As flourishing cannabis industry expands to pricier, high-profile sites, social equity applicants left behind

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As cannabis businesses grow and move to fancier, pricier locations, social equity applicants could be left behind.

When medical marijuana sales began in Illinois in 2014, cannabis firms typically chose unobtrusive buildings, sometimes hidden away in industrial parks, to sell the controversial product.

Social equity hopefuls keep pushing forward, sometimes leasing or purchasing properties and completing store designs, all without being able to operate and bring in revenue. But the expense of securing real estate for a cannabis-focused business, combined with the industry push toward fancier, pricier spaces, threatens to leave social equity applicants behind.

“If you go into a dark alley, you feel as if you’re doing something shady, so we want to be next to a Whole Foods,” said Cresco Labs Executive Vice President Chima Enyia. A spokesperson for PTS said the company can’t divulge financial details about the firm or its properties. Doing that without steady cash flow isn’t easy, Jackson said. Getting a full-scale operation up and running costs millions, so there are always bills to pay. The company pays rent on a 50,000-square-foot industrial property in suburban Broadview where Jackson plans to grow and package cannabis and process oil from the plants, among other activities.“We’ve been paying $26,000 a month for a couple of years now in rent since we didn’t have enough money to buy the building outright,” said Jackson.

 

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wow.... I bet no one saw this happening..... gee. shocking.

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