Since the legalization of cannabis in both Oregon and Washington State, the commercial real estate marketplace has changed in a number of ways. Prices for properties in areas zoned for cannabis growing and marketing have risen disproportionately in comparison to other real estate in the same general area. Many traditional lenders are unwilling or unable to provide CRE loans for cannabis-related businesses. Working with alternative lenders is a solid step toward acquiring the necessary funding for cannabis growing, processing and marketing operations in the states of Oregon and Washington.

Rules Regarding Cannabis Property Acquisitions

Both Oregon and Washington have established rules and regulations regarding the areas in which cannabis companies can operate. These rules apply to grow operations, manufacturing, marketing and retail sales of these products.
  • According to Oregon Measure 91, which was approved in 2014, recreational cannabis is legal within the state. Cities and counties, however, can prohibit cannabis-related businesses from operating within their borders and can set zoning restrictions that limit the allowable locations for Oregon cannabis-based businesses. This can lead to some confusion about where cannabis can be legally sold, manufactured or grown. Contacting the local county or city authorities to request information about the acceptable areas in which your planned business can be established is the best way to determine whether a particular parcel of land is suited to your planned use.


  • Initiative Measure No. 502 was passed in 2012 and established a regulatory framework for growing, processing and retailing cannabis products within the state of Washington. While municipal areas and counties can object to the issuance of licenses for cannabis businesses, the final decision on these licenses remains with the Washington State Liquor and Cannabis Board. In general, however, your cannabis-related business must be located at least 1,000 feet from playgrounds, childcare centers, elementary and secondary schools, libraries, public parks, recreation centers, gaming arcades, and public transit centers.
Prices continue to rise for areas in which cannabis industry activities are allowed. Making your move now could allow you to acquire the most desirable properties in the states of Washington and Oregon.

Federal Regulations Limit Access to Loans

Because cannabis is still listed as a prohibited substance under federal law, most traditional banking institutions are unwilling to offer loans for commercial real estate acquisitions associated with the cannabis industry. This will typically limit your ability to find lending arrangements to acquire land for growing cannabis, facilities for processing and manufacturing it and retail space for selling it.

The Value of Alternative Lending

Alternative lenders can provide CRE loans for cannabis industries. By choosing these financial institutions as the source for your funding for commercial real estate acquisitions, you can achieve the most flexible terms and the greatest possible access to funding for your cannabis-related business enterprises. This can help you to cash in on the profits possible in this fast-growing industry.

Working with alternative lending companies is the best way to acquire funding for your cannabis-related business. These lending institutions can offer real help in obtaining CRE loans for a wide range of activities, including renovating current buildings and acquiring new properties. Your alternative lending company can act as a reliable partner in making sure you have the funds you need on terms your company can afford.

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