California has positioned itself as a leader on emerging cannabis policy. While federal law still prohibits cannabis-related activities within the State's borders, several largely progressive laws in California permit the possession, cultivation, transportation, and distribution of cannabis. The effects of the burgeoning cannabis industry are far-reaching, and have already proven to significantly impact the real estate industry. This Article addresses the history of cannabis regulation within California, the legality of various land use approaches employed by jurisdictions throughout the state and some of the nuances a property owner should consider when negotiating a commercial lease with a tenant who intends to use the premises for a cannabis-related use.
Cannabis laws are complex and constantly evolving. This Article provides an overview of some considerations that a real property owner may encounter when contemplating whether to establish cannabis facilities or whether to lease space to a cannabis cultivator, manufacturer, testing laboratory, retailer, microbusiness or distributor.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.