NY Monthly Puff: 280E Litigation Advances as OCM Tracks $3.9M in Delinquencies
September brought sharp movement in New York as OCM revealed that 12% of licensed retailers now sit on the cash-on-delivery list with nearly $3.9 million in unpaid supplier invoices. Enforcement stayed active in Cohoes and Syracuse, and a new wage survey showed most licensees paying above-average pay while still posting losses. Plus, we currently have several high revenue shops in Manhattan grossing over $6M available for sale off market right now. See below.
Top Headlines This Month
- 87 retailers owe $3.89M as Metrc COD reporting goes live
- OCM raids two unlicensed Cohoes shops after complaints
- Cannabis wages beat state average but 57% post losses
- Upstate New York shop closed for cannabis sales to 15-year-olds
- Multiple retail locations available for acquisition
New York: OCM Tracks $3.9M in Retailer Delinquencies as Metrc COD Reporting Goes Live
At OCM’s September 10 Cannabis Advisory Board meeting, the agency reported that 87 retailers, roughly 12% of the retail licensee base, are on the cash-on-delivery list with approximately $3.89 million in delinquent obligations owed to 44 suppliers. The average listed retailer owes about $45,000 across nearly 10 invoices, and average delinquencies run approximately 281 days, more than nine months past the 30-day credit term. COD reporting and invoice tracking have moved into Metrc, shifting from an email-and-survey process to one tied directly to inventory transfers, giving OCM transaction-level visibility into payment compliance. The meeting also addressed ownership change functionality described as very close, with more detail expected this fall; nursery license applications targeted to go online around November 5, 2026, pending an October 1 Cannabis Control Board vote; and a modular rewrite of adult-use regulations, with changes planned for release in separate packages rather than a single omnibus revision. OCM reported more than 2,300 licensed adult-use businesses, including 917 retailers and 361 microbusinesses, with approximately 709 retail stores currently open, 160 of which opened in 2026. Cumulative adult-use sales stand at approximately $3.9 billion, with about $1.2 billion through August 2026. On enforcement, OCM reported seizing more than $17 million in illicit cannabis products and equipment in a joint operation with the Greece, New York, Police Department in the Rochester area, described as its largest seizure to date. The Metrc integration connects delinquency data directly to underlying transactions rather than relying on self-reporting, giving OCM a more structured view of payment trends across the supply chain. OCM framed the delinquency situation as a market-stability issue, particularly for smaller cultivators, processors, distributors and microbusinesses with limited financing access. The modular rulemaking approach means licensees can expect multiple separate comment periods in the coming months, covering areas including cultivation, microbusinesses, administration, and enforcement.
Source:
https://vicentellp.com/insights/new-york-cab-meeting-cod-reporting-metrc-transfers-nursery-licenses/
Cohoes: OCM Raids Two Unlicensed Cannabis Retailers After Community Complaints
Cohoes Police Department received multiple complaints on September 16 about suspected illegal cannabis activity at two businesses: Krunchy Deli at 45 White St. and Smoke Rite 3 at 125 Main St. After confirming unlicensed cannabis sales at both locations, police contacted OCM’s Enforcement and Investigations Division. After search warrants were executed, OCM inspected both businesses, issued Notices of Violation for unlicensed cannabis sales, and seized all illicit cannabis found on site. Neither location was sealed based on the evidence gathered during the inspections, though officials noted that additional enforcement action may follow if illegal activity continues. The Cohoes actions came directly from community complaints, showing that local residents are a channel for triggering OCM field activity. No accusations of sales to minors were made and no adverse health events were documented at either location.
