Choosing the right location is one of the most important—and most regulated—decisions you’ll make when opening a cannabis dispensary in Maryland. It’s not just about foot traffic or lease rates; state and local laws impose strict zoning rules, distance requirements, and operational restrictions.
In this guide, we’ll walk you through what to consider when scouting for a dispensary site in Maryland, so you can make an informed decision and stay compliant with the Maryland Cannabis Administration (MCA) and local jurisdictions.
1. Understand Statewide Zoning Regulations
Under Maryland law, dispensaries must adhere to zoning and land use rules that vary by municipality. However, some general statewide restrictions include:
- Buffer zones from schools, daycares, and parks (usually 500–1,000 feet)
- Distance requirements from other dispensaries or cannabis businesses
- Restrictions on dispensaries operating in purely residential zones
Make sure your desired location is in an area that permits cannabis retail operations under local ordinances.
2. Verify Local Jurisdiction Approval
Even if a location meets state zoning requirements, your local jurisdiction may impose additional rules. Before signing a lease or making a purchase, you’ll want to:
- Contact the city or county planning department
- Confirm whether cannabis dispensaries are allowed in your desired zone
- Inquire about special permits, conditional use approvals, or licensing steps
- Understand any local moratoriums or caps on cannabis retail licenses
Some jurisdictions may also require public hearings or allow community members to voice objections. Early outreach can help build local support and reduce resistance.
3. Consider Visibility, Access, and Foot Traffic
While compliance is key, your dispensary must also succeed as a business. Consider:
- Visibility: Is your storefront easy to find and recognizable to passersby?
- Parking: Is there adequate customer and employee parking nearby?
- Transit Access: Are you close to public transportation or major roads?
- Foot Traffic: Is the location near commercial centers, offices, or entertainment areas?
Balance regulatory requirements with consumer convenience to position your dispensary for success.
4. Evaluate Security and Safety Features
Maryland law requires robust security measures, and your physical location plays a big role in meeting those standards. As you evaluate properties, consider:
- Ability to install surveillance cameras, alarm systems, and secure entryways
- Adequate lighting for customer and delivery areas
- Space for vaults or secure inventory rooms
- Location history of crime or nuisance activity
The Maryland Cannabis Administration will review your security plan during licensing—choose a property that supports strong compliance from the start.
5. Assess Property Readiness and Cost
Not all commercial properties are ready to support cannabis operations. You may need to invest in:
- HVAC upgrades (especially if cannabis-infused products are stored)
- ADA compliance adjustments
- Interior layout renovations for security and customer flow
- Higher-than-average insurance premiums or security deposits
Be sure to include these factors in your budget projections before committing to a lease or purchase.
6. Secure Site Control Documentation
To apply for a dispensary license in Maryland, you must show evidence of site control, even if the site is still under development. Acceptable documentation includes:
- Signed lease agreement
- Letter of intent (LOI) from the property owner
- Purchase agreement or deed
Applications without verified site control are typically disqualified, so this step is non-negotiable.
✅ Final Thoughts: Set Your Location Strategy Up for Long-Term Success
Choosing the right Maryland cannabis dispensary location is about more than compliance—it’s about building a profitable, sustainable business from the ground up. The right property will support regulatory requirements, satisfy your customers, and allow room for future growth. GreenGrowth CPAs can help you evaluate location risks, forecast operational costs, and integrate real estate decisions into your broader business strategy. Our team of cannabis finance experts has helped dozens of dispensaries across the country make smart, scalable decisions from day one.is law. Our cannabis-specialized CPA team ensures you’re not only ready to apply but ready to grow.
