The moment states began making cannabis product sales legal in varying degrees, the dollar signs popped up in the eyes of investors, financiers, and also CRE property owners. High demand products with strong pricing and limited access seemed like a dream.

Except, legal and regulatory snafus and limitations on the businesses meant a lot less profitability. Landlords who might appreciate premium pricing, along with offloading tax, maintenance, and other expenses need to put some significant effort into potential tenant relationships to stay out of trouble.

First, know whether you can lease the space to that type of business. "Where it starts is state law," David Waxman, of counsel at McGlinchey Stafford, tells GlobeSt.com. "Typically, in a statute or regulations, there are a certain number of dispensaries to be had in one area." Cities or towns might be limited in what they can do or allowed to completely opt out. A combination of state and local regulations might specify setback requirements and spacing from schools or places of worship, which can limit eligible properties.