Commercial zoning in Maryland can determine whether a property that looks perfect for your business can actually be used for your intended operation. Before signing a commercial lease, purchasing a building or spending money designing a new location, one of the most important steps is confirming that your proposed use is permitted at the property.

A building may have the right size, location, parking and rental rate and still be unsuitable because of zoning, use restrictions, parking requirements, occupancy limitations or other governmental approvals.

This is particularly important in Maryland because there is no single commercial zoning designation that applies uniformly throughout the state. Counties, Baltimore City and certain municipalities administer zoning requirements applicable to properties within their jurisdictions.

What Does Commercial Zoning Mean?

Zoning regulates how land and buildings may be used. Local zoning codes divide properties into districts and establish the types of activities that may be allowed within those districts.

Depending on the jurisdiction, zoning regulations may address:

• Retail businesses
• Professional offices
• Medical and healthcare uses
• Restaurants and food-service businesses
• Warehouses and distribution facilities
• Manufacturing and industrial uses
• Childcare and daycare facilities
• Religious and assembly uses
• Automotive businesses
• Outdoor storage
• Truck and trailer parking
• Parking requirements
• Loading areas
• Signs
• Setbacks
• Building height
• Development density

Two commercial properties that look almost identical can have very different permitted uses because they are located in different zoning districts or different Maryland jurisdictions.

Maryland Does Not Have One Universal Commercial Zoning Code

This is one of the most important concepts for Maryland business owners to understand.

Maryland provides the broader legal framework for planning and land use, but most zoning regulations are administered locally. This means zoning terminology and permitted-use rules can differ considerably from one county or municipality to another.

Baltimore County, Anne Arundel County, Howard County, Prince George’s County, Montgomery County, Frederick County, Harford County, Baltimore City and other jurisdictions maintain their own zoning regulations.

The Most Important Question: Is Your Business Use Permitted?

After identifying the zoning classification, the next question should not simply be whether the property is “commercial.”

The real question is:

Local zoning codes generally classify individual uses and specify whether they are permitted by right, permitted subject to additional conditions, require special approval or are prohibited.

Permitted by Right

A permitted-by-right use is generally allowed within the zoning district without obtaining a discretionary zoning approval, assuming all other applicable standards are satisfied.

That does not necessarily mean the business can open immediately. Building, occupancy, fire, licensing, parking and other approvals may still be required.

Conditional Uses and Special Exceptions

Some business uses may be allowed only after satisfying additional standards or obtaining a conditional-use, special-exception or similar approval.

Depending on the jurisdiction, this process may involve:

• Submitting an application
• Providing a site plan
• Demonstrating compliance with specified standards
• Public notice
• A public hearing
• Review by an administrative body or hearing examiner

Terminology and procedures vary among Maryland jurisdictions.

Prohibited Uses

If your proposed use is prohibited in the property’s zoning district, the fact that the landlord is willing to lease the property to you does not make the use legal.

This is why preliminary zoning research should occur before a tenant or buyer makes a substantial commitment.

Zoning Classification Is Not the Same as Current Use

Several different pieces of property information are sometimes confused with one another.

These should not automatically be treated as interchangeable.

Why the Previous Tenant’s Business Does Not Automatically Prove Your Use Is Allowed

Suppose you are considering a building currently occupied by another business. It may seem reasonable to assume that because one company operated there, your company can do the same.

That assumption can create problems.

Your proposed operation may fall into a different zoning-use classification. The existing business could also be operating under a special exception, conditional approval, legal nonconforming status or another circumstance that does not automatically apply to the next occupant.

Verify your own proposed use independently.

Change of Use Can Trigger Additional Requirements

Commercial property approvals can change depending on how a space will be used. Converting an existing space from one type of operation to another may trigger additional zoning, building, fire, accessibility, parking or occupancy requirements.

Potential issues can include:

• Parking ratios
• Fire and life-safety requirements
• Sprinkler systems
• ADA accessibility
• Restroom requirements
• Occupant load
• Emergency exits
• Food-service improvements
• Loading requirements
• Traffic considerations

Parking Requirements Can Determine Whether a Property Works

Parking is one of the most frequently underestimated issues when evaluating commercial real estate.

A property may have sufficient interior square footage but still be unsuitable if the proposed business requires more parking than the property can legally provide.

The required number of parking spaces may vary substantially by use. A warehouse, office, restaurant, retail business, medical office and place of assembly may each have different parking requirements.

Religious and Assembly Uses

Churches, religious organizations, event venues and other assembly uses deserve particularly careful zoning review.

A warehouse or office building may initially appear ideal for conversion into a sanctuary or meeting space because of its open floor plan. However, assembly occupancy may create additional requirements involving zoning, parking, fire protection, occupant load, accessibility and building code compliance.

Important questions can include:

• Is the religious or assembly use permitted?
• Is special approval required?
• How much parking is required?
• What is the permitted occupant load?
• Are sprinklers required?
• Are sufficient exits available?
• Does the building satisfy accessibility requirements?
• Are the existing restrooms adequate?
• Will a change of use be required?

