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How to Expedite the Cannabis Property Selection Process

Real estate often turns the wheels of cannabusiness owners. With short application windows and the need to have contingency plans in place, it’s easy to prolong your search for the right cannabis property.

But finding the right location for your cannabusiness doesn’t have to take forever. If you do it right, you can speed up the process and grow your business faster. That said, a cannabis property must meet very specific zoning requirements and therefore must be approached differently than other types of real estate.

To that end, we’ve developed a fast-track process to help you find cannabis property without being caught off guard by common real estate hurdles.

Here is our step-by-step process for finding your cannabis property more efficiently.

Start with green areas

The first thing you need to know is how to choose the areas in which to search for your cannabis property. Many people do this by picking a city, uploading a list of around 1,000 properties in that city, and narrowing the list down to 100 properties from there.

But once they start going through those specific properties, they find that none of them are actually considered cannabis properties, because they’re not zoned properly.

We created our green zone assessments for this reason – because no one wants to move into a place only to find that their canna business isn’t legally allowed to operate there. Instead, our process begins by establishing where the facility you plan to operate is permitted to be located, and then choosing from those locations.

Find requirements

Once you know where your cannabis property can legally exist, do your research to find out what requirements it will need to meet, paying particular attention to regional and municipal setbacks.

Usually, a city will determine setbacks based on the distance of the property from a dispensary or the number of cannabis dispensaries and facilities that may be within a certain zip code or territory. But they will also dictate how far a facility should be from churches, daycares, schools, and rehabilitation centers.

These types of facilities are constantly closing and reopening, but the city can only update its green zone map once a quarter, which means the map can become inaccurate within a week.

At HYC we use a number of systems and databases to create our own up to date green zone maps with all relevant setbacks taken into account. From there, we search for addresses in those areas, giving us a shortlist of addresses which we then check with the city to determine if they are truly eligible for use as cannabis properties.

Get Ground Boots

Once we have our shortlist of potential properties, the next step is to get outside and physically cordon off the area. Sometimes you will even find a cannabis property that is not in the system because it is not yet for sale or rent.

Higher Yield Tips How To Speed ​​Up The Cannabis Property Screening Process

Don’t be afraid to knock on the doors of qualified properties and find out about the business lease and its expiration date. But be very focused on the doors you knock on or else you’ll be wasting your time.

Above all, you must have a process. Many brokers make the mistake of thinking that any property will work and end up narrowing the list of possibilities down to locations that, in fact, won’t work.

Protect yourself from real estate pitfalls

Even once you have found the property, you still need to be strategic when you negotiate with the owner. Some landlords may try to charge more or create a bidding war once they find out you intend to use the space as a cannabis property.

Protect yourself when negotiating cannabis ownership with an emergency agreement, which prevents you from being tied to the property if your license application is denied. Contingency agreements can be difficult to negotiate due to the risk they pose to landlords, so you may need to explore creative solutions.

In some cases, you can reassure the landlord by paying a deposit or agreeing to a smaller monthly lease until your application is officially approved. You may even have to give up your business capital in order to lock in ownership.

If you’re lucky, you could be working with a developer who is early in their career, has a bunch of properties, and is ready to roll the dice on your cannabis property while they get others started.

Finding a cannabis property doesn’t have to take forever

Choosing your cannabis property can be one of the hardest parts of opening a cannabusiness, especially if you approach it as you would any other type of real estate. But with the right process and the right tools, you can minimize risk and choose your property efficiently.

For expert advice and a proven process, contact the CHY for a green zone assessment and to find the most lucrative cannabis property for your business.

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