Zoned Properties, Inc.
Moat Score — Zoned Properties, Inc.
Total Moat Score
6 / 30
| Moat Factor | Score | Analysis |
|---|---|---|
| Intangible Assets Patents, trademarks, brand strength, or regulatory licenses that protect a company's products or services from being freely copied by competitors. | 1 / 5 | ZDPY holds no patents or brand power; its only soft asset is accumulated zoning/entitlement know-how for cannabis real estate in Arizona, Illinois and Michigan, which is valuable but not legally protectable. |
| Cost Advantage A durable ability to produce goods or services more cheaply than competitors — through scale, unique access to cheap inputs, location, or process — that lets a company undercut rivals or out-earn them at the same price. | 1 / 5 | As a seven-property micro-cap landlord, ZDPY has no scale-driven cost edge versus larger cannabis REITs like Innovative Industrial Properties; its absolute-net lease structure pushes opex to tenants but does not lower ZDPY's own cost of capital or acquisition costs. |
| Pricing Power The ability to raise prices without losing meaningful business, because the product or service is differentiated, mission-critical, or has few good substitutes. | 1 / 5 | Rents are locked into long-dated absolute-net leases rather than being repriced with market power, and 2025 showed the opposite of pricing power -- two major tenants (Broken Arrow, Woodward) fell into default rather than absorbing rent increases. |
| Network Effect The product or service becomes more valuable to every user as more people or organizations use it, making an established leader harder to displace. | 0 / 5 | A landlord-tenant real estate model generates no network effect; each lease is a bilateral contract and additional tenants do not make existing leases more valuable. |
| Switching Costs The money, time, or operational disruption a customer would face switching to a competitor, which locks in existing customers and supports renewals. | 2 / 5 | Licensed cannabis tenants face real switching costs -- relocating a state-licensed cultivation or dispensary facility requires re-entitlement and re-licensing -- but this is a property-level lock-in rather than a ZDPY-specific advantage, and defaulting tenants show it isn't absolute. |
| Efficient Scale A market that can only profitably support a small number of players, so incumbents face limited threat from new entrants even without other defenses. | 1 / 5 | ZDPY's seven-property, three-state footprint is too small to constitute an efficient-scale niche that deters entry; well-capitalized cannabis REITs can and do enter the same local markets. |