Finding commercial real estate is relatively easy. Finding commercial real estate that actually works for the business is much harder.

A property can have an attractive price, excellent appearance and convenient location while still being unsuitable because of zoning, parking, access, building configuration, utilities or renovation requirements.

That is why choosing commercial property in Maryland should begin with the requirements of the business — not simply with available listings.

Start With the Business — Not the Building

Before searching for commercial property, define what the business actually needs.

A useful property requirement profile may include:

• Preferred Maryland counties or cities
• Purchase or lease
• Maximum budget
• Minimum and maximum building size
• Lot size
• Parking requirements
• Zoning/use requirements
• Customer access
• Truck access
• Loading requirements
• Ceiling height
• Drive-in or dock doors
• Electrical capacity
• Water and sewer requirements
• Outdoor storage
• Signage
• Visibility
• Expansion potential

The more clearly these requirements are defined, the more efficiently unsuitable properties can be eliminated.

1. Determine Whether You Should Buy or Lease

One of the first decisions is whether the business should purchase or lease commercial space.

Buying may provide:

• Long-term control of the property
• Potential equity accumulation
• Greater control over certain improvements
• Potential investment value

Leasing may provide:

• Lower initial capital requirements in some transactions
• Greater flexibility
• Ability to relocate more easily
• Reduced responsibility for certain property-level matters depending on the lease

Neither option is automatically better.

The appropriate choice depends on the business, financing, growth plans, available capital and real estate market.

2. Establish the Real Occupancy Budget

Do not evaluate commercial property based solely on the advertised rent or purchase price.

A commercial occupancy budget may need to consider:

• Base rent or mortgage payment
• Property taxes
• Insurance
• CAM or NNN expenses
• Utilities
• Maintenance
• Repairs
• Property management
• Renovations
• Tenant improvements
• Moving expenses
• Furniture and equipment
• Closing costs

3. Choose the Right Location

“Good location” means different things for different businesses.

A successful retail location may need visibility and customer traffic.

A warehouse may prioritize highway access, truck circulation and proximity to distribution routes.

A medical office may prioritize population, parking and accessibility.

A contractor may prioritize yard space and industrial zoning.

Therefore, location should be evaluated based on the business model.

Location Factors to Consider

4. Verify the Zoning

Zoning is one of the most important filters in a commercial property search.

Maryland land-use regulation is largely administered at the local level, so zoning classifications and permitted uses vary among counties and municipalities.

A buyer or tenant should determine:

• The property’s zoning classification
• Whether the intended use is permitted
• Whether special approval is required
• Whether the current occupancy is legally established
• Whether parking requirements can be satisfied
• Whether outdoor storage is allowed
• Whether signage is permitted
• Whether future expansion is feasible

5. Determine How Much Building Space You Actually Need

Commercial buyers and tenants sometimes begin with an arbitrary square-footage target.

A better approach is to determine what activities must fit inside the building.

Consider:

• Number of employees
• Private offices
• Conference rooms
• Customer areas
• Storage
• Production areas
• Warehouse space
• Restrooms
• Break rooms
• Mechanical areas
• Circulation space
• Future expansion

Usable Space vs. Total Building Size

Two buildings with the same square footage may function very differently.

A 10,000-square-foot building with an efficient open layout may provide more useful space for a particular business than a 12,000-square-foot building containing numerous corridors, small rooms and structural obstructions.

6. Evaluate the Interior Layout

Square footage alone does not tell you whether a property works.

Evaluate:

• Open vs. partitioned space
• Column spacing
• Ceiling height
• Number of floors
• Elevators
• Restrooms
• Entrances and exits
• Loading areas
• Office-to-warehouse ratio
• Accessibility
• Potential reconfiguration

7. Understand Clear Height for Industrial Property

For warehouse and industrial users, building height can be critical.

The relevant measurement is often the usable clear height inside the building.

Higher clear heights may allow more efficient vertical storage and racking.

A distribution company should therefore evaluate cubic capacity and warehouse configuration rather than simply comparing floor area.

8. Check Loading Docks and Drive-In Doors

Industrial users should determine how products, equipment and vehicles will enter and leave the building.

