What Landlords and Cannabis Operators Need to Consider When Negotiating a Lease

Pullman & Comley Real Estate Attorney Christopher M. Rousseau discusses the rapid expansion of the cannabis industry and the unique legal considerations for leasing spaces for cannabis businesses in an article for Benzinga, a national financial news publication.

“As of January, 24 states have legalized cannabis for recreational use and that number is likely to grow over the next few years,” Chris writes. With this expansion, both landlords and tenants must navigate additional considerations beyond standard leasing transactions, such as local land use regulations, financial covenants, buildout requirements and payment of rent, ensuring compliance with loan covenants and appropriate tenant licensing contingencies.

By addressing these considerations landlords and tenants can establish successful leasing relationships in the evolving legal cannabis market. Clear agreements and collaboration between landlords, tenants and legal advisors are essential to mitigate risks and meet industry requirements.

To read the full article, please click here.