Unlike most commercial real estate, the cannabis real estate landscape is limited by regulations and ordinances that go far beyond choosing the best location for traffic counts. You’ll need expert help navigating all the green zones and setbacks to ensure your cannabusiness is compliant and in an advantageous location.
Each municipality is different, and even neighboring municipalities can have entirely different requirements. So, it’s important to work with someone who can help you choose the best location for the cannabusiness you’re building.
You have two main options: work with a commercial real estate agent to choose your property, or work with a cannabis consulting firm that can act as a sort of one-stop shop for the entire setup process. But which is the best, most cost-effective choice in the long run?
Read on to find out whether a commercial real estate agent or a cannabis consultant is the best choice to help you with your cannabis real estate.
Commercial Real Estate Agent: Help Selecting Property
When dealing with cannabis real estate, you’ll need a brokerage relationship of some sort to navigate contracts and coordinate all the moving parts of the transaction. A commercial real estate agent will likely have experience with the contract process and can help you assess traffic counts to choose a potentially profitable location.
However, especially if you’re in cultivation, there’s a lot more to consider than just traffic. For example, if the building previously housed any sort of cultivation, you’ll need to know whether they used any pesticides or left anything else in the building that could potentially harm your crop.
You’ll also need to know what it will take to operate the building as a cannabis facility. While the property might look good on the surface, things like mold, lighting, and ventilation will impact the facility’s operation, as well as the cost of retrofitting the property into a cannabis facility.
A commercial real estate agent may not be familiar with all these considerations or know what to look for in an ideal cannabis real estate location.
Cannabis Consulting Firm: A One-Stop Shop
When choosing your cannabis real estate property, working with someone who has a cannabis background is essential. You need someone who knows what to look for and about ordinances and regulations for the particular municipality you’ll be operating in.
While a commercial cannabis real estate agent will start by identifying the best traffic count area — without regard to green zones, setbacks, etc. — a cannabis consultant can start with the areas where a cannabis facility can actually be placed. From there, they can help select the best of those available locations.
Also keep in mind that for cannabis real estate, you’ll need more than just the property. You’ll also need to coordinate design and build, METRC compliance, security, and so on. Having one firm handle all of those considerations will save you a ton of time and money.
Real estate is a large purchase — one of the largest parts of your business — and it’s something your business is going to be connected to for a really long time. You want to make sure that the property you purchase is going to work for cannabis specifically.
The last thing you want is to start the process of a cannabis real estate property purchase only to find out it won’t actually work for cannabis and have to start all over again. A cannabis consultant can offer perspective on all the different elements of a cannabusiness and help you avoid any unexpected missteps.
Making the Best Choice for Your Cannabis Real Estate
When choosing who to work with for your cannabis real estate, weigh heavy on finding someone with at least some cannabis knowledge. The industry has so many nuances to stay compliant on, and you don’t want to overlook any minor detail.
You also don’t want to get yourself stuck with a property you can’t actually use, which can happen in more than one way with this industry. Choosing the wrong property is one, but it could also be a simple matter of the licence you applied for falling through.
This sort of situation is unique to cannabis real estate, so someone without cannabis experience may not know to prepare for the possibility. A cannabis consultant, on the other hand, can help put contingencies into your contract to protect you if you don’t end up winning the license.
Along with industry-specific knowledge and experience, cannabis consultants are often equipped with specialized tools. For example, at HYC, we use geomapping and other software systems to locate the best cannabis real estate properties.
Get Help Navigating the Cannabis Real Estate Market
Especially in a saturated market, choosing a cannabis real estate property can quickly turn into a game of Where’s Waldo?, so it’s important to work with someone who has the tools and knowledge to set you up at your greatest advantage.Ready to talk to a consultant about choosing your cannabis real estate property? Reach out to us to schedule a consultation.