A development site in Hamilton is on the market, with the potential to house nearly 75,000 square feet of industrial space and cannabis cultivation or manufacturing.
A cannabis manufacturer and cultivator has tapped DIGroup Architecture to plan and design a new 75,000-square-foot facility in Bridgeton.
Sales of recreational cannabis in New Jersey rose to more than $100 million in the third quarter, showing the potential of a market that launched less than eight months ago.
With licensing for recreational marijuana now underway in New Jersey, commercial real estate owners are seeing a real-time rush for spaces that will help launch the industry beyond the medicinal use market created more than a decade ago.
Sales of adult use recreational marijuana in New Jersey are slated to begin in less than a week after state officials approved the expansion of several existing medical dispensaries.
It is anticipated that state regulators will unveil the application process at any time within the next several weeks in order to commence the processing and issuance of recreational cannabis licenses in New Jersey. Thus, there is considerable excitement amongst real estate operators and potential cannabis businesses for the inevitable rapid and (likely) significant growth of the cannabis industry in New Jersey in the coming months and years. Notwithstanding such, as cannabis businesses will be highly regulated at both the state and local level (and remain illegal under federal law), it is critical that property owners and business owners fully evaluate the many regulatory, zoning, operational, and financing challenges associated with utilizing properties for cannabis uses.
A top real estate attorney with Greenbaum Rowe Smith & Davis LLP has joined the leadership of the New Jersey State Bar Association’s Cannabis Law Committee.
Adult use of cannabis is now legal in New Jersey, cementing a key piece of Gov. Phil Murphy’s agenda and paving the way for what could be an impactful industry for commercial real estate.
The current version of the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act, which was passed by the state Legislature on December 17, 2020, provides a framework for legalizing recreational cannabis in the state, including six different classes of licenses to be considered by those looking to enter the cannabis business marketplace. As we discussed in Part I in our series on cannabis, early identification of an ideal region and/or municipality for the proposed licensed premises is critical to success. However, there are a host of other factors and potential snags that an applicant must take into consideration before selecting a location.
Insiders say the prospect of legalized recreational marijuana could have substantial benefits for New Jersey’s commercial real estate market, even with a long list of risks and complexities.