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Austin, TX
Cannabidiol (more commonly known as CBD) is not marijuana! It is oil extracted from the hemp plant that is legal in Colorado and the United States. If you haven't already, you will start seeing CBD-infused drinks, food, soaps and lotions - and many other applications. In part because of the stigmas legalized marijuana has created but also because of a recently-passed farm bill, there are several issues to look out for before starting your real estate search -
1. Extracting CBD will be looked at differently than producing a product with CBD oil extracted at a different location. The former will draw higher scrutiny from the applicable municipality and may not be allowed in certain jurisdictions.
2. Get approval from the city for the use at a certain address prior to signing a lease. This written approval is often called a Zoning Verification Letter.
3. Many landlords do not want to lease to CBD tenants for the same reasons they do not lease to marijuana tenants - this is because of their misunderstanding of what CBD is. Proactively educating the landlord on the subject can make a world of difference. For investors considering the purchase of a buildnig with a CBD tenant, scrutinizing what processes occur on site and what exactly the lease allows the tenant to do on site are of paramount importance. Be prepared to educate your lender about CBD and how it differs from marijuana.
For investors considering the purchase of a building with a CBD tenant, scrutinizing what processes occur on site and what exactly the lease allows the tenant to do on site are of paramount importance. Be prepared to educate your lender about CBD and how it differs from marijuana.
Contact Clay Brown 720-707-1541 cbrown@rec-colorado.com
Cannabidiol (more commonly known as CBD) is not marijuana! It is oil extracted from the hemp plant that is legal in Colorado and the United States. If you haven't already, you will start seeing CBD-infused drinks, food, soaps and lotions - and many other applications. In part because of the stigmas legalized marijuana has created but also because of a recently-passed farm bill, there are several issues to look out for before starting your real estate search -
1. Extracting CBD will be looked at differently than producing a product with CBD oil extracted at a different location. The former will draw higher scrutiny from the applicable municipality and may not be allowed in certain jurisdictions.
2. Get approval from the city for the use at a certain address prior to signing a lease. This written approval is often called a Zoning Verification Letter.
3. Many landlords do not want to lease to CBD tenants for the same reasons they do not lease to marijuana tenants - this is because of their misunderstanding of what CBD is. Proactively educating the landlord on the subject can make a world of difference. For investors considering the purchase of a buildnig with a CBD tenant, scrutinizing what processes occur on site and what exactly the lease allows the tenant to do on site are of paramount importance. Be prepared to educate your lender about CBD and how it differs from marijuana.
For investors considering the purchase of a building with a CBD tenant, scrutinizing what processes occur on site and what exactly the lease allows the tenant to do on site are of paramount importance. Be prepared to educate your lender about CBD and how it differs from marijuana.
Contact Clay Brown 720-707-1541 cbrown@rec-colorado.com
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