17 minute read
The Cannabis Brokers
from CCR Issue 9-2022
Cannabis The Brokers
Matte Namer founder, Cannabeta Realty
The Cannabis Brokers
If you want Matte Namer to be honest about the cannabis movement in the New York City area, Namer will: Anyone can get cannabis delivered. But if you want someone to harvest it, package it, market it and distribute it, you need space. That’s where Namer’s company, Cannabeta Realty, comes into the picture. As founder of the New York-based brokerage firm, Namer is helping clear the path for storefronts and warehouses bringing cannabis to the New Yorkers. The real estate developer, asset manager, hotelier and salesperson has been busy helping grow the cannabis market in the tri-state area with a company of commercial real estate industry veterans representing more than $1 billion in transactions. Cannabeta leverages its knowledge of neighborhood demographic trends to help its clients identify and implement cannabis retail strategies. It also makes sure its clients can maximize revenue in the pre-license phase of their business by drawing upon our unmatched experience in short-term rentals and pop-ups. We sat down with Namer to get an inside look at how Cannabeta is helping change the New York area cannabis game.
GIVE US A SNAPSHOT OF YOUR BRAND? Essentially, we are the experts at the cross-section of the cannabis and real estate industries. We have a geographical focus on the tri-state area. New York, New Jersey, and Connecticut have each recently legalized cannabis for recreational and adult use. They will each rapidly grow to multi-billion dollar industries in the next couple of years and need cannabis real estate solutions. We are a very unique kind of company in that we are a real estate brokerage and
advisory firm that focuses entirely on the cannabis industry. We’ve developed specialized expertise that allows us to work very effectively with cannabis companies that want to source real estate or with real estate companies and property owners who wish to work with cannabis companies.
WHAT TYPE OF CONSUMERS ARE YOU TARGETING? We work with any type of cannabis business that is looking to source real estate in the tri-state area. We also work with cannabis businesses looking to finance their projects. Additionally, we are working with land and property owners interested in cannabis businesses as tenants or purchasers of their properties.
HOW DOES THE OVERALL DESIGN OF YOUR SHOP CATER TO WHAT CONSUMERS WANT? Your typical cannabis dispensary has a much higher-end renovation and buildout than many expect. Some have a minimal aesthetic that might be more reminiscent of an Apple store; others try to emulate a more natural, wellness-type aesthetic that could evoke a spa or a high-end natural beauty product store. You definitely get some variety, but generally speaking, there are a lot of exciting design aesthetics that different types of cannabis brands and dispensaries are now utilizing. On the other end of the aesthetic spectrum, we also work with many companies focused on cultivation. Plenty of dynamic construction elements go into building a cannabis cultivation facility. They are a type of controlled environment agricultural building, with very unique layouts and mechanical infrastructure.
WHAT KIND OF ADJUSTMENTS HAVE YOU MADE IN ORDER TO CATER TO HOW CUSTOMERS ARE SHOPPING IN THIS NEW LANDSCAPE? Many cannabis dispensaries are currently examining how to develop a delivery system efficiently. It is essential for the store buildout to support that operation, depending on the dispensary owner’s strategy. People are definitely looking at that aspect of the business: how orders are placed and delivered to the consumer. Every state has different laws regarding the order and handoff or delivery of cannabis to the consumer, and sometimes the regulations within a state will also vary.
WHAT TYPE OF AREAS DO YOU LOOK FOR WHEN SEEKING STORE LOCATIONS? Cannabis dispensaries will have a very high amount of revenue per square foot. That usually means we try to source prime locations while adhering to local zoning codes, which often prohibit cannabis dispensaries from being highly visible, close to residential and school zones, or in walkable retail areas.
When Cannabeta Realty is sourcing dispensaries in suburban areas, we assess factors like how much parking is available at the site, how visible the property is from the road, how many vehicles per day drive on that road and how many consumers are within convenient driving distance.
