Cannabis Real Estate Insights | June 2026
A monthly briefing for Michigan cannabis entrepreneurs, operators, and lenders.
Cannabis Industry Pulse
Federal Rescheduling to Schedule III: What It Changes — and What It Doesn't — for Michigan
On April 23, 2026, the Justice Department rescheduled marijuana products under FDA-approved or state medical programs from Schedule I to Schedule III, unlocking potential 280E tax relief for qualifying medical operators. Michigan's adult-use market — the backbone of the state's roughly $3 billion in cannabis revenue — is not covered by this order. Operators already absorbing Michigan's new 24% wholesale excise tax (effective January 1, 2026) will see limited net benefit until federal treatment of adult-use cannabis changes more broadly.
CRA Rules Overhaul Clears MOAHR; Second Public Hearing Required
On May 11, 2026, MOAHR approved the CRA's revised draft marijuana administrative rules, which incorporate 120+ changes drawn from 700+ public comments received at the 2025 hearing. Because of the magnitude of the post-hearing revisions, the CRA is required to hold a second public comment period and public hearing before submitting the rules to the Legislature's Joint Committee on Administrative Rules. A track-changes version of the rules will be released.
Source: Michigan LARA, May 14, 2026
Michigan Regulatory Watch
Cannabis Regulatory Agency (CRA) updates affecting real estate.
Two major regulatory developments in April–May 2026 are shaping the Michigan cannabis real estate landscape. The CRA's long-running administrative rules overhaul cleared a key procedural milestone when MOAHR approved the revised draft rules — but the 120+ post-hearing changes triggered a required second public comment period and public hearing before the rules can go to the Legislature. Operators and lenders should expect the current rules to remain in effect through at least late 2026.
On the federal side, the April 23 rescheduling order moves certain marijuana products to Schedule III, but title underwriters continue to treat cannabis-use property under existing guidelines. Lender caution on cannabis-collateralized transactions has not materially changed as a result of the order, and operators should not expect the rescheduling to simplify title or financing for adult-use facilities in the near term.
Sources: Michigan LARA: Marijuana Rules Promulgation Update · Michigan LARA: Federal Order Rescheduling Cannabis · Michigan CRA — Laws, Rules & Bulletins
Transaction Spotlight
Details anonymized to protect client confidentiality.
Two new cannabis facilities are currently under contract in the same Michigan border city — both dispensaries positioned to serve not only Michigan residents but the steady stream of consumers driving in from neighboring states where adult-use cannabis remains illegal. The border-town dynamic is a real economic driver: foot traffic models, operator expansion decisions, and the pace of municipal approvals in those communities are all shaped in part by the demand coming from across state lines.
Both transactions involve careful title review of recorded instruments running with the land — development agreements, conditional use permits, and any recorded municipal approvals tied to the specific parcels. On cannabis transactions in border communities, getting the title work right requires knowing what is on record before the deal closes, not after.
Cannabis Title Insight
Cannabis License Transfers vs. Property Transfers — What Attaches to What
One of the most common misconceptions in Michigan cannabis real estate is the assumption that a cannabis license travels with the property. It does not.
A Michigan CRA license is a personal privilege issued to the licensee entity — it does not attach to the land, run with the deed, or transfer automatically when property changes hands. The title company insures the property interest; the CRA separately approves any license transfer or change in ownership of the licensed entity. Those are two distinct transactions with different timelines, different regulators, and different approval standards.
What does run with the land — and what title cares about — are recorded instruments tied to the licensed use: conditional use permits, development agreements, deed restrictions, and any recorded municipal approval tied to the specific parcel. These instruments are excepted on Schedule B or addressed as requirements in Schedule B-I, and they govern what any future owner or lender can do with the property independent of who holds the license.
The practical takeaway for operators and lenders: close the property transfer and the license transfer on parallel tracks, not sequentially, and make sure your title agent understands the difference between what the CRA approves and what the title policy covers — because they are not the same thing.
From Dave's Desk
Border-town cannabis transactions are some of the most interesting files we work — the demand economics are real, the regulatory complexity is high, and the title issues rarely sort themselves out without attention. If you're acquiring, financing, or developing cannabis-zoned property in a Michigan border community, the title questions worth asking early are the recorded-instrument questions, not the license questions. Happy to walk through that distinction on any file you're working on.
— 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.
