September 2025 Newsletter

• "Turnkey” buyers want a true plug-and-play facility. We dive into what turnkey really means, what serious buyers will expect to see, and how to maximize value when selling a move-in-ready asset.
• Challenges to watch for as Minnesota launches its cannabis market. Over 1,000 license applicants have received preliminary approval, giving them 18 months to become operational – but real estate and supply shortages will put new operators to the test.
• California rolls back its cannabis excise tax hike. In a rare move to help stabilize overburdened legal operators, the state is returning to a 15% excise tax, beginning in early October 2025 through at least June 2028.
• Market snapshots to watch. New York reports strong monthly sales and a growing licensed footprint. Connecticut set a new monthly record for adult use revenue. Delaware logged more than $7.3M in its first month of AU sales.
• Seller spotlight. How to choose the listing tier that fits your goals. Bronze is a smart start. Silver adds a photo carousel and PDF attachment. Gold secures top catalog placement for maximum reach. Compare tiers or add your listing today.

Turnkey is an underwriting test. Buyers want low risk and a clear path to close. To earn a premium, show that a new owner can step in and operate with no downtime and no surprise costs.“Turnkey” is an underwriting test; buyers want low risk and a clear path to close. To command a premium, show that a new owner can step in and operate with no downtime or unexpected costs.

Non negotiables

• Entitlements and licenses that transfer cleanly, with written proof from city and state.
• Lease terms that survive assignment, plus landlord consent in writing.
• Compliance history with recent inspections and zero open violations.
• Utility capacity that matches intended use: power, water, and HVAC, all with recent service records.

Data room essentials

• Zoning letters, permits, SOPs, insurance COIs, vendor and service contracts.
• Equipment list with serials, warranties, maintenance logs, and training docs.
• 3 to 12 months of operating metrics: revenue, COGS, labor, and utilities.
• Any incentives or liabilities, taxes, liens, litigation, all properly documented.

Ways to lift value

• Add a clear transition plan, staff training, vendor introductions, and offer to stay on for a short advisory period.
• Price to current sales comps and show math so buyers can underwrite efficiently.
• Request an earn out on top of the sale price so you get a bonus payment if the business hits certain milestones.

Source

 CannaMLS Blog What Buyers Are Really Looking for in a Turnkey Facility

Minnesota’s Office of Cannabis Management issued its first full cannabis business license in June 2025. Over 1,000 license applicants have received preliminary approval from the OCM, giving them 18 months to become operational and convert to full licenses. No property is required up front, and with a limited number of qualifying properties based on local zoning ordinances, many licensees are now racing to secure sites and obtain municipal approvals. Finding a qualified, well-located property is a challenge for most hopeful operators, which has led to bidding wars on green-zoned commercial sites statewide.

A full commercial market is expected to come online gradually. Early retail activity will begin in the coming months, with a broader ramp up expected through the first half of 2026. Unlike states with established medical markets that quickly transition to adult use, Minnesota must build its production supply chain from scratch. There are virtually no existing cultivators in Minnesota (outside of a few tribal operators), so early retailers will face product shortages until cultivation scales.

What this means for operators and investors:

• First movers with real estate and capital are best positioned.
• Local approvals will be a critical hurdle to watch.
• Vertical integration may buffer against supply shortages.

Source

Canna Law Blog: “Cannabis Licensing Moves Forward Across Minnesota,” published September 3, 2025

**What happened:**California approved relief that temporarily resets the cannabis excise rate to 15%, pausing an increase to 19% that took effect earlier this year. The goal is to help licensed operators that are facing tight margins and intense competition from the illicit market.

Timing matters.: the reduced rate begins in early October 2025 and is scheduled to run through mid-year 2028. State leaders framed the move as a bridge to stabilize licensed retailers and keep more sales in the regulated system while longer term fixes are considered.

What this means: retailers may win back price-sensitive consumers, brands get a little room on wholesale pricing, and landlords may see fewer distressed tenants. Some programs funded by cannabis taxes could feel budget pressure, so expect continued debate in Sacramento about revenue backfills and broader reform.

Action for operators: rrevisit pricing and promotions for the fourth quarter, re-engage lapsed customers, and model cash flow with the 15% rate through 2028. Watch for local policy shifts that could amplify or mute the state level change.

Sources

LAist: California’s marijuana industry gets a break under new law suspending tax hike

SFGATE: Law reduces excise rate from nineteen percent to 15% through June 30, 2028

New York Reaches $2 Billion in Sales with Record Monthly Figuress

• Record Monthly Sales: July 2025 set a new record with $161.6 million in sales, demonstrating significant month-over-month increases.
• Expanding Retail Footprint: The state now boasts 464 operational dispensaries, with 1,904 total licenses issued, 57% of which are allocated to social equity licensees.
• Impact of Enforcement: Regulatory efforts to combat the illicit market have resulted in a substantial boost for licensed businesses, with some areas seeing a 105% increase in sales at nearby legal shops.
• Future Outlook: Provisional licenses have been extended until December 31, 2026, signaling continued support for market expansion and stability.

Connecticut Sets New Monthly Record for Recreational Marijuana Sales

• Record-Breaking Sales: Connecticut's adult-use recreational marijuana market achieved a new monthly record in August, reaching $18.8 million in sales.
• Total Market Performance: Combined with medical marijuana sales, the state's total cannabis sales for August hit $24.7 million.
• Strong Market Growth: Year-to-date sales have now climbed to $185.8 million, indicating robust demand and a positive outlook for cannabis businesses and associated real estate ventures in the state

Delaware Adult-Use Cannabis Market Hits $7.3 Million in First Month

• Strong Launch: Delaware's adult-use cannabis market generated over $7.3 million in sales during its inaugural month in August 2025.
• Product Trends: Cannabis flower was the top seller, making up 55% of total sales.
• Market Growth: The Office of the Marijuana Commissioner has issued 79 conditional and 3 active licenses, with more expected. The state also plans to distribute Social Equity Financial Assistance (SEFA) grants to foster equitable growth.