WHAT IS YOUR SHORT-TERM STRATEGY? LONG-TERM? In the short-term, we truly believe in providing a good experience for our clients to get repeat business and word-of-mouth referrals. Ensuring Cannabeta has an excellent reputation in the industry is our primary short-term goal. We are expanding our company and continuing to do what we do best: sourcing a variety of different types of locations for cannabis businesses. Cannabeta is effectively sourcing sites for cannabis businesses in New York City and Jersey retail markets. We have also been sourcing cannabis cultivation locations in New York and New Jersey. So far, we’ve closed many deals in those categories. In the long-term, we’re looking to continue doing business in New York, New Jersey and Connecticut, though the way we operate within those states will change over time. In the future, I suspect that we will probably be more involved with selling and financing different types of cannabis businesses, which is a trend that we’ve seen starting to take place in more developed markets such as Massachusetts. We’re also looking to ultimately expand our geographic focus to markets such as Pennsylvania and Maryland. They currently are medical-only states, but we expect they
will be some of the next to legalize adultuse cannabis. They are both very highly populated markets that we’re interested in expanding into.
WHAT’S THE BEST PIECE OF ADVICE YOU CAN OFFER OTHER BRANDS ON HOW TO DEAL WITH EVERYTHING HAPPENING TODAY? I foresee that ethical consumerism and Environmental, Social, and Governance (ESG) will become more important in the cannabis industry. As consumers develop more awareness, they will start to look for brands that align with their values, whether those are businesses owned by families, women or minorities, businesses that victims of the drug war run, or small businesses in general.
GET UP TO $26,000 PER EMPLOYEE FROM THE IRS
If you had 2 or more W-2 employees in 2020 or 2021 you can get money from the Employee Retention Tax Credit (ERTC) program. This is the last of the CARES programs available.
Not a Loan Use Money how you want Treasury check comes directly to you Can also have taken a PPP1, PPP2 loan
Example of potential claim: A company with 12 fully qualified employees 12 X $26,000 = $312,000 claim back to the company by US Treasury checks sent directly to you!
A Few Basic Qualifiers: Employers that pay by W2 Businesses with under 100 employees for the 2020 credit and under 500 employees for the 2021 credit (schedule a call to understand the differences and how the 2020 100 employee range can be maximized over that number) For-Profit AND Non-Profit companies/organizations 2 - 500 Employees (we currently don't count ownership and immediate family employee status due to gray area in guidelines and we don't want you penalized for it) Newly established businesses (from February 15, 2020 forward) can claim the ERTC for 2021 Q3 and Q4, if they haven't had gross receipts over $1,000,000 in the calendar year. (schedule a call for clarification) How Our process Works: Contact us so we can talk to you about your company, activity, and how
Covid hindered your business. This should only take about 15 minutes. If you have the qualifications needed we will request the proper documents from you to start your file and calculations (941’s, Employee Payroll reports, and Gross Revenue Receipts) We get back to you in 2-3 days with a claim amount We send you a client agreement that lays out fees and services Certify all paperwork, submit to IRS for acceptance, Treasury checks are mailed to you
Fine dining restaurant $243,622.00
Optometrist $127,911.00 CLAIMS OF SOME OF OUR HAPPY CLIENTS
Staffing agency $1,201,063.00
Attorney office $111,103.00 Nail salon $32,587.00
Pizza location $155,809.00
Find Out How Much Money You Can Claim
The environmental impact of the cannabis industry is under-discussed, but I believe it will increasingly factor into discussions. As brands develop, they must be mindful of practices. Looking at studies on how people choose brands, ethical consumerism ranks exceptionally high among the reasons people pick one product over another. I think this will become very important in the cannabis industry. Speaking for ourselves, Cannabeta is a small, minority-women-owned business.
WHAT MAKES YOUR LOCATION ENGAGING TO TODAY’S CANNABIS CUSTOMER? HAVE YOU ADDED ANY IN-STORE FEATURES? We have sourced different kinds of dispensary locations for various types of clients. We recently sourced an extensive site in a central area of Manhattan for a prominent client that will be highly accessible and may even become one of the highest-grossing dispensaries in the nation. It is fascinating to see how different dispensaries are utilizing space. In larger dispensaries, there are often dynamic artwork and lounge areas for customers that are not consumption lounge areas. I’m excited to see how different dispensary companies break ground in New York state with enterprising ideas for new cannabis businesses. WALK US THROUGH HOW AND WHY YOUR SHOP(S) IS DESIGNED THE WAY IT IS? The aesthetics of dispensaries often challenge the stereotype of what a “head shop” is. Cannabis is a large, legitimate industry still facing many taboos, so dispensaries must carefully craft their look, store buildout, and general atmosphere to convey a feeling of safety, quality and customer service. Dispensaries focused on health and wellness benefits will often try to emulate the aesthetics of a spa, with lots of natural textures and soft lighting. Dispensaries targeting a more adult-use clientele often try to capture the look and feel of a clean, minimal, luxury store with sleek fixtures and clear, bright lighting. There are a few defining architectural features of most dispensaries, too. They must have plenty of space for budtenders and other employees since customers have to interact with them extensively. They need robust overall security and a secure location to store the cannabis and cash. Cultivation properties have their own set of requirements depending on the company’s specific needs. Access to power and utilities, floorspace and sustainability features are all critical design aspects of cultivation spaces.
