Seyfarth Shaw LLP has released the results of its fourth annual Real Estate Market Sentiment Survey, which polled commercial real estate executives around the country from all sectors. Of interest to our readers, this year’s survey revealed that, despite the dramatic increase in the number of states legalizing marijuana, 85% of respondents are putting the brakes on investing in cannabis use real estate or leasing space to the cannabis industry. This is not surprising, given the current state of federal law, lack of credit availability from financial institutions, and lack of title insurance.

What about the other 15% who do plan on investing in CRE for marijuana use? Most (70%) do not plan to invest anytime soon, indicating an investment horizon of at least 2-5 years. Notably, however, 20% of those respondents planning to participate in the industry already have their hands in the pot business.

View the full survey results

 


Twenty nine states plus the District of Columbia have legalized medical marijuana and eight of these states plus D.C. have legalized recreational marijuana.  Additional states are considering some form of legalized marijuana use.  This has created a new and growing demand for leasing industrial, agricultural and retail properties for growing, manufacturing and dispensing cannabis.  Given this growing demand for real estate, it is important to reflect on how many boilerplate provisions in commercial leases are not suited to covering a use that continuously puts state law at odds with federal law. Continue Reading Don’t Get Smoked in Your Next Commercial Marijuana Lease

Welcome back to The Week in Weed, your Friday look at what’s happening in the world of legalized marijuana.  Note: we reported on the Florida ballot issue yesterday, so this is a look at what else is happening.

To the red-and-blue map of American politics, it may be time to add green.

Industrial real estate is being shaken up by a growing marijuana industry. Panelists at a CREW New York event focused on the industrial real estate sector during the organization’s annual convention held at the Midtown Hilton last week, said the business is among the most fascinating and complex trends underway right now.

DCM Ventures’ David Chao talks about his personal journey with medical marijuana.

Something we missed that everyone needs to know?  Give us a shout in the comments.