties for cultivation, manufacturing and processing are also running low. For companies looking to cultivate, process and sell cannabis, highly intricate dual-property real estate acquisition plans must occur simultaneously to properly accommodate property licensing. If sourcing multiple properties or facilities doesn’t happen concurrently, operators may run into halting issues. This is why familiarity with cannabis real estate absorption is essential.

What is absorption in real estate and why is it important? Absorption rate most commonly refers to a metric used in the real estate market to evaluate the rate at which available properties are sold in a specific market during a given time period. It is calculated by dividing the number of properties sold in the allotted time period by the total number of available properties. This equation can also be reversed to identify the amount of time it would take for the supply to be sold. Cannabis commercial real estate absorption knowledge marks those in the know.

Another unique aspect to cannabis real estate is that a large portion of businesses seeking space do not have a preference of location. This lack of inclination is only hindered by city and county zoning laws and occasionally local (vocal) opinions largely perturbed by the smell of cannabis being recognized by their own clientele. According to data from the National Association of Realtors (NAR), members who are employed or who invest in the commercial real estate sector have noticed the following trends:

• 22% of members in states where medical marijuana is legal have noted some tenants do not want to be near a dispensary.
• 28% of members in areas where both medical and recreational cannabis are legal have noticed this within the past four years.
• This number rises to 38% in states where both forms of cannabis were legalized more than four years ago.

Valuation of cannabis properties is complicated because a lot is contingent upon the timing of federal legalization, says Matthew Karnes, CPA and founder of Greenwave Advisors. In general, both cannabis businesses and real estate are valued based upon projected cash flows, but the added nuance related to cannabis involves Section 280e, or the higher taxes to which cannabis companies are subjected.

“The longer prohibition continues, the harder it will be for many cannabis companies to continue as a going concern due to the added costs of prohibition, most notably income tax,” Karnes said. Section 280e of the IRS code can have an effective tax rate as high as 70 percent, which has prompted a surge in distressed asset sales, he said.

Looking to avoid Section 280e? Cannabis Real Estate Investment Trusts (REITs) are appealing to investors because they are not subject to Section 280e. Cannabis REITs are corporations that own and manage real estate. REITs issue units (similar to stock shares) that give investors access to the income generated by the REIT’s property portfolio.

For those who prefer to go the non-corporation-establishing route, here are some potential issues of which to be prepared:

1. Be diligent into perpetuity with zoning laws and regulations where the business is located as even established rulings can change.
2. The “green tax” is often added to prices in areas where legalization is new or expanded. If possible, try to lock in prices before land grabbing occurs.
3. Read contracts carefully and be aware of landlords who charge a premium to lease to cannabis businesses.
4. Be prudent with insurance; more is better than less and will help improve tenant/landlord relations, plus provide peace of mind.

Canna Real Estate Group specializes in commercial cannabis real estate and provides real estate, financial, architecture and construction consulting. The knowledgeable and experienced staff excel at recapitalizations and restructurings, mergers, acquisitions and more. Use our insight for the benefit of your business by scheduling a meeting.

The Nutmeg State is establishing its footing in the adult-use cannabis industry and may soon earn itself association with a completely different kind of seed. Projected sales show about $160.3 million by 2025 and $750 million by 2027. While legislative members and other entities establish guidelines, run lotteries and handle details of a completely legalized marketplace, the necessary information on how to start a cannabis business in Connecticut is not always clear. Keep reading to learn more about the Connecticut cannabis business license process, application requirements and latest updates.

Recreational cannabis was originally legalized with the intent to regulate in the state on July 1, 2021, and the Department of Consumer Protection (DCP) became responsible for business licensing and regulation. The DCP then announced regulations for recreational cannabis, with an effective date of Oct. 16, 2021. These regulations define parameters for business owners, and include precedent-typical items such as child safety, product quality and prevention of product deviation. In February 2022, the DCP began accepting Connecticut cannabis applications for certain adult-use cannabis business licenses. On July 12, a state panel began the process of issuing the first cannabis cultivator licenses by accepting 16 applications as having satisfied social equity standards. 

Connecticut cannabis applications

Connecticut announced Sept. 22 the six cannabis retailers who had met the requirements for social equity status and, pending additional approval and payment of license costs, will be among the first to sell adult-use recreational cannabis in the state. Two micro-cultivator applicants were selected as well as having received equity status to advance in the licensing procedure. A little over a month later, the DCP began evaluations for the cannabis product manufacturer and transporter license categories chosen via the Social Equity Lottery. Connecticut is unique in that it provides financial incentives for medical cannabis business owners to partner with new small or minority-owned businesses to provide assistance over a specified timeframe.

