With some form of cannabis use legalized in most of the U.S., commercial property owners are increasingly presented with opportunities to lease to cannabis-related businesses. State regulations legalizing CBD, hemp, and recreational and medical cannabis, as well as conflicting federal laws, require real estate and business attorneys to consider a variety of complex rules to draft or modify cannabis-related commercial leases effectively.
The unique challenges and opportunities inherent in leasing to cannabis-related businesses require counsel to reevaluate standard commercial lease terms and amend provisions such as rent structuring, licensing, zoning, permitted use of the premises, compliance with laws, inspection rights, law enforcement, and personal guarantees.
Listen as Harris Bricken attorney, Jonathan Bench, Seyfarth Shaw attorney, Christopher J. Palmese, and Leech Tishman Fuscaldo & Lampl partner, Michael H. Sampson advise counsel on preparing commercial leases for the growing number of property owners seeking to lease to a cannabis-related business as the cannabis industry expands. The panel will discuss common issues that arise, including the structuring of rent, banking restrictions, permits and zoning, and insurance and related risk management.
- Overview of state laws related to leasing to cannabis-related businesses
- Standard lease provisions to address
- Rent structuring
- Permitted uses
- Compliance with laws
- Inspection rights
- Assignment and subletting
- Federal asset forfeiture
- Change of laws
- Additional concerns
- Insurance coverage
- Practical considerations