Choosing the right commercial real estate location in Maryland involves much more than finding a property with enough square footage at an acceptable price.

A location can affect customer access, employee recruitment, transportation costs, parking, deliveries, visibility, zoning compliance and the ability of a business to expand.

More importantly, the factors that make a location attractive depend heavily on the business occupying the property. A retailer, medical practice, warehouse operator and professional office user can evaluate the same location very differently.

Start With the Business — Not the Building

Before searching for commercial properties, define what the business actually needs from its location.

Consider questions such as:

• Who are the customers?
• Where do the employees live?
• Will customers visit the property?
• Will trucks or delivery vehicles use the site?
• Does the business depend on drive-by visibility?
• How much parking is needed?
• Is public transportation important?
• Does the business require loading?
• Is outdoor storage necessary?
• How much space will the company need in three to five years?

Answering these questions before touring properties can prevent a business from spending time evaluating locations that do not fit its operation.

1. Verify Zoning Before Falling in Love With the Property

One of the most important location considerations is whether the proposed business use is permitted at the property.

Maryland’s local jurisdictions exercise substantial land-use and zoning authority. That means zoning classifications and permitted-use rules can vary from one county or municipality to another.

A property being advertised as commercial, industrial, retail or warehouse space does not automatically mean every business within that broad category can legally operate there.

2. Understand Where Your Customers Are

For businesses that depend on customers visiting the property, location can directly affect revenue potential.

Depending on the business, useful market information can include:

• Population
• Household characteristics
• Income
• Age
• Employment
• Consumer characteristics
• Daytime population
• Nearby businesses

The appropriate trade area varies by business. A neighborhood convenience business may draw customers from a relatively small radius, while a specialty medical practice or destination retailer may attract customers from a much larger area.

3. Evaluate Traffic Counts

Traffic volume can be important for retail, restaurants, automotive businesses and other customer-facing operations.

The Maryland State Highway Administration publishes traffic volume information using Annual Average Daily Traffic, commonly referred to as AADT.

Traffic counts can help estimate how many vehicles travel a roadway, but the number should not be analyzed in isolation.

Also consider:

• Whether drivers can see the property
• Whether traffic can easily enter the property
• Direction of traffic
• Traffic signals
• Median restrictions
• Turning movements
• Congestion
• Road speed

4. Visibility Matters — But Not for Every Business

Visibility can be extremely valuable for businesses that depend on spontaneous customer visits.

Examples can include:

• Restaurants
• Retail stores
• Convenience businesses
• Automotive businesses
• Salons
• Fitness businesses

However, visibility may be less important for businesses whose customers schedule appointments or whose operations are primarily distribution, administrative or industrial.

5. Evaluate Ingress and Egress

Ingress refers to entering a property. Egress refers to leaving it.

Access can significantly affect how well a commercial property functions.

Evaluate:

• Number of entrances
• Traffic signals
• Left-turn access
• Median restrictions
• Driveway width
• Shared entrances
• Truck access
• Potential congestion

Visit the property at different times of day when access is particularly important to the business.

6. Determine How Much Parking You Really Need

A property may have sufficient interior space but still fail operationally because it does not have enough parking.

Parking requirements vary considerably by business.

Consider:

• Number of employees
• Number of customers or patients
• Peak occupancy
• Shared parking arrangements
• Delivery vehicles
• Accessible parking
• Local zoning requirements

7. Consider Employee Access

A commercial location also needs to work for the people who operate the business.

Depending on the workforce, consider:

• Commute times
• Highway access
• Public transportation
• Parking
• Nearby housing
• Restaurants and services
• Labor availability

A location that creates a difficult commute for a large portion of the workforce can affect recruitment and employee retention.

8. Consider the Available Labor Pool

For businesses employing significant numbers of workers, the local labor pool can be a major site-selection consideration.

Depending on the operation, investigate:

• Workforce size
• Education
• Skills
• Occupational concentration
• Wage levels
• Nearby colleges and training institutions
• Transportation access

Maryland Commerce provides data tools businesses can use to explore demographics, businesses, talent and location comparisons throughout the state.

9. Highway Access

Highway proximity can be important for both employees and commercial transportation.

Depending on the business, access to major Maryland and regional routes may affect:

• Delivery times
• Employee commute
• Customer access
• Distribution costs
• Service territory

However, proximity on a map does not always equal convenient access.

A property may be physically close to a highway but require several miles of local-road travel before reaching an interchange.

10. Industrial and Logistics Location Factors

Industrial users often evaluate locations very differently from retailers and office users.

