The big news in the cannabis industry this year is that New York has legalized marijuana for recreational use, making it the 15th state to do so. It likely won't be until sometime next year that recreational sales commence, but for investors, it's not too early to start thinking about which companies will capitalize on what's sure to be the next hot market for the industry. 

Real estate is one of the more difficult aspects of the cannabis industry. Securing a license is tough but getting your location is even tougher. Each state has different regulations and restrictions, which combined with unique real estate markets makes finding and securing property essential. It’s an expensive endeavor and one in which traditional mortgages aren’t typically an option. 

This presentation will focus on the New England and New York area cannabis real estate markets. It will cover the following states: Maine, Vermont, New Hampshire, Connecticut, Massachusetts, New York, New Jersey, and Pennsylvania. 

Legal marijuana is coming to New York and hemp farmer Samir Mahadin sees it as a potential lifeline.

Farmers dealing with depressed prices for plants that produce CBD are eager to take part in a statewide marijuana market expected to generate billions of dollars a year once retail sales start.

They already know how to grow and process cannabis plants, since hemp is essentially the same plant with lower levels of THC, marijuana's active ingredient.

Now they're waiting on rules that will allow them to switch seeds.

Despite being half the size of the legal cannabis market in California, New York is poised to impact the larger industry and culture beyond its state lines and U.S. borders.

Why it matters: Even as cannabis is still simultaneously illegal at a federal level and only somewhat legal in 42 states, New York’s unique global identity and mix of industries will enable changes in perception and business operations, experts say.

The rise of the East Coast cannabis market gained another foothold in late March 2021 when New York became the most recent state to legalize adult use cannabis, joining ranks with other Atlantic stalwarts, including New Jersey, Maine, Massachusetts, Vermont, Virginia and Washington, D.C.

As many states are doing, New York fully embraced the concept of social and economic equity by setting a target goal of 50% of licenses issued to social and economic equity applicants.

After years of fits and starts, New York finally legalized adult-use cannabis and expanded its previously restrictive medical cannabis program. As the nation’s third largest economy and fourth most populous state, New York has the opportunity to set the gold standard for state cannabis industries.

Cash-strapped governments around the country have found a silver lining in the pandemic-caused loss of tax revenue. Legalized marijuana has provided millions to state and local governments - in some cases, millions more than anticipated.

The ability to raise tax dollars has been a selling point for marijuana legalization from the beginning. Long before the state legislature approved adult-use sales, Illinois politicians hoped marijuana could help the state pay off some of its massive debt. Other states, such as Colorado, have used sales tax dollars to fund schools and public improvement projects and programs.

In the 50 years since President Richard Nixon initiated the war on drugs, politicians of both major parties have endorsed aggressive police tactics and harsh punishments to combat substance abuse, and minority communities have disproportionately suffered. Black Americans are several times more likely than whites to be arrested for low-level marijuana offenses, despite comparable usage rates.

Advocates are calling New York’s legal marijuana program the best in the nation. One called it a watershed and a new era for marijuana justice, after hard work and long odds. 

Years of wrangling and tense negotiations finally ended in victory when adult use marijuana was finally legalized on March 31, 2021.

How Great is New York’s New Legal Cannabis Program? 

Let me count the ways.

First of all, possession by adults of up to three ounces of cannabis and 24 grams of concentrate is legal, effective immediately.