Local municipalities are rolling out cannabis regulations. National City in San Diego, for example, is drafting an ordinance that would allow marijuana production and sales, and Encinitas, Imperial Beach and Solana Beach, are likely to vote on ballot initiatives in 2020 that would allow both marijuana production and sales. The state is also working on a bill to allow banks in the state to apply for charters to handle marijuana transactions, which are prohibited by federal banking regulations and currently force the industry to operate on a cash basis. While new regulations will allow cannabis usage, local municipalities are also looking to separate cannabis companies from the general public.

"Municipalities want to create a clear separation between cannabis manufacturing/cultivation and dispensaries and the general public, especially places where children can be found such as schools, parks, churches, residential areas, and thus the approval process for these potential facilities is designed with this in mind," Paul Britvar, director at Newmark Knight Frank, tells GlobeSt.com. "Due to the fire risk and odors, industrial submarkets are the ideal locations to achieve minimum exposure to children and the general public, which is why the effects of the cannabis industry have been so evident in the industrial realm."