Potential priorities include:

• Interstate access
• Truck routes
• Loading docks
• Drive-in doors
• Truck court depth
• Trailer parking
• Outdoor storage
• Port access
• Rail access
• Airport access
• Utility capacity
• Labor availability

11. Consider Proximity to the Port, Airport or Rail

Transportation infrastructure can be a major consideration for logistics, distribution, manufacturing and import/export businesses.

Depending on the operation, a company may evaluate proximity to:

• Port facilities
• Baltimore/Washington International Thurgood Marshall Airport
• Rail infrastructure
• Interstate highways
• Regional distribution routes

The relevant factor is not simply mileage. Travel time, truck restrictions, tolls, congestion and route reliability can also matter.

12. Evaluate Nearby Businesses

Neighboring businesses can either strengthen or weaken a location.

For retail businesses, nearby companies can generate customer traffic and create complementary shopping patterns.

For industrial businesses, nearby suppliers, contractors, transportation providers and related businesses may improve operating efficiency.

But incompatible neighboring uses can also create problems involving:

• Traffic
• Noise
• Parking
• Customer perception
• Truck congestion

13. Study the Competition

The presence of competitors does not automatically make a location bad.

Competition can sometimes demonstrate that a market already supports the business category.

The more useful questions include:

• How many competitors operate nearby?
• How large are they?
• Who are their customers?
• Is the market underserved or saturated?
• What differentiates your business?

Market analysis should be specific to the business rather than based simply on the number of competitors visible on a map.

14. Understand the Total Occupancy Cost

A low asking rent does not necessarily mean a location is inexpensive.

For leased property, total occupancy cost can include:

• Base rent
• CAM charges
• Property tax reimbursements
• Insurance reimbursements
• Utilities
• Maintenance
• Parking charges
• Annual rent escalations

15. Evaluate Property Taxes and Operating Expenses

For buyers and investors, the cost of owning a commercial property extends beyond the mortgage payment.

Consider:

• Real estate taxes
• Insurance
• Utilities
• Maintenance
• Repairs
• Property management
• Common-area expenses

Operating costs can differ between jurisdictions and properties, so two buildings with similar purchase prices may have substantially different ownership costs.

16. Check Utilities and Infrastructure

A property must have infrastructure capable of supporting the proposed operation.

Depending on the business, investigate:

• Electric service
• Natural gas
• Water
• Sewer
• Internet and telecommunications
• Stormwater infrastructure

Industrial, restaurant, medical, laboratory and manufacturing users may have requirements that exceed the capacity of an ordinary commercial building.

17. Evaluate Signage

For customer-facing businesses, signage can be almost as important as the building itself.

Investigate:

• Building signage
• Monument signage
• Directory signage
• Road visibility
• Sign restrictions
• Landlord approval requirements
• Local sign regulations

A highly visible property may provide limited marketing value if the business cannot install effective signage.

18. Visit the Location at Different Times

A single property tour provides only a snapshot.

When appropriate, visit the area:

• During morning rush hour
• At lunchtime
• During evening rush hour
• On weekends
• During the business’s expected peak period

This can reveal traffic, parking, access and activity patterns that may not be obvious during a scheduled showing.

19. Consider Future Growth

The location should support the business not only today but, when possible, for the expected occupancy period.

Ask:

• Can the business expand within the building?
• Is adjacent space potentially available?
• Can additional employees be accommodated?
• Is parking sufficient for growth?
• Can additional equipment be installed?
• Will the location still work if sales increase substantially?

Moving a business can be expensive. A property that provides reasonable room for growth may have strategic value.

20. Research Planned Development Around the Property

Commercial locations do not remain static.

Future development can affect:

• Traffic
• Population
• Competition
• Road access
• Property values
• Customer demand

Local comprehensive plans, development proposals and transportation projects can provide useful context when evaluating the long-term potential of a location.

21. Compare Multiple Locations Using the Same Criteria

Avoid making a location decision based entirely on emotion after seeing one attractive property.

Create a consistent comparison framework.

Location Priorities by Commercial Property Type

Maryland Commercial Location Checklist

Common Commercial Location Mistakes

• Choosing a property based only on price.
• Assuming the advertised use means the business is permitted by zoning.
• Looking at square footage without evaluating parking.
• Ignoring ingress and egress.
• Paying for premium visibility when the business does not need it.
• Ignoring employee commute and labor availability.
• Looking at highway distance without testing the actual route.
• Ignoring truck circulation at industrial properties.
• Comparing base rent instead of total occupancy cost.
• Failing to consider future expansion.

Commercial Location FAQs

This article is provided for general informational and educational purposes only and does not constitute legal, zoning, financial, engineering, transportation, demographic or investment advice. Zoning, permitted uses, traffic conditions, demographics, property characteristics and other location factors can change and vary by jurisdiction and property. Buyers and tenants should independently verify material information with the appropriate government agencies and qualified professionals before making a commercial real estate decision.