Questions include:

• How many dock-high doors are available?
• Are drive-in doors available?
• What are the door dimensions?
• Can tractor-trailers maneuver on the site?
• Is there adequate truck court depth?
• Is loading shared with other occupants?
• Are there restrictions on loading hours?

9. Evaluate Parking Requirements

Parking can determine whether an otherwise attractive property actually works.

The number of spaces a business needs depends on factors such as:

• Number of employees
• Number of customers
• Type of business
• Peak operating hours
• Local zoning requirements
• Shared parking arrangements
• Accessibility requirements

10. Understand Parking Ratios

Commercial listings sometimes describe parking using a ratio, such as spaces per 1,000 square feet.

11. Evaluate Customer Access

For customer-facing businesses, convenient access can materially affect the property’s usefulness.

Consider:

• Ease of entering the site
• Ease of exiting the site
• Traffic direction
• Median restrictions
• Intersection location
• Traffic signals
• Pedestrian access
• Public transit
• Accessibility

A highly visible building may still be inconvenient if customers cannot easily enter the property.

12. Evaluate Truck Access

Truck access deserves separate analysis for industrial, warehouse, distribution and logistics users.

Evaluate:

• Road width
• Turning radius
• Bridge clearances
• Weight restrictions
• Truck routes
• Site entrances
• Trailer storage
• Truck courts
• Loading docks
• Highway access

13. Check the Electrical Capacity

Electrical capacity can be critical for:

• Manufacturing
• Commercial kitchens
• Medical operations
• Data-intensive businesses
• Industrial equipment
• Auto-related businesses
• Other power-intensive uses

If the existing electrical service is insufficient, upgrading it may involve substantial cost and lead time.

Qualified electrical and engineering professionals should evaluate technical requirements where appropriate.

14. Verify Water and Sewer

The availability and capacity of water and sewer service can affect whether a property supports the intended use.

This may be particularly important for:

• Restaurants
• Food production
• Medical uses
• Day care
• Manufacturing
• High-occupancy assembly uses
• Development sites

Do not assume that existing service automatically has enough capacity for a new or expanded use.

15. Evaluate Natural Gas and Other Utilities

Depending on the operation, determine availability and capacity of:

• Electricity
• Natural gas
• Water
• Sewer
• Internet/fiber
• Telecommunications

Maryland Commerce specifically includes infrastructure and utility information among the factors used in commercial site selection.

16. Check Fire Protection and Sprinkler Systems

The building’s fire-protection systems can become particularly important when changing the use or occupancy.

Consider:

• Existing sprinkler system
• Fire alarm system
• Number and location of exits
• Occupancy classification
• Fire department access
• Potential upgrade requirements

A change from warehouse or office use to an assembly, educational or other higher-occupancy use may require significant improvements.

17. Evaluate ADA and Accessibility Considerations

Accessibility should be investigated as part of evaluating the property and planned improvements.

Depending on the property and proposed work, considerations may include:

• Accessible parking
• Accessible routes
• Entrances
• Door widths
• Restrooms
• Elevators
• Interior circulation

Qualified professionals should evaluate applicable accessibility requirements for the specific property and project.

18. Determine Whether Outdoor Storage Is Needed

Contractors, trucking companies, equipment businesses and some industrial users may need outdoor storage.

Before selecting a property, determine:

• Whether zoning allows outdoor storage
• Where storage can occur
• Screening requirements
• Setbacks
• Surface requirements
• Security requirements
• Whether trailers or commercial vehicles may be stored

19. Evaluate Signage and Visibility

Visibility can be valuable for retail, medical, office and service businesses, but the ability to install signage should also be investigated.

Questions include:

• Can building signage be installed?
• Is monument signage available?
• Are there sign-size restrictions?
• Are approvals required?
• Is signage shared with other tenants?
• Can the sign be seen from the primary roadway?

20. Check the Property’s Physical Condition

Once a property appears suitable operationally, investigate its physical condition.