New York: Cannabis Licensees Pay Above-Average Wages but Most Report Net Losses
FTI Consulting surveyed more than 40 New York cannabis licensees collectively employing over 1,400 workers and found that cannabis jobs pay above-average wages across all nine occupation categories studied. Retail dispensary workers average $25.55 per hour, 25% above the New York retail average of $20.47 per hour, and the average cannabis worker earns $25.87 per hour, about 19% more than the $21.67 statewide average for comparable occupations. Labor costs represent approximately 22% of gross revenue for cannabis businesses, close to the 23% statewide average across all sectors. Yet 57% of the 42 licensees who reported profitability data posted net losses in their most recent fiscal year, and 79% of those losing money had been doing so for an average of 15 months. Only 36% of respondents reported turning a profit. The survey was conducted as New York Senate Bill 10643, introduced in June 2026, proposes replacing the current labor peace agreement requirement with a three-member Cannabis Industry Wage Board tasked with issuing minimum wage recommendations by December 31, 2027. The findings show a sector paying competitive wages while most businesses are not yet profitable. Section 280E limits on expense deductions, regulatory compliance costs, and competition from the illicit market create a cost structure that licensed cannabis retailers carry beyond what comparable businesses in other industries face.
Upstate New York: Unlicensed Cannabis Shop Shut Down for Sales to Minors as Young as 15
Camillus Police Department closed Greenhouse Convenience of CNY at 3329 Milton Ave. in the Syracuse area following an investigation into alleged cannabis sales to minors as young as 15 years old. On August 18, law enforcement executed a search warrant and, alongside OCM officials, seized 2.2 pounds of cannabis flower, 225 grams of cannabis edibles, and 716 grams of cannabis concentrate. The business was operating without a valid OCM license. No arrests were announced at the time of publication and the investigation remains ongoing. The closure reflects OCM’s coordination with local police departments on enforcement against unlicensed cannabis retail. Sales to individuals under 21 are prohibited under New York law, and the allegations of sales to minors add a public safety dimension to what would otherwise be a straightforward licensing violation.
Cannabis Business Deals – New York
Park Slope, Brooklyn
Asking: $3,000,000
- Open just over 12 months with $2.6M in gross revenue over the last 12 months and increasing.
- Net profit of $850K over the same period.
- Rent is $25,750 per month on a 10+ year lease for a 2,000 sq ft space, with 25K daily traffic count.
Rockland County, NY
Asking: $1,750,000
- Open since November with $1.5M to $1.6M in projected sales for the first 12 months.
- Last month’s net sales were $160K.
- Building is 4,400 sq ft at $12K per month including NNNs, with 10%+ EBITDA and a 28 car parking lot.
- Social equity license fully transferable as of August 27.
Albany, NY
Asking: $2,400,000
- Open since June 2025 with $1.3M+ in total sales through the first 12 months.
- Current revenue run rate is $115K per month and growing month over month.
- 1,700 sq ft Class A buildout at $5,300 per month NNN with 14 years remaining on the lease.
- 46% gross margin with approximately $200K in net income through the first 10 months.
- 11 car on site parking lot and drive thru infrastructure already built and paved.
- Absentee owned with significant upside for an owner operator. Sale includes the operating business and licenses.
Bronx, NY
Asking: $1,999,999
- Operational for approximately 12 months with continued upward momentum as the store matures.
- Projected 2026 gross income of $2,458,492.68 with projected 2026 net income of $512,851.28, representing a 21% profit margin.
- Freestanding building of approximately 6,000 sq ft total, including about 2,600 sq ft on the ground floor, 2,600 sq ft on a sub leasable second floor, and 600 sq ft basement.
- Annual rent is approximately $360,000, or $30,000 per month, with a long term lease to be established with the buyer.
- Pricing reflects approximately 0.81x projected 2026 gross income and approximately 3.9x projected 2026 net income.
Kingston, NY
- Operational store where the owner is looking for an operational partner to step in through a management agreement, run day to day operations, and take over the business.
- Terms to be negotiated, with the intention for the new operational partner to own the business at the end of the agreement.
- A strong fit for someone looking to get into an operating store without a full upfront purchase.
Peekskill, NY
Asking: $1,800,000 (recently reduced)
- Last 12 months revenue was $2.8M with EBITDA over $200K, excluding owner salaries.
- Sellers have just reduced price on this opportunity in order to move quickly.
The Bottom Line
September made clear that New York cannabis is evolving fast as OCM is gaining sharper visibility into payment failures through Metrc. Wages are competitive, most licensees are still losing money, and enforcement against unlicensed shops continues in both upstate cities and suburban corridors.
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