Associated costs for Connecticut cannabis license fees include both non-social equity categories, and social equity or general categories. For example, non-social equity cultivator applications can expect to pay Lottery $1,000, Provisional $25,000, License $75,000, while social equity cultivators will pay Lottery $500, Provisional $12,500, License $37,500. Fees are the beginning of the process. There are also grow space minimums. Cultivators must utilize at least 15,000 square feet of grow space, while micro-cultivator must utilize 2,000 and 10,000 square feet of grow space.

How to start a cannabis business in Connecticut

Knowing the Connecticut cannabis license types and the state requirements are only two steps on the path to success. Education and preparation are key, as the industry and state rules continuously change. Writing and executing a comprehensive business plan will put this information into a format that makes sense to you, as well as financial backers. This plan should also include budget projections and licensing timelines.

Those in the state who were within municipalities who prohibited sales of recreational cannabis may have received good news in the recent midterm elections. Ledyard passed the referendum by nearly 300 votes, and Waterbury voters approved it by about 400 votes. Waterbury Mayor Neil O’Leary says it was close, but voters have spoken. “We will work very closely with Planning and Zoning to make sure that wherever the facility is located, it will not impede the central business district and things like that,” O’Leary said. Connecticut’s first recreational cannabis retail shop is loosely planned for opening early in 2023.

Connecticut cannabis business license seekers

One group gearing for a Connecticut cannabis business license are hemp farmers. With the state’s hemp industry profit dropping more each week, coupled with the ability of hemp growers to convert to cannabis cultivation in one day, hemp farmers are gunning for an advantage. Rep. Michael D’Agostino, D-Hamden, chairman of the legislature’s General Law Committee which oversees the regulation of the cannabis industry, said “I think it’s an important discussion for us to have,” he said. ”The threshold question is how much supply [of cannabis] do we need? Maybe we’ll need double what we have… We need to get the market going.”

D’Agostino said the industry’s “unique role” in its ability to produce cannabis should be recognized. “The question is, ‘How can we fit the hemp farms into the system?’” he mused. Hemp, used in both CBD and cannabis, differ only in their psychoactive component or amount of THC.

Canna Real Estate Group specializes in commercial cannabis real estate and provides financial, architecture and construction consulting. Their premier services are centered around both new and established industry leaders, and they have been trusted for years to provide quality and insightful guidance in cannabis capital markets, development and advising. Contact CREG today for expert cannabis real estate direction.

The state of New York legalized recreational marijuana March 31, 2021. Although a historic day for the region, it remains illegal to sell cannabis products beyond American Indian reservations. The good news is Gov. Kathy Hochul, as well as cannabis regulators, continue saying cannabis sales under a first initial phase will begin by the end of 2022. Tremaine Wright, chair of the Cannabis Control Board, said Nov. 3 they “are on target” to open the first cannabis storefronts in 2022. “There will be stores open before the end of the year,” she said. “We will keep opening until 150 are open across the state.” As December rapidly approaches, here is a review of finished steps and what is planned.

New York Cannabis Business License

In the first quarter of 2022, Gov. Hochul announced a $200 million public-private fund to “promote equity and economic justice in New York’s cannabis industry.” Then, a bill was passed to provide hemp farmers an advantage, via conditional licenses, in growing the first legal recreational cannabis crop for manufacturing. Next, regulators approved a plan to accept applications for a conditional New York cannabis business license for those with both business experience and a record of a cannabis conviction (or have a parent or guardian with one), before other entities are allowed to do so.

The second quarter began with conditional cultivation licenses being awarded. Those numbers quickly reached nearly 150 by May. In the same month, the Dormitory Authority of the State of New York opened two cannabis-related Requests for Proposals (RFPs). One sought a manager for the $200 million fund Hochul announced in January, now known as the “New York Social Equity Cannabis Investment Fund,” which would provide 150 turnkey shops for the retail licensees under the “Seeding Opportunity Initiative.” The other sought “design-build services” for those shops. In June, regulators began accepting applications from hemp farmers seeking a conditional license to process cannabis into products.

The third quarter saw an announcement from regulators noting the application window for the Conditional Adult-Use Retail Dispensary licenses, under the Seeding Opportunity Initiative, would open in the month of August. In September, authorities put out an RFP looking for a bank to work with the equity fund. Now in the final quarter, regulators have licensed more than 200 conditional cultivators and processors, and New York regulators recently released regulations for Conditional Adult-Use Retail Dispensary licenses. The information includes packaging restrictions, recordkeeping requirements, operations allowances and more.

New York Cannabis License Types

A great start, indeed, but the process is far from complete. Recreational licenses will be issued in two major phases: an interim phase aimed to provide a head start to small farmers and “justice involved” individuals. This group is defined by the state as people from communities disproportionately impacted by the war on drugs, as well as people of color, women, financially-distressed farmers and veterans. The following phase will allow most every interested party to apply for a business license. The Office of Cannabis Management still needs to review the 903 submitted applications to make their selections for the 150 spots for the “justice-involved” applicants, and 25 spots for non-profits ”with a history of serving justice-involved individuals and creating vocational opportunities for them.”

