October 2025 Newsletter

Highlights from This Month - New Mexico sales on pace to exceed $2B in 2025. New Mexico’s cannabis market is on track to surpass $2 billion in total sales by the end of 2025, just three years after launching adult-use sales. The milestone reflects strong and sustained consumer demand, underscoring the state’s position as one of the fastest-growing cannabis markets in the nation. - Consumption lounges expand in multiple states. Cities in Nevada, California, and Colorado continue approving venues for legal on–site cannabis use, which opens new opportunities for retail and hospitality properties that meet zoning and municipal standards. - Delaware sales up 1.7x after adult use launch. Delaware’s cannabis market surged following the launch of adult-use sales on August 1, 2025, with total Q3 sales climbing 70%+ quarter-over-quarter. Early data points to strong consumer demand, healthy pricing, and limited competition as new licenses roll out. - Michigan Eyes Regulatory Tweaks in Response to Tax Hike. After backlash to Michigan’s proposed 24% cannabis tax, lawmakers are pivoting toward license caps and hemp regulation, aiming to stabilize prices, curb unregulated hemp sales, and restore predictability for operators and investors - Industry news to know. Maryland seeks suitable industrial or retail property to be site of nation’s first state-run cannabis incubator. Kentucky reports 3 cultivators actively growing and 46 of 48 dispensaries with secured locations, with some openings expected by year end. Rhode Island opens applications for 24 new retail licenses with submissions due December 29, 2025 and awards projected for May 2026 across 6 zones. - The Top Questions Serious Buyers Will Ask You. In this blog post, CannaMLS CEO Jade Green breaks down what information and documentation you need to prepare for answering the most critical buyer diligence questions [Read the guide](https://cannamls.com/blog/real-estate/2025/the-top-questions-serious-buyers-will-ask-you_6) or [add your listing](https://cannamls.com/profile/listings/new_listing). New Mexico Cannabis Sales to Surge Past $2B Milestone New Mexico’s cannabis market is on track to surpass $2 billion in total sales by the end of 2025, just three years after launching adult-use sales in April 2022. According to the state’s Regulation and Licensing Department, combined medical and recreational transactions have reached $1.93 billion to date, with adult-use sales now accounting for over 77% of monthly revenue. Despite a modest dip from August to September, the market remains steady, generating more than $142 million in tax revenue this summer alone. State officials credit the industry’s growth for boosting local economies and supporting small-town infrastructure through excise tax allocations. New Mexico is among the faster-growing cannabis markets in the U.S., especially given its recent adult-use launch and strong year-over-year gains. While it may not (yet) rival the largest states in absolute dollar growth, its high growth rate from a young market base and aggressive licensing expansion make it a standout in the “growth potential” category. Source: [Ganjapreneur: “Cannabis Sales in New Mexico On Pace to Exceed $2 B This Year”](https://ganjapreneur.com/cannabis-sales-in-new-mexico-on-pace-to-exceed-2b-this-year/) U.S. Cannabis Lounges on the Rise with New Real Estate and License Opportunities What is happening: Cannabis consumption lounges, once popular mainly in Amsterdam, are expanding fast across the United States. Cities in Nevada, California, and Colorado are approving venues that let adults legally consume cannabis in social settings, marking a turning point for hospitality and retail integration. Why it matters: This trend is creating fresh demand for retail and entertainment real estate suitable for lounge conversion. Property owners, developers, and license holders are seeing new use cases for underperforming spaces, especially in tourist and downtown corridors. With U.S. cannabis sales topping $30B annually, lounge venues are emerging as the next frontier for on-site experiences. What to watch: States are moving toward formal lounge licensing, and early operators can secure prime locations ahead of competitors. Watch for updates from regulators in Nevada, Illinois, and New York as frameworks expand in 2026. Action for users: Explore listings that can be adapted for cannabis lounge use. Search the CannaMLS catalog for properties in states where consumption spaces are advancing and connect directly with listing owners. Source: [TravelHost: Forget Amsterdam, cannabis lounges are becoming more popular in the U.S.](https://www.yahoo.com/lifestyle/articles/forget-amsterdam-cannabis-lounges-becoming-120000466.html) Delaware: