May 16, 2019
By Dennis Kaiser
As CBD and cannabis-related stores become legalized, shopping centers are faced with a multitude of decisions. Recently, Metro Commercial surveyed more than 13,000 industry professionals to get their opinions on whether or not CBD stores should be a “permitted use” in shopping centers. Jim Savard, EVP of Leasing & Management at Metro (pictured), offers insights on the results of its recent CBD survey in our latest 3 CRE Q&A.
Q: Are retailers generally more willing of stores selling cannabis? Can you provide some data to back this point up?
A: Yes, the study shows that retailers are generally open to stores selling cannabis and CBD products, with approximately 70% responding that they do believe retailers selling cannabis products – cannabis stores, medical marijuana dispensaries, cannabis cafés – should be allowed in shopping centers located in states where the sale of marijuana products are legal and would support their inclusion. Not surprisingly, the legality of cannabis where the store is located is a large determining factor for acceptance across the board. Additionally, the physical appearance of the cannabis retailer plays a big part in growing acceptance.
Q: Were respondents more accepting of CBD and cannabis retailers rather than vape stores?
A: Yes, overall respondents are more accepting of CBD and cannabis retailers as a permissible use in shopping centers over vape shops. While owners are equally supportive of both at almost 70%, approximately 75% of brokers support vape shops as a permissible use, versus 85% supporting CBD stores; just under 60% of retailers support vape shops versus almost 80% supporting CBD stores; and 75% of attorneys support vape shops versus 80% supporting CBD stores as a permissible use. The physical appearance, experience and “first-class” nature of the vape shop store design will help vape shop owners change public perception and garner more acceptance in traditional shopping center formats.
Q: Do retailers have a policy against leasing to a retailer who sells cannabis/CBD products?
A: Almost 80% of retailers responded that there is not a policy against a property owner leasing to a retailer who sells cannabis-related products in a state where the use and sale of marijuana are fully legal, or where medical marijuana dispensaries are legal. Almost 60% of owners said the same, while approximately 20% were undecided. The biggest discrepancy between groups comes with attorneys – 50% responded that there is, in fact, a policy against this, while 25% were undecided. Though there might not be a specific exclusion, many leases contain clauses restricting owners from leasing to “head shops” or drug paraphernalia stores and other noxious uses inconsistent with a Class A shopping center. The debate will continue whether a store selling cannabis products falls under that category.
For comments, questions or concerns, please contact Dennis Kaiser