Overall New York cannabis license types include “Adult-Use Conditional Cultivator,” which are eligible hemp growers licensed to grow cannabis containing more than 0.3% THC for the upcoming adult-use market, “Adult-Use Conditional Processor,” which are licensees permitted to process cannabis products containing more than 0.3% THC for the adult use market, and “Conditional Adult-Use Retail Dispensary,” which are the first retail dispensaries to open for legal adult-use cannabis sales in the state.

How to Start a Cannabis Business in New York

Per a 2021 report for the New York Medical Cannabis Industry Association, the adult use market is projected to reach $1.2 billion by 2023 and $4.2 billion by 2027. Those interested in learning how to start a cannabis business in New York can get a leg up on the competition, even at this point in the process, by following these steps:

1. Keep tabs on regulation changes and be prepared for change
2. Lockdown funding and setup a reserve
3. Establish a business plan
4. Secure property best suited for the business
5. Formulate processes

No one should tackle a New York cannabis application or new cannabis business alone. Canna Real Estate Group specializes in premier commercial cannabis real estate, and provides financial, architecture and construction consulting for business owners and operators. With more than 30 years of success, CREG is the optimal guide to navigate a New York cannabis license. Start with a consultation today!

Citizens of the United States love their freedoms; this principle is a founding ideal behind our nation’s inception. It should be no surprise a recent real estate study from Redfin, which involved 1,023 U.S. residents who moved to a new home during the 18 months prior to answering the questions in August, found more people prefer to live where medicinal and recreational cannabis is legalized. If this is what Americans want, then marijuana real estate is a key topic upon which businesses should mobilize.

Best Weed Legal States to Live In

According to the survey, of those who recently moved to a new metro area, 46% said they prefer to reside somewhere cannabis is “fully legal,” as opposed to 22% of respondents who desire to live where prohibition is still active. Within the survey, 32% alleged they didn’t care or didn’t contemplate legalization when considering where to live. Diving down into the numbers, more than one in 10 respondents, or 12%, said they would only consider living where cannabis can be legally purchased. Conversely, 10% of surveyors noted they would not relocate where criminalization has ended.

Regarding the survey, Taylor Marr, the deputy chief economist for Redfin, said in a press release: “People take the politics of a place into consideration when deciding where to move, but the truth of the matter is that other factors including housing affordability and access to jobs and schools take priority. Oftentimes this means someone will move from a blue state to a red state (or vice versa), but choose a home in a neighborhood where most people hold the same political views as they do.”

Need another reason to strive to be one of the best weed legal states to live in? Other analyses, including one published in 2022 using data from online real estate marketplace Zillow, has shown marijuana legalization is associated with higher residential property values.

“Home values increased $6,338 more in states where marijuana is legal in some form, compared to states that haven’t legalized marijuana,” it concluded. This finding was backed by an analysis from last year, where economists at the University of Oklahoma similarly found that states which legalize cannabis see a boost in housing prices, with the effect most pronounced once nearby retail outlets open for business. For every $1 million in additional tax revenue from cannabis sales, home values increase by $470, according to another study.

Places Where Marijuana is Legal in the US

Further research released this month, which was authored by a federal official with the U.S. Department of Agriculture, ties marijuana legalization to lower crime rates, a universal factor when buyers are reviewing home values and neighborhood desirability. One reason for the increased value is the associated tax revenue that comes with legalizing and regulating cannabis. Said revenue translates into “new investment in things such as public services and infrastructure.” Places where marijuana is legal in the US have the proverbial leg up in multiple ways from sites not officially found under a Google search for “where is marijuana legal”.

One example is the state of Illinois. In 2021, the state sold around $670 million in cannabis, taking in $205.4 million in tax revenue. Some of this revenue was funneled into supporting organizations that work to decrease street violence — this in turn boosted property values.

A Clever Real Estate study found legalized states saw the greatest gains in home value: “Between April 2017 and April 2021, property values rose $17,113 more in states where recreational marijuana is legal, compared to states where marijuana is illegal or limited to medicinal use.”

For the states that have sanctioned legalization but where sales have not yet started, “home values are predicted to increase by an average of $61,343. Home values increased $22,090 more in cities with recreational dispensaries, compared to home values in cities where recreational marijuana is legal but dispensaries are not available. With each new dispensary a city adds, property values increase by $519. When we controlled for other factors, we found that home values in areas that have legalized recreational marijuana leapt by $17,113 more than places where marijuana is illegal or only allowed for medicinal use. Even when we limited the comparison to recreational versus medicinal legalization, this disparity persisted. Places that legalize recreational marijuana saw home values increase by $15,129 more than those that only legalized medicinal use.”

