The cannabis industry is buzzing about Minnesota as the next major market. But is it all it’s cracked up to be?
Beneath the surface, there are significant challenges many haven’t yet grasped. At CannDev, we’ve dug into the regulations and consulted with operators, attorneys, and consultants to uncover the key pitfalls.
Here are 4 critical issues flying under the radar (number 4 is most vital!):
1. The Microbusiness Advantage: Unlimited microbusiness licenses skip the lottery process. Operators can focus solely on retail without activating additional license uses, effectively creating a de facto retail license—free from the lottery’s uncertainty.
2. Market Saturation: Many markets will have no caps on retail licenses (including in key areas like the Twin Cities) and no distance requirements between stores, oversaturation is a real risk—echoing challenges seen in Oklahoma and New Mexico.
3. Real Estate Rush: While real estate isn’t required for applications, the race for prime locations will heat up once licenses are awarded, fueling competition and driving up costs. (More on this below)
4. Local Hurdles: State-level licenses are just the beginning. Gaining approval from local municipalities—each with unique processes (merit-based, lottery, first-come-first-served)—will be the true bottleneck. New Jersey’s experience, with hundreds of licenses but nowhere to operate, serves as a cautionary tale.
For savvy operators, the strategy is clear: go the microbusiness license route, focus on cities with favorable licensing processes, prioritize locations near borders to tap into underserved populations, and secure real estate early to avoid bidding wars.
In the coming months these retail operators will begin to pick up the best real estate locations.
In New Jersey, when real estate wasn’t initially required, we advised clients to secure locations early.
Those who acted fast locked in favorable deals, while those who waited were left competing against hundreds of license winners—driving up lease and purchase prices.
The most successful retail operators plan their full development strategy before the rush begins.
This is where CannDev comes in…
At CannDev, we’re already securing off-market compliant retail locations for future license holders, focusing on cities with sustainable regulatory frameworks.
These locations will come with vital contingency time to allow for retailers to go through the license process.
Many of our secured sites are near state borders with large population centers, offering high revenue potential—especially since Minnesota borders four states that lack adult-use sales.
We currently have two border-adjacent locations available, with more in Minneapolis and St. Paul coming soon.
To explore these opportunities please fill out the form at the link below.
Don’t wait—plan ahead and position yourself for success in Minnesota’s evolving cannabis market.
