A Promising Year for Commercial Real Estate in 2025

In 2025, we’re excited to see the commercial real estate sector poised for growth. New opportunities emerge both locally and statewide, fueled by innovation, economic resilience, and evolving market dynamics. According to Forbes, key trends such as the adaptive reuse of properties, the rise of industrial real estate, and continued demand for flexible office spaces are set to shape the landscape nationally. Sustainable development will also play a prominent role, with ESG (Environmental, Social, and Governance) criteria influencing property development and investment decisions.

Thanks to its strategic location, business-friendly environment, and diverse economy, Frederick County is well-positioned to harness these trends. Here’s what lies ahead for Maryland, Frederick County, and the businesses and leaders driving growth.

Maryland’s Business Outlook: A Positive Forecast

Maryland’s economy is primed for expansion in 2025. With its proximity to Washington, D.C., and an infrastructure supporting key industries like biotech, cybersecurity, and advanced manufacturing, the state continues to attract businesses and talent. Governor Wes Moore’s recent focus on innovation and workforce development has laid a solid foundation for growth.

In 2025, Maryland’s commercial real estate market is expected to benefit from:

  • Federal Investments: Despite potential workforce shifts, federal contracts in healthcare, defense, and technology remain a significant economic driver.
  • Life Sciences Growth: Biotech companies are expanding across the I-270 corridor, with Frederick County emerging as a key player.
  • Entrepreneurship Initiatives: State investments in startup ecosystems empower small businesses and innovators.

With these strengths, Maryland’s business landscape offers investors, business owners, and developers opportunities.

Insights from Frederick County Leaders

To better understand Frederick County’s 2025 outlook, VCRE contacted local leaders to hear their perspectives on business growth, real estate trends, and upcoming opportunities.

Jessica Fitzwater, Frederick County Executive

Frederick County Government plays a key role in setting the stage for economic growth and sustainable development in the region. Through initiatives aligned with the Livable Frederick Master Plan, the county government aims to balance business expansion, community development, and environmental stewardship. 

County Executive Jessica Fitzwater emphasizes opportunities to address pressing challenges like affordable housing and workforce readiness while supporting key industries such as advanced manufacturing and life sciences. These efforts will position Frederick County as a hub for innovation and investment in 2025.

  • Outlook for Business Growth:
    “Frederick County’s economy is strong and growing. We’ve experienced the second-highest GDP growth in the state and have the seventh-largest economy in Maryland. In 2024, local companies expanded significantly, especially in advanced manufacturing, professional services, and life sciences. I expect this trend to continue in 2025.”
  • Commercial Real Estate Trends:
    “Industrial and retail properties are experiencing very low vacancy rates, while office spaces have healthy vacancies of 9-11%, well below the 20% rates seen in metro areas. These conditions allow businesses to find space for expansion within the county.”
  • Opportunities and Challenges:
    “Affordable housing remains a priority as it directly impacts economic viability. We’re also focusing on redevelopment and site readiness to attract investments aligned with our Livable Frederick Master Plan.”
  • Exciting Projects:
    “The revitalization of the Business and Industry Cabinet and implementing the South Corridor Plan will drive sustainable economic development. Our Business Development team has 90 active prospects, and I anticipate more exciting announcements in 2025.”

Rick Weldon, President and CEO of the Frederick Chamber

Rick Weldon, President and CEO of the Frederick Chamber, is a vital connection between the county’s businesses and its stakeholders. Rick’s deep understanding of the local economy and advocacy for entrepreneurs and established companies make him a trusted voice in shaping economic strategies.

  • Outlook for Business Growth and Real Estate:
    “Frederick County’s business outlook remains strong. However, regulatory burdens, utilities, and zoning availability can limit opportunities. These same issues impact commercial real estate development.”
  • Key Trends:
    “Contrary to the narrative that manufacturing is declining, Frederick is attracting small and mid-sized manufacturers. Additionally, the Quantum Frederick project, focused on data centers, represents a transformative opportunity for the county.”
  • Chamber Initiatives:
    “Our role is to advocate for and assist businesses. Partnering with VCRE and others, we aim to provide a stable, predictable environment where businesses can thrive.”

Danielle Adams, Executive Officer of the Frederick County Building Industry Association

Danielle Adams, Executive Officer of the FCBIA, plays a critical role in advocating for the region’s infrastructure to meet the needs of its growing community. With expertise in navigating state and local policies, Danielle provides invaluable insights into the challenges and opportunities for builders and developers in Frederick County.

  • Policy Updates and Their Impact:
    “Maryland adopted the 2021 International Code Council changes in 2024, which will influence building permits and costs in 2025. Our association works closely with the city and county to address these changes and advocate for housing targets and impact fee adjustments.”
  • Challenges and Opportunities:
    “The adoption of new energy codes could increase costs by up to $31,000 for some developments, but we’re focused on finding solutions to keep housing accessible while ensuring compliance with modern standards.”

Frederick County’s Unique Position in 2025

Frederick County’s low vacancy rates, strategic initiatives, and strong local leadership make it a hotspot for commercial real estate and business growth in 2025. Whether you’re an investor seeking opportunities, a business owner looking to expand, or a landowner navigating property transitions, the county offers a supportive environment and a wealth of opportunities.

VCRE is here to help you navigate these opportunities and challenges with confidence. Our team’s local expertise and commitment to your success make us your ideal partner in achieving your commercial real estate goals.