Marijuana Real Estate Experts

Cannabis legalization affects all aspects of society and with more work-from-home options available, flexibility for American families is at an all-time high. Now is the time to plan and launch your cannabis business, and Canna Real Estate Group is the best way to cut through the confusion. Whether you’re opening a dispensary, designing a commercial greenhouse, starting a grow house, or building a manufacturing facility, we are here to help. We know marijuana real estate through and through.

CREG specializes in commercial cannabis real estate in places where marijuana is legal and provides financial, architecture and construction consulting. Get inspired by some Case Studies, then contact us for a marijuana real estate consultation.

If you’re one of the lucky cannabis license applicants who just received the incredible news that you’ve been granted a cannabis license, congratulations! It’s a huge first step. Your business will be making history. Starting a cannabis business is no small feat. With the ever-changing legislative landscape shifting beneath our feet, the long and winding path to acquire cannabis business financing and complete construction, and a laundry list of requirements to maintain compliance, it’s not surprising that cannabis owners feel they’re stumbling to catch solid footing. Whether you’re starting a commercial greenhouse or grow house, or making plans for a dispensary, the path from license to fully operational cannabis business is a complex one. Thankfully, our business is to know all the intricate steps between “Congrats on your license!” and “We’re open!” Let’s talk about the benefits of engaging the A to Z consulting services of CannaRE\Group to help you fund, source, design, build, and launch your cannabis business. Let’s talk about these crucial steps.

• Check off necessary requirements before applying for building permits
• Make connections with the right people — architects, contractors, lawyers, oh my
• Work with cannabis-industry experts in HVAC, lighting, construction
• Stay compliant at all levels along the way

We help with necessary requirements before applying for building permits

Once you’ve received your cannabis license, a new set of tasks begins. Knowing those steps can be complicated if you’re new to this process. Bill Betts and the team at CannaRE\Group have years of experience assisting cannabis businesses understand and complete the next steps. If you’re starting a commercial greenhouse, your build process can’t begin until you have the proper permits, schematic designs, concept drawings and concept site plans, as well as pre-construction estimates completed by a licensed contractor or firm that knows the intricate specifics of these types of builds.

These plans are meant to take you from concept to schematic, preparing your essential documents to submit before you can start your build. This part of the process will take time and money, but done with the insight from the right people, it can save you potentially hundreds of thousands of dollars and precious days, weeks, and months. CannaRE\Group has the resources and step-by-step plans to execute.

You’ll need these documents prepared before you start to build your cannabis business:

• Concept drawings and concept site plans
• Pre-construction estimates completed by a licensed contractor
• Schematic designs from a licensed architect
• Building permits
• Cannabis business financing

You need experts — we know them

The most impactful step a cannabis business owner can take is delegating crucial next steps to the professionals who can execute the plan. When you’re starting a grow house (or any other cannabis business), you need an expert team to help you avoid common pitfalls like project delays and surprise costs. We have strategic partnerships in all phases of building a new cultivation facility — architects, contractors, investors, lawyers, and more.

Whether our customers are at the stage of securing cannabis business financing, sourcing property, drawing plans for a ground-up build, cultivation facility planning, building, or assessing for compliance, we make valuable connections that turn handshakes into tangible action.

Industry-specific utilities require cannabis-experienced professionals

When it’s time to begin outfitting cultivation or dispensary spaces with the necessary utilities, it’s vital to partner with providers who have cannabis experience. Cannabis cultivation spaces require systems for heating, ventilation, air conditioning, dehumidification, plumbing, lighting, electric, as well as processing rooms, storage space, security considerations, and rooms designed for specialized equipment.

We hear all too frequently about costly problems caused by vendors without cannabis experience. This is not the time to cut corners. Getting it right from the beginning is vital in saving precious time, money, and delays. When we shake hands with new clients who are starting a cannabis business, we facilitate the introduction to providers we trust with proven skills. Our clients benefit from quality services and make life-long partnerships.

We help you to stay compliant at all levels

At every step along the way from concept through opening day, the local town, burrow, township, and state can all have a say in the approval of a new grow house, processing facility or dispensary. Staying in compliance requires professionals well versed in the local and state laws.

An CannaRE\Group, it’s our passion and honor to walk new clients through the process of starting a cannabis business. Whether you’re opening a dispensary, starting a commercial greenhouse, starting a grow house, or building a manufacturing facility, we are here to help. We know this work through and through. You can’t surprise us — we have seen it all.

Are you ready to make your dreams a reality? Let’s start the conversation. We can’t wait to work with you.