Why Commercial Real Estate Specialists Are Winning Cannabis and Student Housing Deals Other Brokers Avoid

Written by:

Rudi Davis

Date:

10 Mar 2026

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The commercial real estate market is splitting into two distinct segments: routine, commoditized transactions and specialized opportunities that demand deep regulatory knowledge. The split is creating an advantage for brokers willing to take on deals that most agents avoid due to regulatory complexity. Jason Horowitz, Broker of Record at Triforce Commercial Real Estate, notes that cannabis retail leasing and student housing are two categories where few agents participate. The barrier is the constant regulatory change and compliance burden these deals require. The difficulty of these transactions concentrates opportunity among the few specialists willing to master the regulatory requirements.

“If it were easy, everyone would do it, but there’s a lot of opportunity in what’s difficult,” Horowitz says. Horowitz notes that clients increasingly seek out specialized brokers for these challenging deals because few others have the expertise to complete them.

The trend demonstrates how competitive advantage in commercial real estate is shifting from broad, generalist approaches to narrow specialization. When markets are growing rapidly, generalists can thrive because deal volume is high and competition is limited. As markets mature and competition increases, firms that develop expertise in complex niches gain access to deals that others cannot or will not pursue.

Why Most Brokers Avoid Complex Deals and What That Means for Specialists

The main barrier to entry in specialized asset classes is not money or industry connections, but the willingness to invest time in learning regulatory frameworks that change frequently. Cannabis retail requires understanding local zoning restrictions, state licensing, and operational rules that vary by jurisdiction. Student housing demands familiarity with university enrollment trends, academic calendars, and housing policies that differ from standard multifamily properties.

“A lot of agents don’t want to take the time to learn the rules and regulations that consistently change. Most agents want to find an easy deal,” Horowitz says.

As a result, difficult deals flow to a small pool of specialists. Property owners facing regulatory or operational challenges have limited options and are willing to pay more for brokers who can navigate those complexities. The dynamic creates better economics for specialists: less competition and higher fees for expertise that goes beyond basic transaction facilitation.

Brokers who pursue the specialization strategy must invest in learning and relationship-building that may not generate immediate income. The approach often means passing up straightforward deals to focus on more complicated ones. Most brokers lack the patience or resources to make the long-term investment required, which is why opportunities in complex asset classes remain concentrated among a small group of specialists.

Why Investment Sales Are Shifting Toward Owner-Users in a High-Rate Environment

Horowitz reports that investment sales have slowed as buyers struggle to make deals work at today’s higher interest rates. His firm has seen a clear shift toward owner-user transactions, where buyers plan to occupy the property rather than hold it strictly for investment. The shift reflects broader challenges in investment underwriting. Projected cash flows based on estimated rents, what Horowitz calls pro formas, are no longer convincing buyers.

“Most of my sales have been owner-user lately. I’m interested in actual income, not just estimates of what the rent might be,” Horowitz says.

The distinction between actual and projected income matters because it shows buyers are discounting future rent growth and focusing on current cash flow. With elevated interest rates and economic uncertainty, buyers are unwilling to pay for potential income that may not materialize. Sellers must now demonstrate actual, in-place income rather than rely on optimistic projections.

The shift toward owner-users indicates that the investment market is undergoing a repricing. Properties that were once sold to investors at higher prices based on projected rent growth are now trading at prices reflecting current use. Landlords may need to adjust their expectations about the value of their properties in this environment.

How Ongoing Regulatory Monitoring Gives Cannabis and Student Housing Specialists a Competitive Edge

Triforce Commercial Real Estate has positioned itself in cannabis retail and student housing by committing to ongoing regulatory monitoring. Regulatory monitoring is not a one-time effort but a continuous process of staying current as rules evolve. The payoff is a strong competitive position: other firms cannot easily replicate the expertise without making a similar commitment.

“We’ve found ourselves in an interesting situation where we’re doing several cannabis deals of all sorts. We’re monitoring those trends and changes,” Horowitz says.

In routine transactions, clients have many choices, which drives down fees. In complex transactions, fewer options exist, allowing specialists to command higher margins.

Looking ahead, it remains to be seen whether these niches will stay underserved or attract more competition. If cannabis retail and student housing become mainstream, with standardized processes, the specialist advantage may diminish. For now, regulatory complexity and constant change are keeping most brokers on the sidelines.

How One Commercial Brokerage Built a Niche Practice in High-Complexity Asset Classes

Triforce Commercial Real Estate, active in New York, New Jersey, Delaware, and Pennsylvania, with about 90 listings, has built its position by taking on deals that other brokers avoid. The firm’s willingness to master complex regulatory environments has generated business in cannabis retail, student housing, and other emerging sectors. The firm is positioned to benefit as these asset classes mature and transaction volume grows.

The firm’s experience shows that market participants willing to accept short-term uncertainty and invest in specialized expertise are likely to outperform as the market matures. The approach requires a business model that prioritizes depth over breadth, accepting fewer transactions in exchange for higher margins and less competition. Most brokers are not structured for this approach, leaving significant opportunity for those who are.

As regulatory frameworks and buyer priorities continue to evolve, the real estate market is rewarding those who can solve the most difficult problems. Specialist firms that commit to ongoing learning and regulatory expertise are positioned to capture the deals and the fees that others cannot.