Working With A Commercial Cannabis Tenant

The emergence of legalized marijuana for recreational adult use in California, beginning in some counties as early as January 2018, will require those involved in commercial real estate to continue to consider the pros and cons of leasing space to a commercial cannabis tenant.  The opportunities, obligations, and implications are numerous, and this short article touches on merely one aspect for the industry to consider.

As part of the licensing process that will go into effect on January 1, 2018, the State of California is now requiring that cannabis tenants provide a simple written confirmation from their landlord that: (1) the tenant has the right to continue to occupy its leased space; and (2) the tenant may continue to use its leased space for its commercial cannabis activity.