Cannabis Real Estate Insights | July 2026
A monthly briefing for Michigan cannabis entrepreneurs, operators, and lenders.
Cannabis Industry Pulse
Menominee's Cannabis Licensing Deal Draws Ethics Complaint and Corruption Warnings
A 2023 settlement that let marijuana companies pay Menominee's legal bills in exchange for licensing commitments is now the subject of an ethics complaint and warnings of a possible state or federal investigation. A state senator has flagged the arrangement to the Attorney General's Office, and a councilman's family company reportedly flipped a property to a cannabis dispensary for profit. For anyone underwriting a deal tied to a municipal settlement or license commitment, this is a reminder to look hard at how that commitment came about.
Source: Michigan Marijuana News, via Cann.dev Michigan Retail Update, June 9, 2026
Michigan's New 24% Wholesale Marijuana Tax Guidance Draws Criticism
Treasury's Revenue Advisory Bulletin 2026-3 interprets the new wholesale tax that took effect January 1, 2026 and applies to the first sale from a cultivator or processor to a retailer. It's a cost that shows up in deal underwriting, especially for vertically integrated operators pricing an acquisition.
Source: Cannabis Law Blog, 2026
New Buffalo Township Sets Revocation Hearings for Four Dispensaries
The township board scheduled a June 22 hearing to consider special land use conditions and possible license revocations for four adult-use retailers, citing sales-limit violations, surveillance gaps, and late reporting of criminal activity. If you're buying or financing an operating retail site, confirming the license is actually in good standing with the local unit of government is now just as important as what shows up on Schedule B.
Source: Harbor Country News, June 2026
Michigan Regulatory Watch
Cannabis Regulatory Agency (CRA) updates affecting real estate.
The CRA's latest monthly Disciplinary Action Report, covering investigations completed in April and released June 30, shows inventory-tracking failures are still the most common compliance problem in the industry. Sixteen licensed businesses across the state -- growers, processors, retailers, and safety compliance labs -- were disciplined, with eight of those tied to failures in the METRC seed-to-sale tracking system. A handful of operators, including businesses in Chesaning and River Rouge, racked up multiple citations from a single investigation covering tracking, surveillance, and unauthorized transfers between licensed businesses. None of this changes title or ownership of the real estate, but a pattern of unresolved disciplinary actions against a seller's operating entity is a real signal worth checking before you close -- fines and required corrective filings can follow the license, and in more serious cases can lead to suspension or non-renewal.
Sources: MITechNews: Michigan Cannabis Regulators Cite Recurring METRC Tracking Violations, June 30, 2026 · Michigan CRA: May 2026 Disciplinary Action Report · Michigan CRA: Disciplinary Actions
Cannabis Title Insight
What Happens to Title When a Grow Facility Closes Down
If you're buying a property that used to be a licensed cultivation or processing facility, the title work looks different than a standard industrial purchase. Once we know a property had a cannabis use, we look closely at what's recorded against it and how that history should show up on your title commitment. Sometimes there's a recorded lease, a development agreement, or a deed restriction tied to the old operation. Other times there's nothing recorded at all, and the only trace of the prior use is what the seller tells you or what shows up in a property condition report. Either way, our job is to make sure anything that IS recorded is accounted for on Schedule B, so you know exactly what you're taking subject to before you close.
What we don't do, and want to be upfront about, is play environmental consultant. If a former grow facility has physical issues from its prior use, such as extraction chemical residue, high-humidity mold conditions, or electrical infrastructure that needs to be inspected, that's a job for an environmental consultant or engineer, not your title agent. What we can do is make sure your policy correctly reflects recorded matters and flag when an exception should be added because of something in the chain of title, like a use restriction placed by a prior cannabis lender or landlord. Getting that Schedule B language right the first time saves you from a fight with your title company down the road, and it's exactly the kind of issue that trips up agents who haven't closed many of these before.
Sources: Michigan Cannabis Regulatory Agency
From Dave's Desk
No cannabis industry events or CRA meetings landed on my calendar this past month, but the deal flow didn't slow down. I'm seeing more operating retail and cultivation facilities change hands as business-and-lease structures rather than straight real estate sales. If you're structuring one of these, loop me in early. It changes what the title work needs to cover.
— 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.
