4 Issues With Converting Warehouses To Cannabis Farms

November 6, 2019Media Mention

Leasing to cannabis growers presents a unique set of challenges for warehouse owners looking to cash in on the drug's legalization in many states, whether it's ensuring safety and security or getting the backing of lenders and insurers. But lawyers say keeping a few key points in mind during the leasing process can go a long way in avoiding problems.

Landlords who are seeking to lease their warehouses need to be keenly aware of state and local laws, and the local portion of the approval process can be tricky given that cities run the gamut as far as what sorts of rules are on the books.

"The first issue that always comes up is the landlord and the tenant needs to do a deep dive into state and local requirements," said Kenneth Fields of Greenberg Glusker Fields Claman & Machtinger LLP. "Often, tenants try to tie up space and have no idea if they can legally operate in the space."

That, Fields said, can result in monthslong delays for landlords.