Cannabis Real Estate Insights | August 2026
A monthly briefing for Michigan cannabis entrepreneurs, operators, and lenders.
Cannabis Industry Pulse
CRA Holds a Second Public Hearing on the Proposed Marihuana Rules
The Cannabis Regulatory Agency held its second public hearing on proposed rule set 2023-25 LR on July 23 in Lansing. Much of the comment went to consumer-safety questions, but the provisions that matter to a property deal are the material change reporting and enforcement pieces.
Source: LARA / Cannabis Regulatory Agency news release, June 24, 2026
House Bill 6163 Lands in Committee with Waste Disposal and Transporter Changes
HB 6163 moved into committee carrying changes to cannabis waste disposal and transporter crew rules.
Court-Approved Eastpointe Settlement Clears a Second Dispensary
A Macomb County Circuit Court judge approved a settlement between an operator and the City of Eastpointe clearing the way for a second retail location. Ask for the judgment before you close.
Michigan Regulatory Watch
Cannabis Regulatory Agency (CRA) updates affecting real estate.
The proposed marihuana rule set has now been through two public hearings, the second on July 23 in Lansing. The draft expands agency authority in several places, most notably around material change reporting, enforcement, and penalties. For real estate, the material change and reporting provisions are the ones to watch. A change in ownership of the entity that holds the license is exactly the kind of event they reach, and entity-level transfers are how most Michigan cannabis property deals are structured. Nothing here changes who owns the dirt or what a title policy covers. What it can change is sequencing. If a rule conditions an ownership change on state notice or approval, that belongs in your closing timeline up front.
Sources: LARA: July 23 public hearing notice · LARA: Rules promulgation update · MICIA: CRA Proposed Rules · Michigan CRA Bulletins
Transaction Spotlight
Details anonymized to protect client confidentiality.
This month's spotlight is a refinance of a cannabis property with cash out to the borrower, which is not a common deal in this market. Cannabis financing has tightened as the market has softened, and cash back to the owner is not something most lenders are writing right now.
Two things made it work. The borrower had paid cash for the asset, so even with proceeds coming back out, the loan-to-value stayed conservative. And the lender was a local credit union, one of the few categories of institution still lending on cannabis-use property in Michigan, and one that could get comfortable with both the asset and the borrower.
The point for operators sitting on equity: if you bought the building with cash, you may have more room than the headlines suggest. That conversation is worth having with a local lender before you assume the answer is no.
Cannabis Title Insight
Who Actually Lends on Michigan Cannabis Property, and What They Want From Title
The financing menu is short by design. Marijuana is still Schedule I federally, so SBA is out, and so are the agency and conduit programs. Fannie, Freddie, HUD, and CMBS all decline properties where cannabis is the primary use. Most banks decline as well. What is left is narrower: the state-chartered banks and credit unions that have deliberately built a cannabis program, private debt funds, specialty cannabis lenders, and seller financing. None of them work off a standard form.
On the title side, standard policies exclude the consequences of violations of federal law, so nobody is insuring the federal-illegality risk itself. That sits with you and your lender and should be priced there. What a policy does do is the work it always does, and here it matters more, not less: confirm who holds fee title, insure the priority of the mortgage, and account on Schedule B for every recorded matter, including leases and memoranda, development agreements, use restrictions, and covenants a prior cannabis lender or landlord put on record. Get your lender's title requirements in writing early. Private cannabis lenders routinely ask for endorsements a bank would never request.
Source: Hurwitz Fine: The Cannabis Industry, Lenders and Title Insurance
From Dave's Desk
July brought a steady run of cannabis property across my inbox. Cultivation and processing in mid-Michigan, retail in a couple of outstate markets, cannabis-zoned warehouse in metro Detroit, agricultural land up north. What stood out was how many advertised seller financing right in the subject line. That tells you where the debt market is, and it tells you to slow down on the paper. Call me before you sign.
— Dave
Work With Us
If you're acquiring, financing, or developing cannabis-zoned property in Michigan, we handle the title complexities that general agents won't touch. Reach out for a conversation about your next transaction.
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About Midwest Title and Dave Nykanen
Midwest Title's Commercial Division handles Michigan's most complex commercial closings — including cannabis-zoned acquisitions, license-tied property transfers, multi-parcel operator consolidations, and the underwriting and Schedule B issues that stop generalist title agents cold. Founded and led by Dave Nykanen, a licensed Michigan real estate attorney with three decades of experience in commercial real estate as both a practicing attorney and a title agent, the division brings the legal and underwriting depth that cannabis transactions demand.
Contact: commercial@mwtmi.com | Midwest Title | Commercial Division | Michigan-Licensed Title Insurance Agent
This newsletter is for informational purposes only and does not constitute legal advice.
