Cannabis businesses that are hoping to expand across state lines should absolutely be aware of the triggering levels for regulatory background checks in different states. Just because an investor is a minority owner doesn’t mean they can avoid regulatory scrutiny.
Real estate is an attractive opportunity for investors who want to be involved in the legal cannabis industry without operating a dispensary or grow facility themselves. This is partly because identifying locations that meet the needs of these businesses and also pass zoning and regulatory scrutiny is a major headache for operators. The unique challenges – and high costs – of finding viable locations for cannabis businesses lead to some unusual arrangements between landlords and tenants, and these arrangements pose their own risks to each side.