GIVE US A RUNDOWN OF YOUR MARKET’S LAYOUT. Typically, if a cannabis dispensary is in a suburban location, the design begins with the building’s parking lot and exterior. The lot should be convenient for the consumer to
park in, and there should be enough available parking spots. The exterior of the building should be very visible from the roads. For urban locations, the storefront design is even more critical. For all cannabis dispensaries, once you enter the door, there should be a security or check-in area where someone checks IDs. After that, the customer might want to browse the store a little. Some stores have a lot of display cases where they showcase various products they sell. Some of the largest dispensaries will sometimes have 40 different display cases. Other smaller dispensaries might not have display cases, and the customer may go directly to the desk to speak to the budtender. There, the focus is on the customer experience. The budtenders usually are behind a counter with many Point of Sale (POS) stations. The counter often displays products the business sells, and there are usually screens with various menus for what the dispensary is selling. Typically, busier dispensaries will want more POS stations, as they can help the shops bring in a lot of revenue in a busy location.
There also will be some way for the budtenders to access the products easily, as they must remain in a very secure location such as a vault. The [back-of-house] area for cannabis dispensaries is usually pretty significant. Often, there is an office and space for the employees. Dispensaries might have a large area where you walk in, sometimes with an awe-inspiring piece of artwork—I’ve seen large video art displays and even a van with an octopus coming out of it. There can also be some variation in the different dispensaries you might go to.
WHAT’S THE BIGGEST ISSUE TODAY RELATED TO THE CONSTRUCTION SIDE OF THE BUSINESS? One of the significant challenges for cannabis companies is timing. They often will not want to spend money on construction until the cannabis license is in hand. Once they have the cannabis license, they want to open for business as soon as possible because they’ll do better business earlier when there is less competition. At the start of the recreational cannabis program in any state, it is a race to the finish. The first open businesses will often do very well in the first year. So timing is a significant factor. Beyond that, what makes dispensaries’ buildouts unique are all the security features that need to go into them since they are a prime target for robberies. Dispensaries will have a large amount of cash on hand because cannabis is still federally illegal, and it is difficult for cannabis companies to
do banking or be able to take credit or debit card purchases. The risk of theft also can be a genuine concern for neighborhoods that have cannabis dispensaries in them. Having very thought-through security plans and programs is very important for dispensaries—keeping the cannabis in a vault, having a very thought-through plan for how cannabis is delivered, and ultimately having a strong security point in the front of the store. TALK ABOUT SUSTAINABILITY. WHAT ARE YOU DOING? We as a company have set a mandate to donate 10% of our profits to charity. One of the groups we work with is the New York Growers and Processors Association, which has promoted sustainably-grown cannabis. Sun-grown cannabis has a considerably smaller carbon footprint than cannabis grown indoors and in warehouses. Not many people are aware that indoor-grown cannabis has a high carbon footprint. We’re generally trying to promote outdoor-grown cannabis as much as we can. Sustainable building practices should be paramount in setting a store floor plan at the dispensary level. Our company has focused on sustainable construction throughout my career as a real estate developer. We did gold-LEED certified projects with very efficient mechanical systems, solar thermal, well-designed insulation and windows, and recycled or Forest Stewardship Council (FSC) certified woods. Many sustainable elements can go into building any type of sustainable retail space. Sustainability efforts are even more critical on the cultivation side of the business. Indoor growers can offset energy usage by installing solar—many companies design cultivation facilities to capture the heat they produce and recycle the water they use. You can make quite a big difference with sustainability in building out cultivation facilities. I would advocate and hope that the lawmakers regulating the buildout of these facilities make some stringent requirements for how cannabis is grown or at least come up with a way for cannabis growers to track the carbon footprint accurately they’re creating.