Restaurants and Food-Service Businesses

A storefront that previously housed a retail shop should not automatically be assumed suitable for restaurant conversion.

Restaurants may need to evaluate:

• Whether restaurant use is permitted
• Parking
• Commercial kitchen requirements
• Grease management
• Kitchen exhaust
• Fire suppression
• Outdoor seating
• Signage
• Health-related approvals
• Alcohol licensing, when applicable

Childcare and Daycare Facilities

Childcare businesses can involve zoning, licensing and property-specific requirements beyond those applicable to ordinary office or retail users.

Potential considerations include:

• Permitted use
• Outdoor play areas
• Parking
• Drop-off and pickup areas
• Building occupancy
• Fire and life safety
• State licensing
• Local approvals

Medical and Healthcare Uses

A property advertised as office space is not necessarily suitable for every medical or healthcare operation.

Medical, behavioral-health, dental and other healthcare uses may be classified differently from conventional professional offices depending on the jurisdiction and nature of the operation.

Confirm the exact proposed use rather than relying on a general listing description such as “office.”

Warehouse, Logistics and Industrial Uses

Industrial properties require particularly careful use analysis because businesses that appear similar may have substantially different operational impacts.

For example, zoning treatment may differ among:

• Warehousing
• Distribution
• Freight operations
• Truck terminals
• Trailer parking
• Outdoor storage
• Manufacturing
• Vehicle storage
• Contractor yards

Truck traffic, loading areas, outdoor storage, noise, operating hours and vehicle circulation may all affect whether a site is appropriate.

Automotive Uses

Automotive repair shops, dealerships, body shops, vehicle-storage facilities and related businesses frequently require specific zoning authorization.

Do not assume general commercial or retail zoning automatically permits:

• Vehicle sales
• Vehicle repair
• Body work
• Outdoor vehicle storage
• Commercial vehicle parking

Environmental considerations and outdoor-use regulations may also be relevant.

Signage May Be Regulated Separately

Even after confirming that your business is permitted at the property, local rules may limit the type of sign you can install.

Sign regulations may address:

• Sign dimensions
• Wall-mounted signs
• Freestanding signs
• Illumination
• Electronic signs
• Temporary signs
• Setbacks
• Permit requirements

The lease can also impose additional signage restrictions beyond governmental requirements.

What Is a Zoning Variance?

A variance generally provides relief from particular zoning requirements when the applicable legal standards are satisfied.

A variance should not be treated as an automatic solution to a property problem. Approval standards, procedures and timing vary by jurisdiction, and approval is not guaranteed.

If a proposed transaction depends on receiving a variance or other discretionary approval, the transaction should be structured carefully around that risk.

Verify Zoning Before Signing a Commercial Lease or Purchase Contract

One of the most expensive mistakes a business owner can make is becoming fully obligated on a property and discovering afterward that the intended use cannot be approved.

Before making a binding commitment, consider verifying:

Zoning and Permitting Contingencies

If your business depends on receiving governmental approvals, discuss appropriate contingencies with your real estate and legal professionals before becoming unconditionally obligated.

Depending on the transaction, negotiated provisions may address:

• Zoning approval
• Permitted use
• Use and occupancy approval
• Building permits
• Business licensing
• Special exceptions or conditional uses
• Construction approvals

The appropriate language and legal effect of these provisions should be reviewed by qualified legal counsel.

Zoning Is Only One Part of Commercial Due Diligence

A favorable zoning determination does not necessarily mean the property is ready for your business.

Depending on the transaction, additional due diligence may include:

• Physical property condition
• Environmental matters
• Utilities
• Access
• Parking
• Title matters
• Private covenants and restrictions
• Shopping-center restrictions
• Building systems
• Renovation costs
• Lease terms
• Financing

How to Verify Commercial Zoning in Maryland

Start by determining the jurisdiction in which the property is actually located. Then locate the jurisdiction’s official zoning map or property information system.

After confirming the zoning classification, review the applicable use table and regulations for the exact business activity you intend to conduct.

When the answer is unclear, contact the applicable local zoning or planning department and describe the proposed operation accurately.

Maryland SDAT Is Useful — But It Is Not Your Final Zoning Answer

The Maryland Department of Assessments and Taxation provides useful real property information, including ownership and assessment records.

However, assessment or property-record information should not replace zoning verification with the applicable local government.

Common Commercial Zoning Mistakes

Several mistakes occur repeatedly when business owners search for commercial property.

• Assuming “commercial” means every commercial business is allowed.
• Relying only on the listing agent’s zoning description.
• Assuming the previous tenant’s approval transfers automatically.
• Signing the lease before investigating permitted use.
• Ignoring parking requirements.
• Failing to account for a change of use.
• Confusing tax-assessment information with zoning approval.
• Describing the proposed operation too generally when asking the zoning department.

Commercial Zoning Maryland FAQs

This article is provided for general informational and educational purposes only and does not constitute legal, zoning, engineering, architectural, financial or other professional advice. Zoning classifications, permitted uses, approval procedures, parking requirements and other regulations vary by property and jurisdiction. Verify applicable requirements with the appropriate government agency and qualified professionals before making a commercial real estate commitment.