New York Dispensaries Compete with State for Shop Sites

At least one location owner appears to be setting up a "bidding war" between licensees and DASNY.

Some New York adult-use dispensary permit winners aren’t happy that they’re now apparently competing with the state for potential locations for their businesses.

At least a few of the 165 winners of conditional adult use retail dispensary (CAURD) licenses have run up against the New York Dormitory Authority of the State of New York (DASNY), which was tasked with finding – and leasing – real estate for the same batch of permit winners, NY Cannabis Insider reported Friday.

The outlet cited New York City attorney David Feder, who shared on LinkedIn this week that he was notified by a real estate broker that a property owner wasn’t interested in selling because he was getting offers from both Feder’s client and DASNY, so he likely wanted to wait to see who was going to make the better offer.

“They didn’t turn me away,” Feder told NY Cannabis Insider, about the broker. “In fact, they’re inviting us to participate in what almost seems like a bidding war against DASNY.”

Feder further said that it’s not just DASNY that shop license winners are competing against; in many cases, they’re competing against each other as well, since licensees can either find and finance their own locations or rely on DASNY to find them a site.

Feder called the entire situation “a very unnerving prospect” for his clients and said it’s unclear what the best course of action is.

Part of what makes it difficult is state regulations that currently prohibit dispensaries from being located within 1,000 feet of each other, so any location that gets approved by the state Office of Cannabis Management then creates a new buffer zone around it that cancels out other potential sites. That rule, however, may be in flux.

John Schroyer

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