WHAT TYPE OF OPPORTUNITIES DO YOU SEE MOVING AHEAD? I’m excited about New York state, in particular, starting to issue cannabis licenses for businesses to sell and cultivate cannabis. Once that happens, our company will probably become a lot busier. So that’s something on the horizon that I’m excited about.
WHAT TRENDS ARE YOU SEEING/EXPECTING? I expect more focus on ethical and sustainable practices in the cannabis industry.
We’re already seeing customers making choices based on brands’ values, so we know that individuals are increasingly concerned with ethical consumption. In many cases, dispensaries will need to highlight their ownership, values and mission or contributions to the cannabis industry and the community to win over consumers. As more people become informed about the huge carbon footprint that a lot of indoor-grown cannabis produces, sustainability will become a big factor in brand choice. Consumers across every industry are more concerned about sustainability now than ever, so it makes sense that it will carry over to the cannabis space. Whether that means only buying from companies that support sustainable practices, choosing outdoor-grown cannabis or backing carbon-neutral brands, we’re going to see more and more customers worried about the impact that the cannabis they buy has on the environment. WHAT’S THE SECRET TO CREATING A “MUST VISIT” LOCATION TODAY? There are three elements: Most consumers will look for a convenient location—that’s probably the most important thing. Beyond that, having a unique experience at the dispensary is essential. Experiential purchasing is critical for dispensaries that see significant tourist business, such as dispensaries in New York City. So something unique is essential. Finally, having a wide variety of products for more discerning and advanced consumers is fundamental.
WHAT ARE TODAY’S CONSUMERS LOOKING FOR? They’re looking for consistency, safety and excellent customer service. These elements were not available to consumers in the unregulated cannabis market. There is an element of safety in the cannabis sold in legal dispensaries nowadays regarding lab tests for mold, the amount of THC and other safety concerns. Any cannabis dispensary I’ve ever been to also has individualized customer service. Even for experienced cannabis consumers, seeing the various options and selections from dispensary to dispensary can be daunting. People often go with what the budtenders recommend, so customer service is critical. Generally speaking, you have the traditional elements of what all consumers seek—quality products, a good diversity of products and well-priced products. I think you also get a segment of consumers wanting an experience sometimes, especially those newer to dispensaries and those newer to cannabis.
TELL US WHAT MAKES YOUR BRAND SO UNIQUE? Cannabeta Realty was the first real estate brokerage firm to specialize entirely in cannabis. I believe we’re still the only real estate brokerage firm in the tri-state area that focuses exclusively on the cannabis industry. We’re extraordinarily unique in that sense.
ONE-ON-ONE WITH... Cannabeta’s Matte Namer
Describe a typical day.
I have a morning routine that is very important. The first thing I try to do when I wake up is get up and walk around outside and see some nature. Getting sunlight and having my eyes able to look at short and long distances is very important. I’m very health-focused, so I like to meditate, do yoga or go for bike rides in the morning. Then I’ll look at my calendar for the day and dive into my to-do list. Since I’m the head of the company and we are a small business, I get involved with all aspects of the work. The most important thing is always ensuring that our existing clients get good quality service from their point of contact. Beyond that, I am also very involved with the company’s business development, marketing, and financial aspects. These are things I need to focus on as the head of the company because a lot of my other agents are directly focused on serving our client’s needs.
What’s the most rewarding part of your job?
It is the team I get to work with. Cannabeta has an incredible team and great culture, and we all truly enjoy each other’s company and working with one another, which is incredibly important. Seeing the people in our company learn from me, learn from their job and become greater experts in this unique field is probably the most rewarding part of the job..
What was the best advice you ever received?
As far as Cannabeta is concerned, the best advice I have ever received is to be patient. Often, the cannabis industry changes rapidly, but also it can get very delayed when it comes to regulators opening up new spaces, drafting regulations, and licensing cannabis businesses. Being patient and flexible are two things that are essential for any cannabis business.
What’s the best thing a client has ever said to you?
We worked with the Director of Strategy of one of the country’s largest multistate Cannabis Business Organizations (MSOs). He told us we were the best real estate firm he’s ever worked with, which was a huge compliment.
