NEW YORK CANNABIS RETAIL MARKET UPDATE – JANUARY 2026
New York cannabis retail is accelerating in January 2026.
Watertown just approved its first dispensary after years without local retail, seven applications are advancing through New York cannabis retail markets via NYC community boards this month, and Babylon in Long Island has a February hearing on deck related to a potential precedent being set on a shorter setback distance. The state pushed 38 new adult-use licenses through in late December (10 retail, 4 CAURD final), and retailers face hard Metrc inventory deadlines before the end of March.
New York cannabis retail operators need to track application timelines, lock in compliance dates, and watch upstate markets opening for the first time.
Plus, see the bottom of this post for 8 NY businesses available for acquisition. From paper licenses, to open stores and even distribution licenses.
Top Headlines This Month
- Watertown approves first cannabis retail dispensary after local review
- Seven NYC dispensary applications advance through community boards in January
- State approves 38 new adult-use licenses including 10 retail permits
- Babylon schedules January 29 hearing on Deer Park dispensary with setback variance
- Metrc inventory deadlines hit retailers February 28 and March 31
WATERTOWN – CITY APPROVES FIRST CANNABIS RETAIL DISPENSARY
The Setup:
Watertown’s Planning Board granted final local approval January 7 for the city’s first cannabis dispensary at Eastern Boulevard Plaza, operated by Cannabis Depot owners. State Office of Cannabis Management sign-off is still required before opening.
The Impact:
This approval unlocks a previously closed upstate market – Watertown had no licensed retail before this decision. The operator already runs Cannabis Depot in the Town of Pamelia, so brand recognition and supply chain are in place. Public comments focused on school proximity, but the board moved forward anyway.
The Opportunity:
Watertown is now a first-mover market for cannabis retail – no local competition exists yet. Retailers looking at Jefferson County or nearby Fort Drum areas should monitor when this store opens and gauge demand. Site selection matters here because school buffer concerns came up in public comment.
Strategic Angle:
Reach out to Watertown planning staff now if you’re evaluating sites in the area. The board recommended a State Street zoning change to City Council, so follow that meeting for additional market intel. First stores in new markets set the baseline for community acceptance and customer expectations.
NEW YORK CITY – SEVEN DISPENSARY APPLICATIONS ADVANCE THROUGH COMMUNITY BOARDS
The Setup:
Seven cannabis retail applications are moving through NYC community board reviews in January 2026. Brooklyn CB1 considers two locations January 13, Queens CB9 votes on Cosmic Kush January 13, Manhattan CB8 reviewed two applications January 6, Queens CB2 takes up two more January 14, and Manhattan CB4’s Cannabis Task Force meets January 15.
The Impact:
NYC community boards provide advisory recommendations to the state Office of Cannabis Management, so these sessions signal near-term licensing activity across Brooklyn, Manhattan, and Queens. The volume (seven applications in one month) shows the pipeline is active and moving. Specific addresses are locked in: 1013 Manhattan Avenue and 152 Bedford in Brooklyn, 111-14 101st Avenue in Richmond Hill, 1339 Madison and 1625 Second in Manhattan, 60-11 Roosevelt in Woodside, and 51-02 35th in LIC.
The Opportunity:
If you’re targeting NYC cannabis retail markets, these community board meetings show which neighborhoods are seeing application density. Richmond Hill, Woodside, and the Upper East Side are all in play right now. Track which applications get positive recommendations – that tells you where OCM is likely to issue licenses next.
Strategic Angle:
Attend or watch these meetings virtually to understand community concerns and board attitudes toward new retail. CB8 and CB1 already voted or will vote this week, so check those outcomes before mid-January. If you have a pending NYC application, these reviews give you a preview of what boards care about (site distance, neighborhood fit, applicant background).
STATE CCB – 38 NEW ADULT-USE LICENSES APPROVED INCLUDING 10 RETAIL PERMITS
The Setup:
The New York State Cannabis Control Board approved 38 new adult-use licenses in December 2025, including 10 adult-use retail dispensary licenses and 4 CAURD final licenses. About 44% of approvals went to Social and Economic Equity applicants.
The Impact:
Ten new retail licenses mean ten more dispensaries entering the New York cannabis retail market in the coming months. The state is actively expanding the licensed operator pool – this batch follows earlier rounds and shows OCM is processing applications steadily. CAURD final licenses (4 approved) convert conditional operators to full licenses, which stabilizes those businesses.
The Opportunity:
If you’re a newly approved retailer, move fast on site selection and lease negotiations. The January community board activity shows competition for prime locations is real. If you’re an applicant still in queue, this approval pace suggests OCM is working through the backlog – stay ready to act when your number comes up.
