Oregon Real Estate Brokers: Are You Ready for the Psilocybin Industry?
An entirely new industry is launching in Oregon beginning next year and its participants may have significant real estate needs. In November 2020, Oregon voters passed Measure 109 which created a state regulated program allowing adults over the age of 21 to purchase psilocybin at a licensed service and under the care of a licensed facilitator. The Oregon Health Authority has been busy overseeing the creation of the rules and regulations which will govern this burgeoning industry. There are still a lot of unknowns about what those final regulations will look like, and Oregon cities and counties still could vote this November to opt out of the psilocybin program.
The participants in this new industry will need to find space to operate their new businesses. There will be four types of licenses: 1) psilocybin service centers; 2) products manufacturing; 3) laboratory testing; and 4) laboratory testing. The service centers should provide the biggest opportunities for brokers. These service centers could range from small urban wellness-spa type layouts to large rural retreats on several acres. There is no limit to the amount of service center licenses and the only restrictions on location we know about so far is that the service centers cannot be in a residential zone within city limits.
Oregon brokers need to be cautious and educate themselves before participating in this market or advising their clients. Like marijuana, psilocybin is illegal under federal law. For brokers representing commercial landlords for example, renting to a psilocybin business will most likely violate the loan documents on the building which require the borrower to obey ALL laws. The marijuana industry had the Cole Memorandum, which provided some guidance on the federal government’s hands-off enforcement position. There is no similar federal guidance to the psilocybin industry, so anticipating how the federal government will treat this new state-sanctioned program is more difficult to predict.
This fall is poised to have significant new developments in the psilocybin industry as the OHA finalizes its regulations and certain cities and counties vote to prevent psilocybin businesses from operating in their boundaries. For brokers interested in working with this new industry, it will be important to follow these developments and learn as much as possible so you can advise your clients accordingly. Continue to visit the Green Light Blog where we have been and will continue detailing new developments in the psilocybin program under Measure 109.