January 2025 Newsletter
Welcome to the First Edition of the CannaMLS Newsletter!
Thank you for being a valued subscriber! We're thrilled with the incredible feedback we've received since relaunching CannaMLS and are excited to keep improving and innovating the platform for you. This monthly newsletter will bring you relevant industry updates, insights on market trends, and tips to help you maximize CannaMLS for your specific needs. Whether you're looking to buy, sell, or partner, we're here to help streamline your experience. Stay tuned for expert advice and the latest opportunities from across the country!
Did You Know?
In 2024, the US cannabis industry generated approximately $31.2 billion in sales, resulting in over $4 billion in tax revenue. Below are the top adult use cannabis markets in the US by sales volume. CannaMLS has hundreds of dispensaries, manufacturing labs, and cultivation facilities for sale across these high-volume states - find yours today!
| Market | Annual AU Sales | CannaMLS Catalog |
|---|---|---|
| California | $4.72 Billion | View CA Listings |
| Michigan | $3.32 Billion | View MI Listings |
| Illinois | $1.99 Billion | View IL Listings |
| Massachusetts | $1.79 Billion | View MA Listings |
| Colorado | $1.41 Billion | View CO Listings |
Sources:
Industry News
The top stories this month from key markets:
- State regulators have announced plans to more than double the number of licensed cannabis stores in New York, increasing from 275 to over 625 in 2025.
- Sales in 2025 are projected to surpass $1.5 billion, building on the previous year's $840 million.
- Efforts to curb the illicit market will include increased enforcement and the closure of illegal stores.
- Industry Growth: At least one licensed cannabis business now operates in every county.
- Diversity & Equity: 47% of licenses were awarded to minority-owned businesses, 44% to women or disabled veteran-owned entities, and 17% to Black-owned businesses.
- New Opportunitiees: The NJ-CRC announced that it will begin accepting applications for cannabis consumption area endorsements on January 2, 2025.
- Key drivers include strong medical cannabis demand (100,000+ patients), a growing number of dispensaries (300+ statewide), and a booming cannabis tourism sector, particularly from Texas.
- Regulatory improvements, such as streamlined licensing and expanded social equity programs, are fostering business growth and diversity.
- The state's low taxes and market-friendly policies make it an attractive hub for cannabis entrepreneurs.
CannaMLS Features to Know
Our Basic Search feature allows you to filter listings by state, license type, and price, for free! Want more filters? Upgrade your account to access our Advanced Search, which allows you to filter listings by property size, ceiling height, revenue, and more!
PRO of the Month
Q: How has Michigan's cannabis real estate market evolved since adult-use legalization in 2018?
A: The market has grown rapidly since its legalization and has become heavily competitive. Demand for properties suitable for cultivation (indoor and outdoor), processing, and retail has increased significantly. Many industrial, retail, and agricultural properties were repurposed for cannabis operations, and property values in cannabis “Green Zone” areas rose. The market has also seen challenges, like oversupply, price compression, and regulations. We expect a large amount of consolidation in 2025 and the strong operators will survive in this opportunistic buyer's market.
Q: What regions in Michigan currently offer the most opportunity for cannabis businesses to acquire properties, and why?
A: Regions in Michigan like Detroit, Ann Arbor, and Bay City, offer great opportunities for cannabis businesses due to favorable zoning, high demand, and established markets. Border town markets like New Buffalo, Monroe, Ironwood, and Menominee are the hottest markets in the state because of proximity to border states that aren't as Recreational friendly, supportive local governments, and less competition. These areas often balance affordability with access to growing consumer bases.
Q: What advantages does Michigan offer in terms of operational costs, licensing fees, or taxes compared to other established markets like California or Illinois?
A: Michigan offers key advantages, including lower licensing fees, reduced operational costs (particularly in smaller, rural areas), lower taxes, and a rapidly growing market. In contrast, California's early start has led to an overregulated market and limited demand of out-of-state interested operators. Illinois, especially Chicago, experiences strong demand and high sales but operates under a limited licensing structure. Additionally, Illinois faces challenges like supply shortages and high operational costs, impacting the market's accessibility and profitability.
Q: What trends are you seeing in cannabis real estate pricing for cultivation and dispensary facilities in Michigan?
