Cannabis Retail Stores in Toronto
In the past month I was approached by numerous individuals that wanted to secure a retail space to sell Cannabis. The Lottery would comment via the AGCO by an online service portal commencing August 7, 2019 and ending August 9, 2019.
It was crucial that a property be secured via an offer to lease. If the applicant owned a property than this process would have been even easier. In the Blog we will only deal with the leasing aspect.
Most applications were made by start up with no experience and no credit history or covenant.
Therefore, to enter into a lease agreement the Applicate would require providing a First and Last Months rent plus a security deposit.
Further many landlords were expecting the list price plus increase yearly for a 5-year lease.
There no room for negations at all. The final factor the Landlord wanted a fee or forfeit of the security deposit if the potential tenant was unsuccessful in the lottery.
The only way the Tenant could be protected was to have a condition that if the Tenant was unsuccessful in the AGCO lottery the deposit to the Listing Brokerage would be returned via a Mutual Release.
Allen Mayer, Commercial Real Estate Broker