MINNESOTA CANNABIS RETAIL MARKET UPDATE – JANUARY 2026
Minnesota’s cannabis retail market hit early-2026 momentum with three key developments: Olmsted County processed results from its completed 14-license lottery system (8 micro, 4 retail, 2 mezzo businesses selected in 2025), Robbinsdale approved its first dispensary with tentative zoning clearance, and Carlton moved toward a one-permit cap with a February public hearing.
Minnesota cannabis retail applications are advancing across metro and greater Minnesota jurisdictions, with tribal agreements adding capacity and municipalities setting buffers and registration pathways. Douglas County capped retail at four stores, Alexandria processed new registrations, and East Grand Forks reviewed a White Earth Nation application that could test compact provisions. Retailers face a mix of open windows, emerging caps, and case-by-case permitting that demands jurisdiction-specific tracking.
Plus, see the bottom of this article for available compliant real estate locations that you can attach your Minnesota licenses to. We have some available license opportunities as well. Please reach out if interested in discussing further.
🆕 NEW MARKETS OPENING THIS MONTH:
- 🆕 Carlton – First retail framework, 1 high-potency + 5 low-potency permits
- 🆕 Tracy – City votes to separate from county rules, retail path opens
Top Headlines This Month
- Olmsted County processes completed 14-license lottery results from 2025
- 🆕 Carlton sets one high-potency retail permit cap with February hearing
- 🆕 Tracy city votes to separate form county cannabis rules
- Robbinsdale approves first cannabis retailer at 4080 West Broadway
- Douglas County caps retail registrations at four stores under state formula
- Alexandria processes new cannabis retail business registration
- East Grand Forks reviews White Earth Nation dispensary application
🏛️ OLMSTED COUNTY – PROCESSING COMPLETED 14-LICENSE LOTTERY RESULTS
The Setup:
Olmsted County is currently processing applications from its completed lottery system that allocated 14 total cannabis retail registrations: 8 microbusiness, 4 standard retail, and 2 mezzobusiness licenses. The microbusiness lottery was held August 7, 2025, mezzobusiness lottery on September 11, 2025, and retail applications closed August 22, 2025.
The Impact:
This represents a completed allocation process in a county covering Rochester and surrounding communities, with clear allocation numbers that limited competition. The lottery ensured fair access and capped supply, creating scarcity value for winners. Olmsted’s population and retail gaps made this a high-value opportunity for operators who won the 2025 drawings.
The Opportunity:
Monitor businesses from the completed lottery as they work toward opening. Some lottery winners have applied for extensions or stepped back, creating opportunities for alternates. Several microbusinesses are on track to potentially open in February 2026, making this a critical month for market entry in the Minnesota cannabis retail market.
Strategic Angle:
Watch for businesses that may not meet their opening requirements, as alternates are standing by. The six-month deadline for some registered businesses is approaching, with possible 90-day extensions available.
🆕 CARLTON – ONE HIGH-POTENCY RETAIL PERMIT CAP ADVANCES TO HEARING
The Setup:
Carlton City Council made a tentative decision on January 14, 2026, to allow only one high-potency cannabis retail permit and five low-potency permits for existing licensed establishments. A public hearing is scheduled for February 11, 2026, to finalize the ordinance. The proposal includes a 1,000-foot school buffer and 500-foot setbacks from daycares and parks, with manufacturing prohibited.
The Impact:
This is a single-license market with strict buffers and no local manufacturing, creating a winner-take-all scenario for one retail operator. Existing licensed establishments get priority for low-potency permits, but the high-potency retail spot is open competition. The February hearing is the last public input opportunity before adoption.
The Opportunity:
If you can meet Carlton’s buffer requirements and secure a compliant site, this is a protected market with no local competition. Identify eligible parcels now and engage with the council before the February 11 hearing to demonstrate readiness and community fit.
Strategic Angle:
Attend the February 11 hearing with a site plan and community support letters. Carlton’s council emphasized starting small and adjusting if demand grows, so showing you can operate responsibly in a constrained market strengthens your case.
🆕 TRACY – NEW MARKET ALERT – CITY VOTES TO SEPARATE FROM COUNTY CANNABIS RULES
The Setup:
Tracy City Council voted 5-2 on January 15, 2026, to pursue its own cannabis ordinance separate from Lyon County’s two-site cap. A public hearing is scheduled for February 9, 2026. An out-of-state operator with California and New York operations is seeking a building in Tracy.
The Impact:
Ground-floor opportunity in newly opening market. Tracy (population ~2,100) transitions from prohibited to potentially allowed, opening a previously closed jurisdiction. Lyon County’s cap restricted Tracy access; local control removes that barrier. Marshall already has retail 15 miles away, proving regional demand. Tracy’s decision creates a greenfield opportunity for the first mover.
