What to Verify Before You Sign a Dispensary Lease

• Lease signing creates real financial and legal commitments
• Many dispensary failures begin with unchecked lease assumptions
• Zoning, use rights, and contingencies must be verified in advance
• Lease terms can limit construction and compliance options

Signing a dispensary lease is one of the first irreversible decisions an operator makes. Unlike early planning assumptions, lease terms create binding obligations that can restrict zoning compliance, construction options, and timelines. Verifying critical details before signing is essential to protect the project.

The lease must explicitly allow cannabis retail use. Generic retail language is often insufficient and may conflict with local zoning or landlord restrictions. Operators should ensure the permitted use clause clearly includes dispensary operations and related activities.

Zoning and buffer compliance should be verified independently before lease execution. A lease does not override zoning restrictions, and landlords are not responsible for regulatory feasibility. Verification should occur through official planning sources.

Dispensary leases should include contingencies tied to licensing, permitting, and regulatory approvals. Without these protections, operators may be obligated to pay rent on a space that cannot legally open as a dispensary.

Lease terms often restrict construction methods, structural changes, security installations, and storefront modifications. Operators must confirm that required architectural and security work is permitted under the lease before signing.

Common mistakes include relying on verbal assurances, underestimating build-out restrictions, and skipping contingency clauses. These issues often surface only after money has been committed, making them expensive and difficult to resolve.

Lease verification belongs squarely in the planning phase. Once signed, options narrow quickly and costs accelerate. Careful review before execution preserves flexibility and protects the viability of the dispensary project.