CBD Industry Offers New and Exciting Opportunities for Mall Owners

 Posted on December 00, 0000 in Commercial Lease Agreements

With widespread mall closures for retailers like Nordstrom, JC Penny, and Macy's, commercial real estate owners are scrambling to fill space. Two major mall franchises have announced plans to add CBD shops to their list of retailers. Learn more about this interesting development in the commercial real estate (CRE) industry, and how it could impact your bottom line.

Mall Franchises Partner with Major CBD Retailer

Two mall franchises, Simon Property Group and Brookfield Properties, recently announced their plans to partner with the major CBD retailer, Green Growth Brands. More than 200 CBD shops will be opened in malls across the country over the next year. With a strong growth history and high-quality products, the CBD company is expected to flourish inside of malls.

Specifically, Green Growth Brands will be featuring its health and beauty stores inside of malls. They own two specific (but different) brands - one focused on soaps and shampoos, the other on the empowerment and wellness of women. The opening of CBD flower shops is also expected in some locations.

Why CBD Shops? 

Non-THC products have long been legal in the United States. However, Americans have only recently shown wide-spread interest in CBD-containing products. Purported to have numerous health benefits, CBD products are considered an alternative to pharmaceutical medications and synthetically produced products. In terms of beauty, CBD products are supposed to be healthier for the body and they are said to promote youthfulness and health.

The growing acceptance of alternative medicine, and CBD products specifically, have led many CRE developers to open up shops. It is a viable alternative to empty space, and given the popularity of these companies, it may be a smart solution.

Of course, CBD shops may not be appropriate for every situation. While CBD products do not contain THC, not all mall owners are willing to deal with the stigma surrounding cannabis-containing products. Others become concerned that the CBD wave is nothing more than a temporary trend. Either way, it is important to ensure you have all the information before moving forward with a CBD shop in your vacant space.

Contact Our Naperville Commercial Real Estate Lawyers Today

Whether you are a current mall owner or planning to purchase one, it is important to understand the challenges and possibilities you may face along the way. Lindell & Tessitore, P.C. can help with all of your commercial real estate needs. Call 630-778-3818 and schedule a personalized consultation with our Naperville commercial real estate attorneys today.

Sources:

https://www.cnbc.com/2019/06/10/green-growth-brands-to-open-over-70-cbd-shops-in-malls-with-brookfield.html

https://moneywise.com/a/retailers-closing-stores-in-2019

https://www.cnbc.com/2019/02/11/simon-the-biggest-mall-owner-in-the-us-plans-to-open-108-cbd-shops.html