Small State, Big Momentum After Adult-Use Launch Delaware’s newly launched adult-use cannabis market is showing strong early traction since recreational sales began on August 1, 2025. According to state data, total cannabis sales in Q3 2025 reached $17.2 million, up from $10 million the prior quarter — a 1.7× quarter-over-quarter increase even after accounting for typical summer seasonality. Adult-use sales contributed $4.49 million in August and $3.67 million in September, signaling sustained consumer demand as new retail outlets come online. The state currently reports 14 retail stores licensed and 8 cultivators (seven tier-1 and one tier-2), alongside 6 manufacturers and 4 producer-processors. Delaware’s unique regulatory structure prohibits hemp-derived THC, concentrating demand within its licensed channels. Product mix is evolving quickly: flower accounts for roughly 54% of sales, with vape products at 30% and edibles at 13%. Recreational consumers pay a 15% excise tax, while medical patients remain exempt from sales tax. The market outlook remains bullish. Analysts project Delaware’s total cannabis market could expand by at least 1.5× again by Q4, driven by ongoing dispensary openings and tourism-related demand. Early results suggest Delaware may follow the strong post-launch patterns seen in Maryland and Missouri — with rapid per-store growth and strong wholesale pricing stability — making it one of the most attractive emerging East Coast investment markets heading into 2026. Source: [ZUANIC & ASSOCIATES Report](https://zuanic.worldflowconnect.net/document/open/37ec3464-5bfb-43eb-bff2-45a92073ea4f/251023%20MRMD%20DE.pdf/7612cdcd-8125-4e71-a266-72684a55f9ac) Michigan Eyes Regulatory Tweaks Amid Backlash to 24% Pot Tax Following public pushback to Michigan’s proposed 24% wholesale cannabis tax, state lawmakers are weighing reforms to ease regulatory strain on the industry. The Senate Regulatory Affairs Committee reviewed bills that would cap retail and wholesale licenses based on population—aiming to stabilize oversupply and falling prices—and create a new framework for intoxicating hemp products like Delta-8. The Cannabis Regulatory Agency and industry leaders voiced strong support for curbing unregulated hemp sales and improving market predictability, while local officials urged more enforcement authority. If passed, these changes could tighten licensing, bring hemp products under testing and labeling rules, and offer long-term market stability for operators and investors alike Why this is positive: A smarter license pace can curb oversaturation and steady pricing. Clear rules for hemp reduce gray channel pressure on licensed retailers and labs, and support consumer safety. Together these moves point to stronger planning for cities and more stable cash flow for compliant businesses. Source: [Michigan Advance: Amid outcry against 24 percent tax, Senate panel reviews regulatory tweaks for the cannabis industry](https://michiganadvance.com/2025/10/16/amid-outcry-against-24-pot-tax-michigan-senate-panel-eyes-regulatory-tweaks-for-cannabis-industry/) Industry News Regulatory changes, important milestones, and real estate trends across key cannabis markets [Maryland Seeks Property for Nation’s First State-Run Cannabis Incubator](https://cannabis.maryland.gov/Documents/2025_PDF_Files/News%20Release/Maryland%20Cannabis%20Administration%20with%20Maryland%20Economic%20Development%20Corporation%20Open%20Application%20for%20Site%20Solicitation%20for%20Maryland%20Cannabis%20Incubator_10.7.pdf) - The Maryland Cannabis Administration (MCA) and Maryland Economic Development Corporation (MEDCO) have opened applications for sites to host the Maryland Cannabis Incubator Project—the nation’s first state-run incubator program designed to support social-equity licensees and micro-businesses in the cannabis industry. - The initiative calls for underutilized commercial and retail properties—including enclosed malls, big-box stores, and warehouse spaces under 30,000 sq ft with loading docks and commercial kitchens—to be repurposed into shared-use cannabis processing and storage facilities. The incubator will provide secure storage for micro-dispensaries and shared kitchen equipment for micro-processors, helping new operators lower barriers to entry without the high costs of building out their own facilities. - For property owners and developers, this program represents a rare, state-backed demand driver for industrial and flex real estate—particularly in secondary markets where vacant or aging retail and warehouse inventory could see new life as compliant cannabis infrastructure. The move underscores Maryland’s growing commitment to sustainable market expansion and signals a