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Kelowna Commercial Real Estate Property In High Demand for Cannabis Industry

Kelowna Commercial Real Estate Property In High Demand for Cannabis Industry

With the recent legalization of cannabis in Canada, commercial real estate property and commercial leasing are in high demand for businesses seeking to operate legal cannabis dispensaries in Kelowna and throughout Canada.  

The Cannabis Act ensures a strict legal framework for controlling the production, distribution, sale, and possession of cannabis. In British Columbia, local, provincial and federal laws dictate how and where residents can purchase, distribute and legally use or consume cannabis.  

The Kelowna City Council, for instance, has approved a licence fee schedule for prospective cannabis retailers and has enforced restriction about where cannabis dispensaries can be located, including rules that ensure they won’t be built side-by-side schools, parks, residences, or other family-friendly venues.  

Cannabis Real Estate Property Guidelines in Kelowna

According to real estate firm RE/Max Commercial, Kelowna is primed to become commercial real estate “hot spots” as a result of legalization.  

Kelowna’s commercial real estate market saw an 8% decrease in total sales value for its commercial property year over year, but retail prices are expected to rise as cannabis companies compete for space. 

Approval for cannabis retail licences is highly competitive. Cannabis companies are also competing for commercial real estate property to secure commercial spaces for their retail stores and for space to house their operations. Kelowna has established just over 900 possible locations for cannabis retail stores, including locations downtown, in the Lower Mission, Rutland, and near Kelowna International Airport.  

The applications for dispensaries were open from October 1st, 2018 until the end of November 2018. Council will deliberate before coming to final decisions.  

An annual business licence for an authorized commercial real estate property distributing cannabis will cost $9,465, with an $8,000 renewal fee in addition to the rezoning application fee of $9,450. 

We can expect to see authorized provincial retailers in Kelowna in summer 2019, at the earliest. 

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The Cannabis Act and Kelowna Real Estate

Possession, production, and distribution that does not abide by the laws outlined by The Cannabis Act remains illegal and is subject to criminal penalties ranging from ticketing to a maximum penalty of 14 years imprisonment.  

Approximately one year after The Cannabis Act has come into effect, cannabis products, including edible products and concentrates, will be legal for sale.  

Commercial Purchases and Sales

For commercial real estate deals our team of legal professionals has the experience to identify the myriad of important issues to consider from zoning considerations, to leases, to secured financing. We offer clients knowledge, skill and experience necessary to ensure your personal and commercial interests are protected. We work closely with you and our team to ensure even the most complicated transactions are completed in a timely manner with care, skill, and attention. 

If you have any legal questions or concerns about the cannabis industry or commercial real estate, contact a commercial real estate lawyer for legal advice at Doak Shirreff. Our legal team is a collection of professionals that truly care about our community and those who reside within it.