Real estate is one of the biggest hurdles cannabis businesses face in New York. Zoning rules vary by municipality, land use approvals can be political, and one wrong step can stall your entire project. At Seligson Law, our cannabis law team helps cannabis operators find and secure viable locations while navigating permitting and approval processes.
Real Estate and Land Use Guidance for Cannabis Operators in New York
Real estate can make or break a cannabis business in New York. From vetting lease agreements to analyzing buffer zones and municipal caps on license types, many deals fall apart because the due diligence groundwork wasn’t properly investigated. At Seligson Law, we assist you in securing a compliant location and favorable deal terms.
We advise cannabis tenants, buyers, landlords, and developers on a wide range of land use and real estate issues, including:
- Zoning & Local Approvals: We help you confirm that your proposed cannabis use is allowed under municipal zoning laws, prepare land use applications, and engage with planning boards and elected officials. We’ve guided clients through complex local processes throughout New York.
- Leases & Purchase Agreements: We draft and negotiate cannabis-specific real estate agreements that account for licensing timelines, access rights, and contingency clauses that protect your investment.
- Land Use Compliance: We guide you through site-specific requirements, such as distance setbacks, parking minimums, and neighborhood impact rules. If a compliance issue jeopardizes your license or operations, we respond quickly to resolve it.
- Landlord-Tenant Issues: We represent both cannabis landlords and tenants in disputes, lease renegotiations, and ensuring site use complies with both state and local cannabis laws.
Because land use issues can directly impact your ability to obtain or retain a license, we prioritize a regulatory-first approach. We have represented both landlords and tenants in cannabis real estate transactions for years, so we know what fair terms look like and what red flags to avoid. We help our clients structure deals that comply with cannabis regulations and protect their investment from risk and bad partnerships.
Our New York Cannabis Real Estate & Land Use Process
At Seligson Law, we help cannabis businesses navigate the legal side of real estate with clarity and precision. Here’s how we typically work:
Site & Project Review
We assess your proposed location, business model, and licensing strategy to identify zoning and permitting hurdles.
Deal Structuring & Documentation
We draft or review leases and purchase agreements with cannabis-specific protections to minimize risk and ensure your deal aligns with OCM requirements.
Land Use Applications & Hearings
We help prepare local land use application materials, work with municipal staff, and represent you at planning board meetings or public hearings to acquire project approval.
Ongoing Support & Issue Resolution
We remain available as your business grows, supporting you with renewals, compliance, and addressing any disputes or enforcement issues related to property use.
FAQs
Can I open a cannabis business in any commercially zoned property?
No. Local governments can set specific zoning rules, buffer zones, and license caps. We can help you determine if your site qualifies and explain your options for proceeding if it doesn’t.
What should a cannabis lease include?
A strong cannabis lease should address early termination, licensing contingencies, use restrictions, tenant improvement obligations, maintenance responsibilities, odor mitigation, and the landlord’s right of entry for inspections. We ensure your lease accounts for cannabis-specific risks and includes conditional terms tied to license approval and regulatory compliance.
Can I buy property before I have a license?
Yes, but your purchase agreement should include contingencies tied to land use and license approvals. Otherwise, you could be stuck with a property you can’t use.
What happens if my land use application is denied?
We can help you appeal, revise the project, or explore alternative sites. It depends on the reason for the denial, but you don’t have to navigate it alone.
Do landlords face risk when leasing to cannabis tenants?
Yes. Landlords with federally backed mortgages should proceed with caution, banks can call the loan or deny refinancing if the property is leased to a cannabis tenant. Leases should include a clause allowing termination if those risks materialize. More broadly, without a properly drafted lease, landlords may face liability, nuisance claims, or even enforcement actions. We help protect both property owners and tenants by addressing these risks upfront
Contact Seligson Law About Cannabis Real Estate & Land Use Issues
In New York, real estate for cannabis businesses is a complex legal and political challenge. We understand the regulations, timelines, and key stakeholders. Let’s collaborate to advance your project. Contact us today to get started.
