The cannabis industry is set to grow significantly over the next decade. In fact, according to Markets and Markets, the industry is expected to have a compound annual growth rate (CAGR) of 24.3% in the United States, reaching a market size of nearly $100 billion by 2027.
With that much capital in play, a huge number of supplementary industries are positioning themselves to provide essential services and logistical support to operators in the cannabis space. One of the most essential of these supplementary industries are the commercial real estate providers, without whom operators could not grow, process, and retail legal cannabis in the state.
Just like every other aspect of running a legal cannabis business, buying or leasing real estate for cannabis activities can be more complex than you would initially expect. With the status quo of the legal cannabis market being what it is today, commercial real estate providers looking to lease properties to cannabis operators need to make security concerns a high priority, as Chris Eggers of CCSS explains in Chapter 8 of his book Securing Cannabis: A Comprehensive Guide To Increase Security, Reduce Costs, Reduce Liability, and Avoid Landmines.
Whether you’re buying, selling, or leasing real estate for cannabis activities, you must be fully aware of local rules and regulations as they apply to zoning, security, and insurance requirements. In order to ensure that your system complies with all three, retaining the services of a security firm like Cannabis Compliant Security Solutions, which specializes in the cannabis field, is highly recommended.
Investing in strong security systems and solid fortifications, the chapter goes on to say, can be integral to ensure that your property maintains its value and can be used during lease negotiations to increase profitability. By incorporating security into your overall real estate due diligence process, you can ensure that the complexity and complications that arise from the cannabis industry’s current state of flux do not impact the profitability of your investment.
There are two aspects to incorporating security into your due diligence: confidential security assessments and a video surveillance system audit. Security assessments are a systematic evaluation of a property to identify potential risks, while surveillance system audits evaluate the property’s video surveillance infrastructure.
These assessments will provide you with a comprehensive checklist of security vulnerabilities facing potential tenants or future buyers of your property. Alternatively, if you are a potential buyer, by performing these assessments you can have a clearer understanding of what corrections will need to be made once the property has changed hands.
The chapter ends with a comprehensive checklist of what items CCSS heavily recommends commercial real estate providers and buyers put in place to integrate security into their due diligence process. To gain access to this checklist, as well as every other piece of information you need to create an effective and compliant security system, we recommend checking out the full book. Securing Cannabis: A Comprehensive Guide To Increase Security, Reduce Costs, Reduce Liability, and Avoid Landmines is now available here!
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