Cannabis Real Estate in Business Sales
Real estate in a cannabis business sale
In cannabis the property is often worth as much as the license, and a lease without cannabis-use consent can kill a deal. These pages cover zoning buffers, landlord consent, sale-leasebacks, build-out and security requirements, cap rates and relocating a license.
Federal and state law current as of September 2026 — verify with counsel.
Buying the building with the license
Should you buy the real estate along with a cannabis business? Own vs lease decision table, how to pay for it without a bank, entity structure, and diligence.
Cannabis property values and cap rates
How cannabis real estate is valued: cap rate arithmetic, what REIT filings imply about yields, why licensed-use value differs from vacant value.
Cannabis real estate basics
How cannabis real estate works: licences tied to an address, state buffer rules, why banks rarely lend, REIT lease terms, and what it means in a business sale.
Cultivation facility build-out costs
Published cost ranges for indoor cannabis grow build-outs, system-by-system budgets, energy rules that drive design, and why built cost is not resale value.
Extraction facility requirements
What a compliant cannabis extraction room needs: C1D1 and C1D2 classification, NFPA 1 Chapter 38, engineer certification, gas detection, and what buyers must verify.
Landlord consent and cannabis lease clauses
A buyer's lease review checklist for cannabis deals: use clauses, assignment and change-of-control consent, termination triggers, lender issues, and estoppels.
Relocating a license
Can a cannabis licence move to a new address? California says no, Colorado, Massachusetts, Washington, New York, and Illinois allow it with approval.
Retail build-out and security requirements
What a cannabis retail build-out must include: camera, alarm, vault, and guard rules in California, Massachusetts, and Michigan, contractor cost ranges.
Sale-leaseback with cannabis REITs and landlords
How a cannabis sale-leaseback works, what REIT filings show about lease terms and tenant defaults, the rent-versus-multiple math, and using one to fund a purchase.
Zoning, buffers, and conditional use permits
State cannabis buffer distances with statute cites, how each is measured, what happens when a school opens later, and how conditional use permits affect a sale.