Commercial Real Estate Market in Frederick, MD
Updated monthly: sale, lease, property records, location trend, and more… · Last update: August 31
257 active listings and 3,051 off-market properties in Frederick, MD. Commercial property asks $141/SF to buy and $19.73/SF/Yr to lease.
Market Trends
Frederick, MD spans 140.1 square miles in Frederick County, Maryland. Figures below refresh monthly; last updated 31 August 2026.
Office
Office vacancy in Frederick, MD runs 20.2% across the South region in 2025, up from 14.4% in 2019.
Vacancy Rate % in South region
Retail
Retail vacancy in Frederick, MD runs 5.4% across the South region in 2025, down from 7% in 2020.
Vacancy Rate % in South region
Industrial
Industrial vacancy in Frederick, MD runs 7.9% across the South region in 2025, up from 6% in 2019. Nearly 2.3x the 2022 low of 3.5%.
Vacancy Rate % in South region
Multifamily
Multifamily vacancy in Frederick, MD runs 11.3% across the South region in 2025, up from 8.5% in 2022.
Vacancy Rate % in South region
Zoning & Land Use
Land Use Mix share of zoned land by category
- Residential 43.2%
- Industrial 22.3%
- Mixed use 15.9%
- Commercial 14.4%
- Agricultural 4.3%
- Civic 0%
Largest Zones share of zoned land by district
Light Industrial
Low Density Residential
Mixed Use
Medium Density Residential
General Commercial
Frederick, MD zones 15,346 acres across 19 districts. Commercial zoning covers 14.4% of zoned land, residential 43.2% and industrial 22.3%. The largest single district is Light Industrial at 19.8%. For commercial buyers the practical constraint is that only 36.6% of land carries a commercial or industrial designation.
Low Density Residential (R-4)
R4 (Low Density Residential) The R4 District is intended to provide for residences in an urban residential environment with a maximum density of four (4) dwellings per acre. In addition, this district is intended to accommodate a complement of residential support uses normally utilized during the daily activities of residents, to protect these areas from the…
Market overview
Demographics & Economy
Frederick, MD has 146,463 residents in 59,594 households. Density runs 1,045 people per square mile. Median household income here is $112,070 and median gross rent $1,826 a month.
146,463
Population
59,594
Households
2.5
Avg Household Size
37
Median Age
46%
College-Educated
92%
High-School Grad
140.1 sq mi
ZIP Area
1,045
Density / Sq Mi
$112,070
Median Household Income
$60,558
Median Earnings
$1,826
Median Rent
$410,948
Median Home Value
Tools
Lease vs Buy Breakeven
At $19.73/SF/Yr lease vs $141/SF buy → buying wins if held > 0.8 years.
At a 14% gross asking yield the payback reads short relative to leasing. Assumes 30% down at 6.5% fixed, 2% a year in taxes and upkeep, 3% appreciation, 5% opportunity cost, 2% closing plus 5% selling costs, and a 3% annual rent escalator.
Nearby Markets
| Market | Average Sale Price, $/SF | Average Lease Price, $/SF/Yr |
|---|---|---|
| Braddock Heights | — | — |
| Lake Linganore | — | — |
| Buckeystown | — | — |
| Ijamsville | — | — |
Commercial property in Frederick, MD asks $141/SF.
Frequently Asked Questions
What is the average price per square foot for commercial property in Frederick?
Commercial property in Frederick, MD asks an average of $141 per square foot. The 6 most recent recorded sales traded at a median of $277/SF.
How much does it cost to lease commercial space in Frederick?
Asking lease rates in Frederick, MD average $19.73 per square foot per year.
Is it cheaper to lease or buy commercial space in Frederick?
Buying beats leasing in Frederick, MD if the property is held longer than 0.8 years, comparing $19.73/SF/Yr asking rent with $141/SF asking price. The model assumes 30% down at 6.5% fixed, 2% of value per year in taxes and upkeep, 3% appreciation, 5% opportunity cost on the cash and a 3% annual rent escalator.
What zoning applies to commercial property in Frederick?
Frederick, MD zones 15,346 acres across 19 districts, of which 14.4% is commercial and 22.3% industrial. The largest single district is Light Industrial at 19.8% of zoned land. Residential zoning covers 43.2% and open space 0%.
Where does Realmo's Frederick market data come from?
Realmo compiles Frederick, MD figures from 8 recent recorded sales, 105 active sale listings, 152 active lease listings, 3,051 tracked off-market properties, the current Frederick zoning release. Sale and lease figures refresh monthly; vacancy annually. Last updated 31 August 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 105 active for-sale and 152 active for-lease listings in Frederick, MD. These are ASKING figures from live listings, not closed-transaction prices, and a segment carried by a handful of listings reads as indicative rather than an average.
- Vacancy rates
- Published per-sector market series, taken at the metro level where one exists and otherwise at the Census-region level — a chart reading "in <region> region" is a regional number, not this city's.
- Zoning and land use
- The current municipal zoning release: 15,346 zoned acres across 19 districts. Shares are of zoned land, so parcels the release leaves unclassified are excluded from the mix.
- Refresh
- The monthly aggregates close at the end of the previous month, so 31 August 2026 — not today — is the honest last update.
- Known limitations
- office vacancy is reported at South region level, retail vacancy is reported at South region level and industrial vacancy is reported at South region level.
- Coverage
- Metrics below the 10-observation threshold fall back one geographic level. The geography used is named on each figure.
Compiled by the Realmo Data team · reviewed 31 August 2026 · report a data issue
