For several years there has been a stigma attached to medical marijuana cultivators trying to lease space within MMJ legal states. This comes from the misguided idea that there is still a threat of seizure and forfeiture of property by the federal government. It has gotten to the point that many landlords would rather leave a perfectly good warehouse space vacant rather than open their doors to medical cannabis growers.
In actuality the Cole Memo, created in 2013 by the Obama Administration and released to federal prosecutors and law enforcement outlines the governments position on medical marijuana. This memo essentially waved the “white flag” in regard to those operating legally in accordance with their respective state's medical cannabis laws. This memo took the focus away from raids and instead turned them on to matters of public safety. As a result, the DEA was left without any real power against marijuana growers and those that choose to rent to them.
As a broker that specializes in medical marijuana, I have helped hundreds of property-owners rent their properties specifically for cannabis cultivation. Throughout my six years in this field I have learned the ins and outs of MMJ leasing and I can honestly tell you that the risk is almost nonexistent. If you have a warehouse that is currently sitting vacant, why not choose the safe bet? Lease your space through our licensed brokerage to a licensed marijuana cultivator.
Still hesitant? Then consider my list of reasons on why you should allow marijuana cultivation into your building:
1. More Money - Cultivators will typically pay 50% to 150% more than what your typical renter will pay for a landlord who approves marijuana cultivation as a use on their lease. Having a marijuana friendly landlord helps give a legitimate cultivator piece of mind that he can maintain business as usual and be in compliance with California state law.
2. Payments On Time - Cultivators are typically the most punctual renters around! They don't need an angry landlord talking about how bad the marijuana growers are in their building.
3. No Tenant Improvements Necessary - Cultivators don't ask for or need Tenant improvements. Your building is perfect "as is" so you don’t even need to offer.
4. Quiet Tenants - Cultivators don't have parties and they don't like people watching them, which make them very low key occupants. They try their best to be indiscernible and, honestly, if they actually could be invisible they would be.
5. Open to Square Footage – Is your space 1,000 square feet? 20,000 square feet? Whatever the size there is a group of eager growers ready to pay top dollar to move in and begin working.
6. MORE MONEY - Are you really going to turn down a guy that will pay $1.50 a square foot for a space that you weren’t even able to rent out for $1 a square foot?