The problem: using generic cannabis lease agreements Many people use lease templates they find online and never run into a problem. In particular, cannabis lease agreements can be a hotbed of hidden problems. Some of the most common — and seemingly innocuous — provisions in a standard lease agreement can be problematic for cannabis tenants and landlords. In buildings with multiple tenants, cannabis entities should consider their prospective neighbors, including the types of businesses and the lengths and terms of their leases. Corporate or real estate attorneys may be great at drafting leases, but they often don’t have experience navigating the types of issues that frequently arise in cannabis business leasing agreements.
The cannabis industry can be a minefield of potential legal, tax, and licensing issues. In particular, cannabis lease agreements can be a hotbed of hidden problems. Many operators have been forced out of business altogether over a dispute with their landlord over an actual or purported lease violation.
Some of the most common — and seemingly innocuous — provisions in a standard lease agreement can be problematic for cannabis tenants and landlords. Cannabis commercial space leases are inherently complex, and a template pulled off the internet will never achieve the appropriate levels of protection for either side.
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