Property rental is often a business’s largest expense, and for cannabusinesses, the consequences of a bad lease are even more severe. Guidant’s Gary Smith pointed out lease pitfalls to avoid in a recent article for Green Entrepreneur.
In this article, Gary explains how a bad lease in the cannabis industry may be worsened by existing financial and legal restrictions, including 280E requirements, strict zoning, an inability to file for bankruptcy and more. Simultaneously, landlords who rent to cannabusinesses may be subjected to many of the same restrictions and risks as their tenants.
Gary encourages cannabusinesses to take account of the lease term, exclusivity, electrical supply and several other aspects before making a commitment. Property rental, as Gary writes, can play a huge role in a cannabusiness’s ability to achieve their short- and long-term goals.
Gary Smith is among the leading cannabis attorneys in Arizona. He is the founder and current president of the Arizona Cannabis Bar Association. His practice centers on assisting his clients in navigating the cannabis industry’s complex legal landscape, including providing counsel on commercial leases.