The Opportunity:
Ground-floor opportunity in newly opening market. Tracy’s small size and limited nearby retail create strong capture potential. Site selection is critical – identify compliant locations now before the ordinance passes and competition heats up. The interested California/New York operator signals institutional confidence and may drive up site costs if you wait. First local applicant to secure property and build community relationships wins.
Strategic Angle:
Act fast – early entrants typically secure best sites. Contact Tracy city staff before February 9 to understand buffer requirements and preferred zones. Attend the hearing to gauge council sentiment and demonstrate local commitment. Secure a site option now – waiting until ordinance passage means competing with established operators.
🏪 ROBBINSDALE – FIRST CANNABIS RETAILER APPROVED AT 4080 WEST BROADWAY
The Setup:
Robbinsdale City Council voted 3-0 on January 6, 2026, to approve a tentative application for Starlight Company at 4080 West Broadway, Suite 117A. Staff confirmed the site exceeds the 300-foot school buffer from Sacred Heart School. Approval is contingent on Minnesota Office of Cannabis Management state licensure.
The Impact:
This is Robbinsdale’s first cannabis retail approval, signaling the city is open for business and has a functioning review process. The 300-foot buffer is less restrictive than many jurisdictions, and the tentative approval model ties local and state licensing steps together, creating a clear path to opening.
The Opportunity:
Robbinsdale is a metro suburb with no existing retail competition and a demonstrated willingness to approve applications. If Starlight opens successfully, the city may approve additional locations. Monitor OCM licensing timelines and identify additional compliant sites in Robbinsdale’s commercial corridors.
Strategic Angle:
Reach out to Robbinsdale city staff now to understand buffer compliance and application requirements. First-mover advantage in metro suburbs is significant because site availability shrinks fast once the first store opens.
🏛️ DOUGLAS COUNTY – RETAIL REGISTRATION CAP SET AT FOUR STORES
The Setup:
Douglas County Board of Commissioners approved Resolution 2601 on January 6, 2026, establishing a maximum of four adult-use cannabis retail business registrations based on the state formula of one registration per 12,500 residents. The resolution sets an administrative cap with no local tax revenue share.
The Impact:
Four retail registrations define near-term capacity in Douglas County’s unincorporated areas, with no additional slots until population growth triggers a formula increase. This is a hard ceiling that creates competitive pressure among applicants and limits oversupply.
The Opportunity:
Four slots in a county covering Alexandria and rural communities means targeting underserved areas with population density and minimal travel distance to existing retail. County registration is straightforward once you have state approval and zoning compliance.
Strategic Angle:
File your Douglas County registration as soon as you have OCM preliminary approval. The four-cap means first-come advantage, and county staff confirmed limited local authority to adjust the formula.
🏛️ ALEXANDRIA – CANNABIS RETAIL BUSINESS REGISTRATION PROCESSED
The Setup:
Alexandria City Council processed a cannabis retail business registration submission and approved lower-potency hemp edible retail registrations at its January 12, 2026 meeting. The city is accepting and processing Minnesota cannabis retail applications under its established ordinance.
The Impact:
Alexandria has an active registration pathway with no moratorium or lottery delays. Processing registrations in January signals the city is operationally ready and moving applications through review without extended timelines.
The Opportunity:
Alexandria is a regional hub in Douglas County with established retail infrastructure and a functioning registration process. If you have OCM preliminary approval and a compliant site, Alexandria offers a faster path to opening than jurisdictions still drafting ordinances.
Strategic Angle:
Submit your Alexandria registration now if you have state approval. The city is processing applications in real time, and early entries secure sites before competition increases.
🤝 EAST GRAND FORKS – WHITE EARTH NATION DISPENSARY APPLICATION UNDER REVIEW
The Setup:
East Grand Forks City Council discussed White Earth Nation’s application to convert a former Burger King at 926 Central Ave NW into a cannabis dispensary at a January 13, 2026 work session. The city is reviewing permits and awaiting legal guidance on whether the state’s May 2025 compact with White Earth Nation affects the city’s two-dispensary cap.
The Impact:
This is a test case for how tribal-state compacts interact with local caps. If White Earth’s application proceeds outside the two-cap limit, it expands total retail capacity in East Grand Forks and sets precedent for other tribal operators in capped jurisdictions. The city has not issued permits yet, holding applications pending legal clarity.
The Opportunity:
Watch how East Grand Forks resolves this question because it affects tribal expansion strategies statewide. If the compact exempts tribal retailers from local caps, tribal partnerships become a pathway to enter otherwise-closed markets.
Strategic Angle:
Monitor the legal determination and city council decision in Q1 2026. If tribal compacts override local caps, prioritize partnerships with tribes holding signed state agreements.
