Potential Complications for California Cannabis Company Real Estate Lending & Commercial Leases
Over the next five years, it’s expected that the cannabis industry is going to double from its current size. Inevitably, this amount of fast-paced growth is going to demand a lot of funding – and space. Of particular concern are the property acquisitions and real estate investments that will be necessary to expand operations of cultivation and distribution facilities, as well as retail stores.
But as our Los Angeles cannabis company lawyers can explain, such deals are going to be a bit more complicated compared to other types of commercial contracts and lending. The fact that marijuana remains illegal under federal law inevitably has landlords, lenders, and financial institutions wary of engaging. The potential for sizable profit margins is certainly a draw, but concerns about forfeiture and fines can’t be entirely glossed over.
There is certainly a great deal of opportunity for real estate financing and leasing operations, but there is undeniably a greater complexity when it comes to opening the doors to marijuana-related businesses. Lenders and landlords need to proceed with calculated care and caution. Contracting with a longtime cannabis lawyer can help cannabis companies, investors, property owners, and financial institutions to make smart decisions that will best protect their assets and further their interests.