Company: IIPR
Filing Date: 2025-02-21
Form Type: S-3ASR
Source: 0001104659-25-016184
Chunk: 97

Company: INNOVATIVE INDUSTRIAL PROPERTIES INC
Filing Date: 2025-02-21
Form: S-3ASR
Chunk 97
---
their tax advisors regarding the potential effects of legislative, regulatory, or administrative developments on an investment in our
shares.

<div align='center'>51

ERISA CONSIDERATIONS</div>

The following is a summary of some considerations
associated with the purchase and holding of our securities by (i) an employee benefit plan (as defined in Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) that is subject to Title I of ERISA), (ii) a
plan (as defined in Section 4975 of the Code) that is subject to Section 4975 of the Code (including IRAs and Keogh plans) or
(iii) any entity deemed to hold plan assets of any of the foregoing by virtue of the plan’s investment in the entity (each
such plan, account and entity described above is referred to herein as a “Plan”), or any employee benefit plan that is subject
to any federal, state, local or other law that is substantially similar to the foregoing provisions of ERISA and the Code (“Similar
Law”). This summary is based on current provisions of ERISA and the Code, each as amended through the date of this prospectus, and
the relevant regulations, opinions and other authority issued by the Department of Labor and the Service. We cannot assure you that there
will not be adverse tax or labor decisions or legislative, regulatory or administrative changes that would significantly modify the statements
expressed herein. Any such changes may apply to transactions entered into prior to the date of their enactment.

General Fiduciary Obligations

Under ERISA and the Code, a person generally
is a fiduciary with respect to a Plan if, among other things, the person has discretionary authority or control over the administration
of the Plan or the management or disposition of Plan assets or provides investment advice for a fee or other compensation (direct or
indirect) with respect to the Plan. Each fiduciary of a Plan subject to ERISA (such as a profit sharing, Section 401(k) or
pension plan) or any other retirement plan or account subject to Section 4975 of the Code, such as an IRA, seeking to invest plan
assets in our securities must consider, taking into account the facts and circumstances of each such Plan, among other matters:

| · | whether the investment is consistent                  
 with the applicable provisions of ERISA and the Code; |

| · | whether, under the facts and