How Will Cannabis Rescheduling Impact Commercial Real Estate
The Drug Enforcement Administration’s plan to reschedule cannabis from Schedule I to Schedule III under the Controlled Substances Act is expected to impact many aspects of the cannabis industry, such as advertising, taxes, research, and shipping. However its impact on the cannabis real estate sector could be particularly pronounced.
As a result of the rescheduling, research centers and foundations, as well as health institutions like hospitals and universities should now have more straightforward paths to conduct research on cannabis. Researchers of Schedule III-controlled substances generally have less regulatory and administrative hurdles, lower barriers and fees related to sourcing materials, and more potential fundraising sources.
Easing these hurdles could spark a wave of cannabis research, generating increased demand for research spaces at existing health and educational institutions as well as life science facilities. Existing research facilities for Schedule III substances provide a glimpse of what this burgeoning market could look like; these institutions already exist and are working with substances such as ketamine, steroids, and other codeine products. There are reasons to temper expectations though – the number of existing Schedule III-controlled substance research facilities in the United States appears limited. For that reason, it remains unclear whether an …