Leech Tishman Partner Michael Sampson to Speak at “Leasing to a Cannabis-Related Business” Webinar

Leech Tishman Partner Michael Sampson will join attorneys Jonathan Bench and Christopher Palmese for a Strafford Publishing CLE webinar entitled, “Leasing to a Cannabis-Related Business: Banking, Permitting, Zoning, Rent, Indemnification, and Insurance.” Mike is a member of the Litigation Practice Group. He is the leader of Leech Tishman’s Insurance Coverage Group and also Co-Leader of the Cannabis Group.

This CLE webinar will advise counsel on how to best prepare commercial leases for the growing number of property owners seeking to lease to a cannabis-related business as this market grows as legalization and decriminalization spread. The panel will discuss common issues that can arise and need to be addressed–not only specific questions related to computation of rent but also banking restrictions, permits and zoning, and insurance and related risk management.

Description:

With marijuana use legalized/decriminalized in a majority of the U.S., a growing number of commercial property owners must determine whether to lease to a cannabis-related business. State regulations legalizing/decriminalizing hemp and recreational and medical marijuana, as well as conflicting federal laws, require real estate attorneys to consider a variety of complex rules to effectively draft or modify commercial leases when a tenant is a cannabis-related business.

The unique challenges inherent in leasing to cannabis-related businesses require counsel to re-evaluate standard commercial lease terms and prepare to amend terms such as computation of rent, licensing, zoning, permitted use of the premises, compliance with laws, inspection rights, assignment, and subletting.

Additionally, landlords contemplating such a leased arrangement must expect to handle the legal consequences if the tenant operates primarily on a cash-basis or if the landlord’s bank terminates a relationship due to proximity to the connection to cannabis-based businesses. Landlord’s counsel should anticipate that such tenants will face difficulties in acquiring and maintaining standard insurance coverages and develop strategies to minimize these and associated risks.

Listen as our panel discusses federal and state law challenges in leasing to cannabis-related businesses in light of recent laws legalizing/decriminalizing medical and recreational marijuana and hemp/CBD products. The panel will address the practical considerations counsel should present to a commercial property owner looking to lease to a cannabis-related tenant and the necessary alterations to standard leases that will be necessary to ensure security in the relationship moving forward.

Outline:

• Overview of state laws related to leasing to cannabis-related businesses
• Standard lease provisions to address
• Computation of rent
• Licensing
• Zoning
• Permitted use
• Compliance with laws
• Inspection right
• Assignment and subletting
• Additional concerns
• Banking
• Insurance coverage
• Practical considerations

Benefits:

The panel will review these and other key items:

• The status of state landlord-tenant laws associated with cannabis-related businesses
• Drafting and updating standard lease terms that are impacted by the cannabis industry
• Developing a comprehensive plan to address specific issues related to cannabis-related businesses