Potential areas include:

• Roof
• Structure
• HVAC
• Electrical
• Plumbing
• Parking lot
• Drainage
• Exterior walls
• Windows
• Fire protection
• Other building systems

21. Estimate Renovation and Build-Out Costs

Do not evaluate a property solely in its existing condition.

Determine what must be changed before the business can operate.

Potential work may include:

• Interior demolition
• New walls
• Flooring
• Ceilings
• Restrooms
• HVAC modifications
• Electrical upgrades
• Plumbing
• Sprinklers
• Fire alarm systems
• Accessibility improvements
• Exterior improvements
• Parking improvements
• Signage

22. Consider the Time Required Before Occupancy

Build-out costs are only part of the equation.

Time also has economic value.

A property requiring substantial approvals and construction may delay operations for months.

Consider:

• Zoning approvals
• Building permits
• Architectural plans
• Engineering
• Construction
• Inspections
• Use and occupancy approvals
• Utility upgrades

23. Evaluate Expansion Potential

The right property should ideally support not only the business today but also its reasonably anticipated growth.

Consider whether the property provides:

• Additional office space
• Warehouse expansion
• Additional parking
• Additional land
• Building expansion potential
• Future loading capacity
• Room for additional employees

24. Investigate Environmental History

Historical property use may create environmental concerns even when the building appears suitable.

Depending on the property, environmental due diligence may investigate:

• Past industrial use
• Gas stations
• Dry cleaners
• Automotive operations
• Underground storage tanks
• Known releases
• Neighboring environmental conditions

25. Investigate Easements, Access and Restrictions

The physical appearance of a property does not establish all of the owner’s legal rights.

Title and survey investigation may identify:

• Utility easements
• Access easements
• Rights-of-way
• Shared driveways
• Parking agreements
• Private restrictions
• Reciprocal easement agreements
• Encroachments

26. Consider Property Taxes

Property taxes affect the cost of ownership and may also affect tenants under leases where taxes are passed through as operating expenses.

A buyer should investigate the current assessment and understand how the property’s taxes fit into the acquisition budget.

27. Investigate Maryland Business Incentive Zones

Location can affect more than convenience.

Certain Maryland locations may fall within economic development areas where qualifying businesses or investments may be eligible for incentives.

For example, Maryland’s Enterprise Zone program provides potential real property and state income tax credits for qualifying businesses that meet applicable investment or job-creation requirements.

Eligibility should be investigated directly with the appropriate state and local agencies before relying on an incentive when making a real estate decision.

28. Compare Properties Using the Same Criteria

Once several properties have been identified, evaluate them consistently.

29. Separate “Must-Haves” From “Nice-to-Haves”

Few commercial properties satisfy every preference.

Separate requirements into three categories.

This prevents attractive but operationally unsuitable properties from distracting the search.

30. Think About Resale or Re-Leasing

Commercial property should also be evaluated from an exit perspective.

Even an owner-user should consider:

• Would another business want this property?
• Is the layout highly specialized?
• Can the building support multiple uses?
• Is the location likely to remain desirable?
• Can the property be leased if the business relocates?
• Is expansion possible?
• Are there restrictions that reduce the buyer pool?

Different Businesses Need Different Properties

Commercial Property Search Checklist

Common Commercial Property Selection Mistakes

• Starting with listings before defining business requirements.
• Choosing a property because the rent or price is cheap.
• Assuming the advertised zoning permits the intended use.
• Looking only at square footage instead of layout.
• Ignoring parking requirements.
• Failing to evaluate truck access.
• Ignoring utility capacity.
• Underestimating renovation costs.
• Ignoring the time required for permits and construction.
• Failing to investigate environmental history.
• Ignoring easements and private restrictions.
• Choosing a property with no room for business growth.
• Failing to consider future resale or leasing potential.

Commercial Property Selection FAQs

This article is provided for general informational and educational purposes only and does not constitute legal, zoning, engineering, environmental, financial, tax or investment advice. Zoning classifications, permitted uses, parking requirements, building codes, licensing requirements and other property regulations vary by Maryland jurisdiction and specific property. Buyers and tenants should verify applicable requirements with the appropriate government agencies and qualified professionals before making real estate or business decisions.