How Landlords Can Navigate Cannabis-Related Leases

Real Estate attorney Kyla Baker authored an article for Law360 exploring key factors that landlords should evaluate when leasing to cannabis businesses. Although roughly two-thirds of states have legalized recreational cannabis use — and nearly three-quarters for medicinal purposes — it remains illegal at the federal level, which creates a conundrum for landlords. Ms. Baker's article reviews due diligence steps to take and measures to include in lease agreements, including checking local zoning laws and permit requirements, odor and ventilation control, security elements, insurance coverage, and default and termination clauses. She also notes potential regulatory changes in the SAFER Banking Act and the potential rescheduling of cannabis from a Schedule I drug to a Schedule III drug that could ease landlords' concerns.

Ms. Baker previously published a Holland & Knight Retail and Commercial Development and Leasing blog on this topic.

READ: How Landlords Can Navigate Cannabis-Related Leases (Subscription required)