Choosing the Best Cannabis Retail Location

Posted by haris morison on February 3rd, 2021

Legal requirements, license availability, and market demand vary from location to location, but marijuana shops looking for a great location have the following benefits:

The unbearable whiteness of weed Canada booming cannabis industry

Understand recent local market trends as well as regional trends.
Think creatively about finding poorly maintained places, especially for small players.
Carefully consider the potential strengths and weaknesses of buying and leasing.
Identify future markets before local government officials start writing regulations, then get involved early.

Think locally, not just locally

Michael Lord, Chief Operating Officer of LivWell Enlightened Health, a Colorado cannabis company, operates 22 clinics across the state, and potential cannabis store operators should be familiar with the area they plan to open. I give advice.

"Google Earth does not explicitly represent the true representation of boots on the ground," said the Lord. “Maybe a lot of people have (shops) in places they've never visited or places that look great on a map.

"It can go from street to street nearby ... and after all, I think companies should follow the communities in which they do business."

It's certainly important to know the local market going forward, but Stephanie Goodman, CEO of Bricks and Mortar Group, a Michigan-based cannabis broker, also recommends conducting regional market research in the area.

“You may think you have this beautiful place, and they only issue two licenses in the city, but next door is unlimited (licenses),” she said. "Knowing this, you can predict future sales."

Brian Mitchell, CEO of Los Angeles-based marijuana company Shryne Group, said he sees the greatest opportunities in the California area, where local cannabis stores are still scarce. More than 30 cities and counties in California voted in the November 2020 election for business initiatives that support cannabis, paving the way for new stores in several places.

"If we have 100,000 residents, we plan to allow two stores, and there are another 100,000 stores in the neighboring town, and there is no cannabis, so that's a really good opportunity."

Define your own niche

Seun Adedeji, founder and CEO of Elev8 Cannabis, which opened a single clinic in Oregon before expanding to Massachusetts, said small, low-capital businesses could benefit from the opening of a small town. I said I could. I said I could. think of.

Adedeji has concentrated the Massachusetts extension of Elev8 in border towns near New Hampshire, New York and Vermont. There, the purchase of real estate is cheaper than in the big cities.

"The great thing is that each of these small towns only grants two entertainment licenses due to licensing restrictions," said Adedezi. "So your value is still increasing."

Small towns may be attractive, but boundary strategies like Adededi work within cities too.

Erbn Green Cannabis Co., a small Canadian retailer that opened its first location in the highly competitive Toronto market in October, has found a location in the city's upper town.

It may not be as popular as the city center, but Chief Compliance Officer Farrell Miller said the location is close to two suburban services that have opted out of cannabis shop permits. Said. He said it would meet the demands of poor markets.

“A lot of customers live north of Route 401 (the nearby highway), but there isn't much activity north of Route 401. They have said we are closest to them. He gave me up, ”Miller said.

The second location for Erbn Green is Picton, Ontario. This is a small community with less competition for cannabis store licenses than in major cities such as Toronto and Ottawa.

"This town is really becoming known for its wineries and tourism," said Miller. "We finally see that cannabis suits them."

Buy or lease?

Elev8's Adedeji burned down when the landlord of the first store in Oregon refused to renew the lease and had to find a new place. As a result, Adededi supports retailers who buy real estate instead of leasing where possible.

“I think I have a 10-year lease with an additional 10-year option for anyone trying to get a lease option,” he said.

In Michigan, broker Goodman said the federal illegality of marijuana has contributed to landlords' reluctance to hire cannabis companies. She explained that ownership