A: Prices for retail, industrial, and agricultural properties have leveled off after early spikes. Retail properties in high-traffic areas, especially in cities like the border towns or heavily populated markets, remain competitive and expensive. Overall, prime, turnkey locations still hold strong value, but there are plenty of value-add buys with low performing and poorly managed operations for more suitable buyers to take over at below cost pricing. Industrial properties with existing infrastructure that are considered “turnkey” are being taken over at below cost pricing as well. Others with ample HVAC systems and high amounts of power, are back to being sold at traditional prices to traditional non-cannabis users. Outdoor cultivation and Green Houses properties are still in high demand for operators in the processing space, and are similarly following the same pricing trends.
Q: What factors most influence the valuation of cannabis properties in Michigan—location, licenses, or facility buildout?
A: The valuation of cannabis properties in Michigan is primarily influenced by location, licenses, sales, and turnkey facilities. Regarding retail, high-traffic and densely populated areas significantly boost property values due to increased visibility and access to consumers. Properties with existing cannabis licenses are highly sought after as they streamline the speed-to-market process. Turnkey properties with specialized infrastructure and systems are becoming increasingly valuable for cost savings as well. Lastly, strong consumer demand in the region further drives property valuations.
Q: What advice would you give to a cannabis entrepreneur looking to secure a property for their business in Michigan's current market?
A: Michigan's cannabis market is attractive to in-state and out-of-state companies because, believe it or not, we are still in the early innings, which offers significant opportunities for growth and expansion. As a relatively new market, it is ideal for operators looking to establish themselves with the opportunity for rapid expansion and capture market share. Research zoning and compliance laws with an attorney/lobbyist, prioritize location, consider turnkey options, stay budget-conscious, and consult with experienced cannabis brokers at C3 CRE to take advantage of our strong network and deal flow.
Q: Are there specific buyer incentives or financing structures you recommend to close deals more efficiently in this market?
A: Seller financing is a strong option since traditional lenders often avoid cannabis-related deals and cannabis lenders are more expensive and restrictive in their underwriting process. The seller-financed structure offers lower upfront costs, including lease-to-own structures or deferred payments, and can attract buyers who want to get operational with a low barrier to entry. Flexible terms, like interest-only periods or extended payment plans, can further ease the burden on buyers navigating strict regulations and cash-heavy operations. Joint ventures or profit-sharing agreements can also help close deals efficiently while reducing financial risk for both parties.
Q: What differentiates your approach to selling cannabis facilities from other brokers in Michigan?
A: What sets our approach apart from other brokers in Michigan is our extensive experience and deep understanding of the state's cannabis laws and zoning regulations. We leverage a vast network of entrepreneurs, investors, and industry professionals to connect clients with the right opportunities. By combining traditional and digital marketing strategies, we ensure maximum exposure for each property through listing website platforms, email blasts, social media, press releases, and much more. Most importantly, we operate with integrity and ethics, building trust and delivering results for our clients.
Q: How do you identify and connect with qualified buyers, particularly those from out of state or new to the Michigan market?
A: Our team is actively working on transactions all over the country, not just in Michigan, which allows us to identify and connect with qualified buyers by actively building relationships and expanding our network. Our team regularly attends industry conferences, sponsors events, and engages in strategic networking to connect with potential buyers, both locally and out of state. Over the past decade, we've built a strong reputation, with many of our clients coming from referrals and leads gained through these efforts. To maintain and nurture these relationships, we leverage dozens of listing website platforms, social media, targeted marketing strategies, and personalized email campaigns, ensuring we stay top-of-mind with buyers entering the Michigan market and beyond.
Q: What marketing strategies or platforms have proven most effective in attracting buyers for cannabis properties in Michigan?
A: AI has revolutionized our marketing efforts, helping us optimize strategies and reach the right audience. We also utilize digital advertising and specialized property listings to maximize exposure. Our team sends out consistent email campaigns, often weekly or even daily, ensuring we stay top of mind with potential buyers. Additionally, we leverage social media platforms, supported by an in-house team dedicated to creating high-quality, engaging content. These combined efforts build credibility, attract attention, and drive results.
Advertise with Us
Expand your reach in the cannabis industry through an advertising partnership with CannaMLS! Whether you're an attorney, accountant, supplier, or ancillary service provider, advertising with CannaMLS will help you reach thousands of cannabis business professionals and decision makers. Gain exposure and credibility while showcasing your business on our unique industry-trusted platform.