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Impact of legalized marijuana on commercial real estate

On Behalf of | Apr 28, 2021 | Uncategorized

The legalization of marijuana has impacted a number of aspects of New York society. This includes the New York commercial real estate market. The legalization of marijuana in the Empire State has impacted New York commercial real estate in a number of different ways.

Commercial real estate and getting into the marijuana game

Investors are interested in how ownership of commercial real estate might benefit from the legalization of marijuana in New York. Current owners of commercial real estate and those interested in investing in this type of property are intrigued by the prospect of the marijuana industry needing space to grow and manufacture product, for retail sales and even ultimately so-called “consumption lounges.”

Hurdles to commercial real estate investment associated with the marijuana industry

Despite perceived opportunities involving ownership of commercial real estate and the marijuana industry, there are significant hurdles as well. Chief among them is the fact that while recreational marijuana has been legalized by the state of New York, sale and possession of marijuana is still a federal crime.

Because what is legal in regard to marijuana in New York remains federally illegal, banks rarely will lend money or even permit the opening of bank accounts for businesses in the marijuana industry. Indeed, marijuana businesses are nearly always cash-only enterprises because they cannot find credit card processors willing to do business with them because of the federal criminalization of marijuana sales and possession.

An individual or business interested in becoming involved in the New York recreational marijuana industry in some manner is well-served retaining the services of an experienced lawyer. There are attorneys in the state who have experiencing in navigating the laws associated with marijuana-related businesses.