New Jersey Cultivation Cap Expired, But Real Estate Issues Remain

The cultivation cap in New Jersey expired on July 1, 2020, opening the door to an unlimited number of cannabis cultivation licenses in the Garden State. While this is great news for those looking to enter the cannabis industry, real estate issues remain an obstacle.

The New Jersey cannabis industry is booming, with the state having one of the most progressive cannabis laws in the country. The new law allows for the sale of both medical and adult-use cannabis, and the industry is expected to generate billions in revenue. But with the new law comes new challenges, particularly for those looking to enter the industry.

The most significant challenge is the availability of real estate. Cannabis businesses are highly regulated and require a lot of space for cultivation, processing, and retail operations. The state has a limited amount of real estate available for cannabis businesses, and the cost of rent is often prohibitively expensive. This has been a major issue for those looking to enter the industry, as it is difficult to secure a suitable space.

The expiration of the cultivation cap has made the situation even more difficult. With an unlimited number of licenses now available, the competition for real estate is even more fierce, and the cost of rent is likely to increase even further. This could be a major barrier to entry for those looking to enter the industry, and it could limit the growth of the industry as a whole.

The state has tried to address the real estate issue by creating special zones for cannabis businesses. These zones are intended to provide more affordable real estate for cannabis businesses, but the reality is that they are often limited in size and few in number. This means that the majority of cannabis businesses will still have to pay high rents in order to secure a suitable space.

The expiration of the cultivation cap in New Jersey is a positive step forward for the cannabis industry, but real estate issues remain a major obstacle. The cost of rent is often prohibitively expensive, and the availability of suitable spaces is limited. Until the state takes further steps to address the real estate issue, it will remain a major barrier to entry for those looking to enter the industry.