Cannabis: Guidance for Real Property Owners

Summary

As cannabis continues to become legalized state by state across the country, many real property owners may contemplate leveraging their real estate assets and taking advantage of this growing sector of the economy. These real property owners may first ask themselves, "what do I need to do to protect myself?" This practice note discusses key considerations real property owners should evaluate when deciding whether to leverage the use of real property assets within the cannabis industry, with a focus on leasing transactions. Some states and local jurisdictions where cannabis is legal require the inclusion of specific lease or ownership provisions in the documentation governing a sale or lease of real property for cannabis-related purposes. This practice note does not evaluate each jurisdiction and is instead intended as an overview of relevant considerations for real property owners.