See below for available compliant retail real estate in Minnesota
Capped markets (confirmed registrations still available with city):
Big Lake
5,550 sq ft | 1 retail registration available | Great location
255k residents, $108k avg income within 20 min
Lease assignment available | $11,440 mo lease
This is a stand alone building with 85 parking spaces on a road with 18k traffic counts. It’s currently a restaurant.
Chaska
2,229 sq ft | 1 retail registration available | Great location
158k residents, $137k avg income within 10 min
Lease assignment available | $4,722 mo lease
This is a stand alone buildling with 30 parking spaces on a road with 28k traffic counts at the corner. It’s in a very affluent area with 137k average household income
Elk River
2,761 sq ft | 3 license cap | Great freeway visibility
115k residents, $116k avg income within 10 min
Purchase option assignment available | In contract for $950,000
This stand alone buildling has freeway visibilty with 40k cars passing by each day. The site has 25 parking spaces and great demographics in an affluent area.
St. Joseph
2,400 sq ft | 1 license cap | Great freeway visibility
191k residents, $79k avg income within 20 min
Lease option available | $2,500 mo lease
Only 1 license remains in this city with limited real estate. Move quickly to secure a license in this market.
Oakdale
3,141 sq ft | 3 license cap | Great freeway visibility
398k residents, $93k avg income within 10 min
Lease option available | $12,850/mo lease
Kenyon
3,840 sq ft | Main street location | Cap of 4 licenses in county
80k residents, $89k avg income within 20 min
Lease option available | $3,000/mo lease
Blue Earth
2,160 sq ft | 1 license cap | On Main St
26k residents, $73k avg income within 20 min
Lease option available | Lease rate: $2,000/mo lease
Uncapped Markets:
Burnsville
4,298 sq ft | No license cap | Great location
392k residents, $109k avg income within 10 min
Lease assignment available | $9,162 mo lease
This is a stand alone buildling with 30 parking spaces on a road with 20k traffic counts. It’s in a very affluent area with great demographics.
Sartel
2,562 sq ft | No license cap
175k residents, $78k avg income within 20 min
Lease option assignment available | $5,000 mo lease
This is a multi tenant strip center with highway visibilty between two main roads with more than 20k cars passing by each day. The site has more than 70 shared parking spaces.
Paynesville
2,990 sq ft | No license cap | Great freeway visibility | Former McDonalds
55k residents, $87k avg income within 20 min
Lease option available | $7,475 mo lease
Faribault
2,838 sq ft | Downtown with great walking traffic | 7k traffic counts
117k residents, $90k avg income within 20 min
Lease option available | $5,500 mo lease
Glenwood
2,676 sq ft (plus basement) | No license cap | Stand alone with large parking
48k residents, $78k avg income within 20 min
Lease option available | $4,850/mo lease
Belle Plaine
6,755 sq ft | No license cap | 20k traffic | 100 parking spaces
182k residents, $117k avg income within 20 min
Lease assignment available | $10,132/mo lease
Hibbing
3410 sq ft | No license caps | Next to Walmart
37k residents, $65k avg income within 20 min
Lease assignment available | $6,820/mo lease
Hutchinson
4,598 sq ft | No license caps I Next to Walmart | 12,000 daily traffic
40k residents, $82k avg income within 20 min
Lease assignment available | $9,196/mo lease
Clearwater
3,768 sq ft | No cap on licenses | Stand alone heavy retail
45k residents, $97k avg income within 10 min
Lease assignment available | $7,536/mo lease
Contact us if interested in any of the locations above.
Available Minnesota Cannabis Licenses
Minnesota Social Equity Micro Businesses at $25,000
General Micro Businesses at $35,000
Mezzo Business Social Equity at $250,000
Mezzo Business General for $500,000
General Retail for $250,000
Social Equity Retail for $150,000
General Cultivation Licenses for $400,000
General Manufacturing Licenses at $500,000
General Transportation License at $300,000
General Wholesale License at $300,000
General Delivery License at $150,000
Contact us if interested in any of the locations above.
The Bottom Line
Minnesota cannabis retail is moving from framework-building to active licensing and registration in January 2026, with Olmsted County processing completed lottery results, Robbinsdale’s first approval, and Carlton’s single-permit cap defining near-term opportunities. Douglas County’s four-cap resolution and Alexandria’s live registration processing show metro and greater Minnesota jurisdictions are operationalizing state law at different speeds. Retailers must track jurisdiction-specific caps, buffers, and completed lottery results because markets are filling based on 2025 selections and single-license towns create winner-take-all dynamics. Tribal compacts like White Earth Nation’s East Grand Forks application could reshape how caps work, so watch legal determinations in Q1. February will bring Carlton’s hearing, potential Olmsted County business openings from lottery winners, and continued processing of state applications. The state’s OCM licensing system continues processing applications from the 2025 cycles as businesses work toward operational status.
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