Tuesday, May 17, 2016

Attorney Jeffrey Feiler speaking on “The Green Effect: Legalization of Marijuana and the Commercial Real Estate Industry”

CCIM Miami-Dade District – May 2016 / Monthly Meeting / Morton’s Steakhouse

On the 13th of May 2016, The CCIM Miami-Dade-Monroe district hosted its monthly luncheon at Morton’s Steakhouse (2333 Ponce De Leon Blvd), in Coral Gables.

Attorney Jeffrey Feiler
For the second straight month, a sold-out crowd of 60 people including CCIM designees, CCIM candidates, lawyers, investors, mortgage brokers, and many guests were in attendance.  The special guest was criminal trial attorney, Jeffrey Feiler of the Feiler Law Firm, one of the foremost experts on the legalization of medical marijuana.

Mr. Feiler witnessed firsthand the complete development of this process during the legalization of medical marijuana in Colorado in 2010 and played a critical role in providing legal advice. Feiler’s involvement dates back to 2009 with the state of Colorado.

According to federal law, medical and recreational marijuana are illegal. However, the United States Department of Justice (DOJ) advised United States Attorneys not to prosecute individuals and businesses operating in compliance with state laws in those states with strong enforcement of their laws; furthermore, the memorandums addressed approximately eight activities that will not be tolerated by the federal government. For example, the sale to minors is prohibited. In other words, the legalization of marijuana has mostly become a state issue.

CCIM Miami-Dade District
In 2016, Florida finds itself in a similar position to Colorado. It is becoming clear that the medical use of marijuana will be a specific industry. In addition, this industry encompasses many fields such as medicine, law, economics, ancillary businesses and of course commercial real estate. From a commercial real estate perspective, there are many concerns.

Topics included:
  • Ventilation: Installing proper ventilation in order to control humidity
  • Electricity: Proper installation of electrical systems and cost of electricity
  • Warehouse Storage: The smallest size is about 7000 square feet and the largest is 40,000 square feet
  • Locality: Where will indoor and outdoor facilities be allowed? Problem with neighboring businesses
  • Water System: The methodology of growing marijuana, from purely organic hand watered to more commercialized irrigation systems
  • Hard equity, private lenders involvement in transactions due to it being a "cash business"
  • Triple Net: In Colorado it is a seller’s market thus triple net leases are standard
  • Taxes: The medical and recreational product of marijuana in Colorado are the same, the only difference is taxes. Recreational use is taxed higher, at around 20%.
  • Retail: There is the industrial warehouse space but there is also the retail storefront. These marijuana stores are known as “Dispensaries”. Where will these dispensaries be permitted?
  • Entrepreneurs: Currently the big pharmaceutical companies have not entered the race, which has left the arena opened to entrepreneurs
  • Regulation: How does one treat marijuana? Should it be viewed like alcohol?  

On November 2016, the Medical Marijuana Amendment, known as Amendment 2 will be on the presidential ballot.

Now it is Floridian’s time to decide.

Carlos Rodriguez Jr.
CCIM Candidate and Miami Dade-Monroe Blogger / KW Commercial


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