Video: Zoned Properties' Bryan McLaren On Enhancing Real Estate Value In Cannabis

In view of the legal patchwork of regulations and restrictions governing the cannabis industry and it vast differences from state-to-state, finding and securing property for a cannabis business is not an easy task.

Zoned Properties ZDPY, a strategic real estate development firm, is one of the first publicly traded real estate companies to venture into the cannabis industry. These days, it’s busy keeping up with the growing demand for real estate services in the needy industry. As such, the company is focused on how to invest, develop and protect real estate projects for the burgeoning industry.

"We're trying to unlock the formula for how to spread cannabis real estate across this country, but in a really well-positioned investment way," Zoned Properties CEO Bryan McLaren said.

McLaren was a guest on Benzinga's Cannabis Insider show on Monday where he spoke with hosts Elliot Lane and Javier Hasse about how to enhance real estate value in the cannabis industry while mitigating its risks.

Focusing On Services Side

Instead of putting a substantial amount of real estate development capital where it has never existed before - like companies within the cannabis REIT sector - Zoned Properties seeks to unlock “the best practices to assist in making sure that money actually gets spent well," McLaren explained. 

"Growth opportunities for us as a company are certainly coming into the services side, where investors can take a different entry point into the market rather than a straight leaseback revenue from lease model," he added.

In December, Zoned announced the market launch of its collaboration with dispensary retail franchisor The Open Dør, which was co-founded by international franchisor Kathryn Blackwell and cannabis compliance expert Chelsea Mulligan.

The concept is aimed at helping cannabis license holders enter the market faster and more efficiently by simplifying the process.

In February, Arizona-based Zoned provided The Open Dør an additional $100,000 in investment capital.

The company is also working on data projects that utilize zoning and geographic information system GIS data.

By overlapping different data, the company seeks to "unlock an efficient and effective way for real estate owners and cannabis operators to figure out where those kinds of 'green zones' are,” McLaren said.

'Silent Battles'

And with nearly three-dozen U.S. states either legalizing cannabis or improving their existing programs, figuring out which ones are "green zones" comes down to the local level.

County municipal offices, planning boards, planning commissions and local representatives often decide how communities are being managed and regulated, McLaren explained.

"There's this non-standard potpourri of cannabis regulations in every city and town," he said.

Luckily, more traditional real estate and planning representatives are starting to get involved.

Either way, from an investor's perspective, it all comes down to whether "the permitting and the zoning fits with the local municipality."

Sustainability Is The Best Insurance

Zoned Properties also collaborates with various coalitions that focus on sustainability and provide business solutions.

While the expense of properly positioning a company is unavoidable, cannabis businesses seem to be managing.

"The great thing about cannabis is almost always the right approach to sustainable development," McLaren said.

Cannabis businesses are utilizing energy efficiency strategies as well as appropriate equipment and fixtures when expanding their infrastructure.

Designing and operating a facility with long-term operational goals is "the best insurance for your project," McLaren said.

Saving money is possible by decreasing OPEX and protecting CAPEX, he added.

Encuentra nuestro contenido en Español en El Planteo:

• Crema de Cannabis: El Analgésico que Estabas Esperando
• Marihuana para Dormir: Todo lo que Necesitas Saber