positive outlook for cannabis-related commercial real estate statewide. - The application deadline is November 6, 2025. Requests for applications and questions regarding the submission process should be directed to Sarah Horta, shorta@medco-corp.com [Read Full Article](https://cannabis.maryland.gov/Documents/2025_PDF_Files/News%20Release/Maryland%20Cannabis%20Administration%20with%20Maryland%20Economic%20Development%20Corporation%20Open%20Application%20for%20Site%20Solicitation%20for%20Maryland%20Cannabis%20Incubator_10.7.pdf) [Kentucky's Medical Cannabis Program Sees Significant Progress Towards Launch](https://www.mmjdaily.com/article/9777921/us-wait-to-buy-medical-marijuana-in-kentucky-continues-for-more-than-15-000-cardholders/) - Cultivation Underway: Kentucky's medical cannabis program is rapidly advancing, with three licensed cultivators actively growing medical cannabis. The first cultivation began on July 11, 2025, by Armory Kentucky, a Tier II cultivator in Mayfield. - Dispensary Locations Secured: Out of 48 planned dispensaries, 46 have secured their permanent locations, with the remaining two expected to be finalized by the end of 2025. The Post Dispensary in Beaver Dam is the first to receive full operational approval. - Anticipated Openings: Officials expect multiple dispensaries to be operational within the next month, with Governor Beshear anticipating openings before the end of the year. - Patient & Practitioner Engagement: Over 15,000 Kentuckians have been approved as medical cannabis cardholders, and 500 medical practitioners are certified to recommend medical cannabis. - Product Offerings & Restrictions: Dispensaries will offer tinctures, oils, vapes, edibles, and raw flower (no smoking). THC caps are set at 35% for raw cannabis, 10 mg per serving for edibles, and 70% for concentrates. - Zoning Requirements: Dispensary locations must be more than 1,000 feet from elementary/secondary schools and daycare centers, with potential for additional local government restrictions. A zoning tool is available for assistance. Read Full Article [Rhode Island Opens Applications for 24 New Retail Cannabis Licenses](https://www.golocalprov.com/politics/ahern-quits-as-chair-of-cannabis-control-commission-eyeing-run-for-ag) - Application Period Open: Rhode Island has officially launched the application process for 24 new adult-use cannabis retail licenses. - Key Dates: Prospective applicants must submit their complete applications by 4:00 p.m. on December 29, 2025. The final awarding of permits via a hybrid lottery system is projected for May 2026. - License Distribution: The 24 licenses are divided across six geographic zones, with four licenses per zone. One license in each zone is reserved for a CCC-certified Social Equity applicant, another for a Rhode Island Workers' Cooperative applicant, and the remaining two for General applicants. - Requirements: Applicants must provide detailed documentation, including financial arrangements, operational plans, and proof of control over a suitable retail cannabis location with municipal approval. - Opt-Out Municipalities: Several municipalities, including Smithfield, Scituate, East Greenwich, Barrington, Jamestown, and Little Compton, have opted out of hosting retail cannabis businesses. Read Full Article [The Top Questions Serious Buyers Will Ask You](https://cannamls.com/blog/real-estate/2025/the-top-questions-serious-buyers-will-ask-you_6) In our latest blog post, CannaMLS CEO Jade Green breaks down the ten critical questions every serious cannabis buyer will ask, and how well-prepared sellers can use those answers to protect valuation and close faster. As Jade explains, today’s market rewards preparation. Buyers are no longer paying for potential, they’re paying for certainty. Deals now hinge on how organized, compliant, and transparent a seller can be during diligence. The difference between a premium price and a deal that falls apart often comes down to preparation. Here are the top questions serious buyers will ask: - Can the license transfer, and what is the entitlement risk? - Is the facility equipped to perform under its intended use? - Will the lease survive the transaction? - Is compliance provable? - Do the financials check out? - What is the tax posture under Section 280E? - What risks transfer with the business? - How will inventory and working capital be handled? - How was the price determined? - What is the roadmap to closing? Each question highlights a key diligence checkpoint—from license transferability and facility readiness to reconciled financials, compliance records, and lease stability. The most successful sellers arrive at the table with clean documentation, credible valuations, and clear transaction timelines.