Securing a Lease Property for Cannabis Businesses

Since choosing a lease property for a cannabis business is one of the most involved aspects of business start up, cannabis companies must recognize that the property’s ability to be secured is just as important as the property’s location. No matter the address, cannabis business owners will want to research the property’s crime history and implement layers of security to deter against any foreseeable risks, such as robberies, loitering, or shoplifting.

Things to Consider When Choosing a Lease Property

Perhaps the first significant hurdle for cannabis businesses to overcome is choosing a location where landlords permit cannabis activity. Depending on state and city laws, zoning limitations may also prevent cannabis businesses from being located within 300-1000 feet from certain areas, such as schools, daycares, and parks — but this varies depending on the jurisdiction. Regardless, lease properties where where cannabis business are both legally permitted and accepted by landlords can be scarce.

The surrounding area is another crucial element in selecting the best possible area to lease property for a cannabis business. Not only is it preferable to pick a cannabis lease property in a low-crime and low-risk area, but cannabis operators will want to look at the surrounding businesses and see if they provide a safe and uplifting environment.

Important considerations should include:

Are neighboring properties well-kept and inviting?
Is there visible, positive social activity and foot traffic from customers or residents?
What types of recurring crime occurs in the area?
What is the response time for ambulances, police, and fire stations?

Depending on the identified challenges at the property, differing security measures may be implemented to offset any specified risks.

Securing a Leased Facility for a Cannabis Business

Even if the cannabis lease property is located in a low-crime area, there is still potential for internal and external threats to the business. An example of an internal threat can be employee theft, and external threats include robberies and burglaries. By contracting with security professionals, cannabis operators can implement security measures to mitigate these threats — starting with the design of the building.

Design of the Building

Prospective cannabis operators should consider the layout of the permanent building components of the lease property and compare them to the needs of the cannabis business, taking into account any local and state regulations. Each room should be thoughtfully planned out to coincide with the existing layout, levels of access, and required security for the purpose of the area.

A secured storage room is a prime example of a type of security infrastructure that is necessary for cannabis businesses that is not present in most other establishments. Through state and federal regulations, vaults and storerooms containing valuable items (cash, cannabis product, records, equipment, etc.) must follow strict guidelines concerning the materials and design of rooms and their reinforcing security attributes. Additionally, the surrounding perimeter of the building should be reinforced with additional security measures as well. Alarm systems, video surveillance, bollards, security glass, and sufficient lighting are all things that should be considered for a building’s exterior and its surrounding area.

Most existing retail establishments will not have the security infrastructure required for a business as regulated as cannabis and tailoring should be expected, but utilizing parts of the existing structure can help to keep costs low.

How Can Sapphire Risk Help?

Tony Gallo and the team of experts and consultants at Sapphire Risk Advisory Group have worked to secure medical marijuana and recreational cannabis businesses in 36 states. Follow us on social media to stay up to date with more security best practices and cannabis industry updates!