Strategic Angle:
Check OCM’s public license database to see if your market area got any of these 10 new retail licenses. New competitors change your site strategy and timing. Connect with your OCM contact before February to confirm your application status and any outstanding requirements.
BABYLON – JANUARY 29 HEARING ON DEER PARK DISPENSARY WITH SETBACK VARIANCE
The Setup:
The Town of Babylon Zoning Board of Appeals scheduled a public hearing January 29 at 6 PM for a special exception permit allowing a retail dispensary at 786 Grand Boulevard, Deer Park. Applicant MRM Ventures LLC is requesting a residential setback reduction from 750 feet to 460 feet.
The Impact:
Babylon requires special exception permits for cannabis retail, and this application tests the board’s willingness to grant setback variances. The 460-foot radius means nearby residential zones are closer than the standard 750-foot buffer. If approved, it signals Babylon will consider variance requests on a case-by-case basis. If denied, it sets a harder line for future applicants.
The Opportunity:
If you’re looking at Long Island cannabis retail sites, watch this hearing outcome closely. Babylon’s decision will tell you whether the town prioritizes strict buffers or flexible retail access. The hearing is in person only, so attend if you have any Babylon applications in mind.
Strategic Angle:
Prepare your site analysis now if you’re considering Babylon locations. Know your residential setbacks before you commit to a lease. This hearing happens January 29 – results should be public by early February. Use that intel to refine your site search or decide whether to pursue Babylon at all.
STATE OCM – METRC INVENTORY COMPLIANCE DEADLINES HIT FEBRUARY AND MARCH
The Setup:
New York OCM set phased Metrc seed-to-sale compliance deadlines for cannabis retail operators. Distributors can apply Retail Item IDs starting February 1. Dispensaries cannot receive inventory without Retail Item UIDs after February 28. All inventory must show TestPassed or RetestPassed status by March 31.
The Impact:
Missing these deadlines means you can’t receive new product from distributors after February 28 or maintain compliant inventory after March 31. Metrc credentialing and third-party integrator setup are mandatory – this isn’t optional. Retailers still must file weekly inventory reports to OCM during the transition.
The Opportunity:
Get ahead of the February 28 cutoff by credentialing in Metrc now and coordinating with your distributors on Retail Item UID application. If your integrator isn’t ready, find another one before the end of January. Competitors who miss these deadlines will face supply gaps – you can capture their customers if you stay compliant.
Strategic Angle:
Schedule a Metrc setup call with your team and integrator before January 20. Confirm your distributor partners are applying Retail Item IDs starting February 1. Run an inventory audit now to identify any products lacking test status – fix those before March 31. This is operational hygiene, not strategy, but it protects your license.
NEW YORK DEALS
Manhattan Dispensary
Opened Sept 2024 | $4M+ Year 1 projection
Premium location, 98 Walk Score, 1.5M+ nearby population
Long-term lease locked at favorable rate
$3.5M
Hudson Valley Retail
$3.2M+ Year 1 projection on partial-year ops
Strong downtown location with parking
EBITDA positive from Month 1
$3.25M
Standalone NY Retail License
Non-CAURD provisional license
Attach to any compliant location statewide
$550K
NY Distribution License
1 of only 14 issued | 30 total soft cap
Statewide flower + manufactured product rights
Multiple locations permitted
$800K
Queens Location
Month 1: $75K revenue (opened April 2025)
5-year lease + options
$1.5M
College Town Opportunity
Near major universities | 7,700 SF with 60 spaces
Drive-thru capable | Local approvals secured
$695K
Brooklyn Subway Station
$2K–$3K daily | No competition within 3.5 miles
Delivery approved | Seller financing available
$2.75M
Albany-Area CAURD
Owns real estate (sale or leaseback)
$2.85M+ TTM revenue | ~15% EBITDA
Highest traffic counts in market
$2.855M
Brooklyn with Consumption Lounge
$200K/month avg (7 months) | 13% EBITDA
$1M premium buildout | Delivery launched
Owner financing available
$3M
Reach out for more information on the above locations.
The Bottom Line
New York cannabis retail is picking up speed in January 2026. Watertown opened a new upstate market, NYC community boards are processing seven dispensary applications this month, and the state approved 38 licenses (10 retail) in late December. Babylon’s January 29 hearing will test Long Island setback flexibility, and Metrc compliance deadlines hit hard in February and March. Retailers need to track community board outcomes, lock in Metrc credentialing before February 28, and watch for new license announcements from OCM. New markets are opening, competition is growing, and compliance windows are closing.
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