Greg Tannor, CEO & Founder of FlowerHouse NY – Interview Series

As the New York cannabis industry expands, it’ll be worth watching which brands become highly regarded across The Empire State versus those that remain local house brands. One such canna-business owner whose company produces popular and celebrity-affiliated brands such as House of Puff and Tyson 2.0 is Greg Tannor, CEO & Founder of FlowerHouse NY. From real estate to cannabis in one of the newest markets with quite a bit of potential, mycannabis.com had the pleasure of speaking with Greg about his career and transferable skills in both fields and the current state of the New York cannabis market.

What subjects did you study at Northeastern, and how would you say those subjects prepared you for a role in both commercial real estate and the cannabis industry? 

I studied real estate management. It kind of helped with commercial real estate but to be honest, most of my learning was in the field.  The management side has helped in the cannabis industry.

What initially caught your interest about working in commercial real estate, and what were some of the largest or otherwise most important commercial properties that you were the realtor for or otherwise involved in? 

I am a deal maker and love the art of the deal. Commercial real estate aligned with my personality, something I always wanted in my profession. Some of the largest/important deals that I have been involved in were Tesla’s (TSLA ) global flagship in the Meatpacking District, the re-positioning of the Meatpacking District for over 700,000 Square feet of commercial space, and the leasing of American Dream in NJ.

Because working in both commercial real estate and cannabis simultaneously is certainly an uncommon career trajectory, what first interested you about working in cannabis?

Cannabis was more of a passion project. Real estate pretty much got me into the cannabis space since cannabis needs real estate and I had access to some amazing opportunities.

What were the first years of working in cannabis like, and what were some common problems and scenarios that occurred during those initial years? 

Cannabis in New York was a “Startup” and startups have lots of issue.  In the first few years, it was challenging to get your footing into New York and understand the customers along with the retailers. Basically, what they are looking for, what you are offer, price points, etc. Capital was also challenging since cannabis is not federally legal there are issues with lenders and raising capital.

As someone who’s worked in both the Massachusetts and the New York cannabis industry, what would you say are the most obvious similarities and differences between the two state industries? Does one state have certain advantages over the other one?

Each state has its own issues and challenges. In Massachusetts I was in retail, in New York we are in Cultivation/Processing and distribution. The challenges in New York with regulations are similar to Massachusetts with other hurdles. Regulations are always a challenge and it’s hard to stay on top of the rules and regulations as it pertains to all aspects of the industry.

What are the regular duties as CEO of FlowerHouse NY, and what are some lesser-known duties of your role? 

There’s nothing I wouldn’t do for the company. I would even load up my car for deliveries if I had to and I have done that.  My typical duties as the CEO are to manage my executive team, cash flow and operations, handle day-to-day issues, and make decisions quickly to better the company. My first and foremost duty is to make the right decisions for the success of the company.

How did FlowerHouse NY get so many celebrity brands on its shelves, and what similar accomplishments has the store experienced?

We represent celebrity brands (We are not a retailer), but most recently we have had great success with the launch of StayMe7o by Carmelo Anthony. We have very strong relationships in the market and are able to attract great brands. We also have amazing relationships with retailers which has helped brands/celeb brands be attracted to working with FlowerHouse.

What are some common issues related to commercial real estate that the cannabis industry regularly faces? I would imagine the strict zoning laws for cannabis businesses and manufacturers would make a commercial real estate agent’s job a bit more difficult. 

Zoning and banking regulations are the major hurdles for cannabis real estate. Five years ago, it was a lot easier because we didn’t have proximity protection issues. What we did have were landlord that didn’t believe in the cannabis space for New York or were “old School” and didn’t want the use in their building. We were able to navigate around most of the issues and secure “prime” locations for operators to open up. There is a full vetting process prior to offering a space out to an operator (There’s a vetting period for the operator as well, but we are talking about the real estate side). We needed to go through all aspects of compliance and rate the site internally for approval by the OCM. After all the hard work, the fun part is offering the space out to the operator in the hopes they see what we see for the future of the location.

Do you think a federal rescheduling of cannabis would change those strict zoning laws or would those stay in place? 

The only thing that would really change is the banking side. In Manhattan and throughout New York State most buildings have debt on them, meaning they have a lender that may or may not approve the cannabis use.

What are some future plans FlowerHouse NY has, and how would a federal scheduling change those plans? 

Future plans for Flowerhouse – We will have to see. Right now, we are very focused on the New York market and really establishing ourselves before expanding into other states. If Federal rescheduling happens, or when it happens, then there would be more to talk about in terms of our future plans.

Thank you for joining us, Greg! For more information on Flowerhouse NY, please visit its website.