Commercial Real Estate News / Buying / Top Places to Buy Land in Maryland

Top Places to Buy Land in Maryland

Published: 09-17-24 Category: Buying

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The Baltimore Convention Center during the day.

If you're a commercial real estate broker specializing in the Mid-Atlantic region, a real estate developer, or a commercial investor, the state of Maryland offers a variety of potential commercial land opportunities, from bustling urban centers to serene coastal areas.

Here, we'll explore five top locations in Maryland that may be particularly attractive for commercial real estate (CRE) investments.

#1 – Baltimore City

As Maryland's largest city and economic hub, Baltimore continues to be a prime location for commercial and residential developers.

The city adjoins the Patapsco River, close to the Chesapeake Bay with a total area of just over 92 square miles. Although it's almost surrounded by Baltimore County, it's politically independent.

The city's ongoing revitalization efforts, coupled with its strategic location along the East Coast, make it an attractive option for various commercial ventures.

Some of the advantages offered to commercial investors include:

Urban renewal projects creating new opportunities;
Strong transportation infrastructure, including port facilities;
Diverse economy with strengths in healthcare, education, and technology; and
Potential tax incentives for development in certain areas.

Possible drawbacks include higher land costs than in the state's suburban and rural areas due to the relative scarcity of land.

Other concerns include complex zoning regulations and potential environmental considerations.

#2 – Montgomery County

Adjacent to Washington D.C., Montgomery County is one of the wealthiest in the region. Most residents live in affluent areas like Bethesda, Silverspring, Rockville, and Gaithersburg.

Career opportunities include several larger federal entities, such as the US Department of Health and Human Services and the Department of Defense.

Montgomery County was the first in the nation to create a biotechnology investment program and currently offers investment incentive tax credits.

Like Baltimore City, commercial and residential land for sale is relatively scarce; however, high-end developers will recognize positive opportunities in this area.

Investors will recognize the following averages:

Affluent population with high disposable income;
Proximity to several of the nation's top capital and federal agencies;
Strong technology and biotechnology sectors; and
Excellent public schools, attracting families and businesses.

As can be expected, investors will face high land costs and an often competitive market.

The area's proximity to Washington, D.C. also means that developers will work under strict regulations, including environmental protection measures.

#3 – Frederick County

Located at the crossroads of major interstate highways I-70 and I-270, Frederick County is emerging as a popular location for distribution centers, light manufacturing, and technology parks.

Few areas offer easier access to other states. In addition to I-70 and I-270, highways 15, 40, 40A, and 340 intersect Frederick County.

Key Advantages:

Easy transportation access to Baltimore, Washington D.C., and Pennsylvania;
Lower land costs compared to closer-in suburban areas Baltimore and Montgomery;
Home to a growing population and expanding local economy;
Offers developers a mix of urban, suburban, and rural areas offering diverse options; and
The county's Office of Economic Development works to help new businesses become established.

Land buyers and investors are encouraged to consider the area sooner rather than later, as the county is increasing in popularity and prices.

#4 – Anne Arundel County

Home to the state capital of Annapolis and Baltimore-Washington International Airport, Anne Arundel County offers investors a variety of government, tourism, and technology-driven commercial opportunities.

The county's history goes back to 1650, the year after King Charles I granted the colony to Cecil Calvert. When Calvert's wife, Anne Arundel, died the same year, the General Assembly named the area's new county after her.

Investors and buyers interested in the following advantages will be particularly interested in this county:

Diverse economic drivers, including government, defense contractors, and tourism;
Waterfront properties with potential for maritime-related businesses;
Proximity to both Baltimore and Washington D.C.; and
The strong local economy and high quality of life attract a skilled workforce.

Investors must be prepared to adhere to the statutes protecting nearby Chesapeake Bay and its surrounding wetlands. For example, land purchased for commercial use must protect nearby Habitat Protection Areas and control pollutants.

#5 – Harford County

While not as well-known as its neighbors to the south, northeastern Maryland's Harford County is becoming increasingly popular with investors and developers. In addition to available land, it's a strategic location with a growing economy.

It's also home to Aberdeen Proving Ground, which employs over 21,000 military, civilian, and contractor staff.

Close to two major ports: Baltimore and Philadelphia;
Lower land costs compared to central Maryland counties; and
The county's mix of rural and suburban areas offers diverse development options.

Considering the less-developed infrastructure, additional investments may be required. Potential land buyers should also be dedicated to the preservation of the county's rural character.

Additional Land Purchase Areas

While these five areas offer significant potential to land investors, other opportunities with the state may be well-worth researching, depending on development plans.

For example, investors planning tourism-related developments may want to consider available land along the state's Eastern Shore. Western Maryland is home to an increasing number of industrial and distribution projects.

While Maryland offers a variety of opportunities for land investors, there are also certain factors that will require comprehensive research before finalizing a transaction.

Due Diligence and Evaluation

When considering land purchases in these areas, investors should conduct thorough due diligence, including:

Zoning regulations and future land use plans. For example, every parcel of land in Baltimore City has zoning regulations that control what the property can be used for and the siting of any planned construction;
Environmental considerations and potential remediation requirements, especially in the Chesapeake Bay area;
Infrastructure capabilities and planned improvements;
Local economic trends and population growth projections; and
Potential incentives or tax benefits for commercial development.