Leasing Issues to Keep in Mind When Dealing With Marijuana Businesses

Fifty years ago, the first states began to decriminalize simple possession of marijuana. Shortly thereafter, some began to authorize the use of marijuana for medicinal purposes. Ten years ago, Colorado and Washington broke barriers by authorizing individuals older than 21 to use marijuana recreationally and that number has since expanded to 11 states across the country. Today, in 22 additional states (33 total), at least some form of medical marijuana is legal, introducing a budding new industry of prospective marijuana-related tenants to the market, including dispensaries and growing facilities. Nevertheless, marijuana business advocates still face legal risks since the substance in most forms remains illegal under the federal Controlled Substances Act.

The quick nationwide expansion of laws related to the legalization of marijuana has resulted in a patchwork of inconsistent regulations among states that are all ultimately irreconcilable with the still-existing federal prohibition on marijuana consumption. However, bipartisan majorities support legalizing recreational marijuana and that number is expected to continue to trend higher every year. Even though the Trump administration has not taken the same favorable stance toward state legalization efforts as the Justice Department did under President Barack Obama, federal enforcement of marijuana-related crimes are rare due to a lack of appetite for such prosecutions and other local discretionary concerns.