Prince George’s County is the DC region’s working warehouse. It wraps the eastern half of the city, straddles the Capital Beltway (I-495), and connects to I-95, US-50, US-1, and Route 301. That geography puts a flex bay in Landover or Capitol Heights within 20 minutes of most of DC. It is why contractors, food distributors, federal suppliers, and last-mile delivery operators keep leasing small and mid-size industrial space here.
This guide covers industrial and flex warehouse loans in Prince George’s County: bridge purchase, tenant improvements, lease-up, and NNN DSCR takeout. It parallels our Chicago industrial warehouse loans guide, adjusted for Maryland zoning, closing taxes, and DC-area rents. Jaken Finance Group underwrites from 2300 Barrington Road, Suite 400, Hoffman Estates, Illinois, in Cook County, and lends in all 50 states. Call (833) 264-7776.
Prince George’s County industrial submarkets (2026 planning ranges)
| Submarket | Typical size | 2026 asking rent (NNN, planning) | Character |
|---|---|---|---|
| Landover / Cheverly / Hyattsville (US-50, Route 202) | 8,000–40,000 sf | $14–$20 / sf | Inside-the-Beltway last-mile, food distribution, contractors |
| Capitol Heights / District Heights (DC line) | 5,000–25,000 sf | $15–$22 / sf | Closest to DC; small-bay flex and outdoor storage |
| Beltsville / Calverton / Laurel (US-1, I-95) | 15,000–100,000 sf | $12–$18 / sf | Larger flex and distribution; federal contractor demand |
| Lanham / Largo / Upper Marlboro (US-50, I-495) | 10,000–60,000 sf | $12–$17 / sf | Mid-size flex, service contractors |
| Brandywine / Route 301 corridor | 20,000–150,000+ sf | $10–$15 / sf | Newer bulk and outdoor storage; longer drive to DC |
These are planning ranges from listings and deals we track, not appraisals. A 12,000-square-foot Capitol Heights bay with two working docks and yard space can out-rent a larger Upper Marlboro building with no docks.
How Prince George’s County compares with Chicago
| Factor | Prince George’s County flex | Chicago city last-mile |
|---|---|---|
| Typical vintage | 1970s–1990s tilt-up and block | 1910s–1950s masonry mill stock |
| Clear height | 18’–24’ common | 14’–22’ common |
| Truck courts | Often 100’+ on suburban lots | Often alley or 60’–80’ |
| Environmental history | Auto, printing, fuel, some older manufacturing | Packing, plating, heavy manufacturing |
| Rent driver | Beltway access to DC | Proximity to Loop and South Side |
| Property tax | Maryland SDAT assessment plus county rate | Cook County at 25% of market value |
The takeaway: Prince George’s County buildings are usually more functional and less contaminated than Chicago mill buildings. They also cost more per square foot. Underwrite the tenant who can actually use the site, not a hoped-for national logistics user.
Zoning — IE and IH since April 2022
Prince George’s County’s new zoning ordinance took effect on April 1, 2022. It replaced five older industrial zones with two:
- Industrial, Employment (IE): light industrial, research and development, and employment uses, with design standards and buffers from residential
- Industrial, Heavy (IH): intensive industrial uses on larger sites where dust, noise, or truck traffic may affect neighbors
Some uses that were legal under the old code became nonconforming under the new one. The ordinance includes a process for certification of nonconforming use. If a building’s current or intended use does not fit its new zone, get that certificate or a zoning opinion before closing. The Prince George’s County Planning Department industrial zones page explains both zones.
Tenant changes often need a Use and Occupancy permit from the county’s Department of Permitting, Inspections and Enforcement (DPIE). Budget time for it in lease-up. A tenant who cannot get a use permit will not pay rent.
Physical specs lenders measure
| Spec | Small-bay flex (typical) | Mid-size distribution | Why it matters |
|---|---|---|---|
| Clear height | 16’–20’ | 22’–28’ | Racking and tenant fit |
| Dock-high doors | 0–2 per bay | 4–12 with levelers | Trailer compatibility |
| Drive-in doors | 1 per bay | 1–2 | Contractor and van users |
| Truck court | 60’–100’ | 120’+ | 53’ trailer turning |
| Yard / outdoor storage | Often valuable | Sometimes | Equipment and fleet parking |
| Power | 200–400 amp | 800+ amp | Fabrication vs storage |
| Sprinklers | Varies | ESFR on newer buildings | Insurance and tenant requirements |
Outdoor storage is a real income line here. Contractors and fleet operators near the DC line pay for fenced yard space. If zoning allows it, underwrite it separately from building rent.
Environmental diligence
Prince George’s County industrial sites include former auto repair, printing, fuel storage, and some older manufacturing. Jaken Finance Group requires a Phase I Environmental Site Assessment on industrial files.
| Item | Typical 2026 cost | When it applies |
|---|---|---|
| Phase I ESA | $3,500–$6,000 | Standard on industrial |
| Phase II borings | $12,000–$30,000 | Recognized environmental condition in Phase I |
| Underground tank removal | $15,000–$60,000+ | Former fuel or heating oil tanks |
| Asbestos survey | $2,000–$5,000 | Pre-1980 buildings |
The Maryland Department of the Environment oversees cleanup, including its Voluntary Cleanup Program. A recognized condition does not automatically stop a loan. An unpriced one does.
Bridge purchase, lease-up, and DSCR takeout
| Parameter | Bridge / hard money | Stabilized DSCR (investor) |
|---|---|---|
| Rate | 8.99%–13.5% interest-only | 5.75%–10.5% |
| Leverage | 65%–75% of cost | Up to ~70% of value on in-place NOI |
| Term | 12–24 months | 30-year fixed or ARM |
| Income used | As-is plus documented TI plan | Executed leases only |
| Close | 14–30 business days | 21–45 days after stabilization |
Owner-users who will occupy the building should look at SBA loans for owner-occupied commercial real estate instead.
Worked example 1 (composite) — Landover flex lease-up
Composite file, not a live quote. A 22,400-square-foot, 1984 block building off US-50 in Landover. Four bays of 5,600 square feet each, 20-foot clear, one dock and one drive-in per bay. One bay is leased to an HVAC contractor. Three are vacant after a printing company left.
| Line | Amount |
|---|---|
| Purchase | $3,250,000 |
| Roof repair, bay demising, office refresh, lighting | $285,000 |
| Phase I (clean) | $4,500 |
| Transfer and recordation taxes (buyer share of transfer plus recordation, planning) | $49,000 |
| All-in | $3,588,500 |
| Bridge at 70% of cost | $2,511,950 at 11.0% interest-only |
| Monthly interest when fully drawn | ~$23,026 |
Lease-up plan (10 months): the HVAC contractor renews at $16.00 NNN. Lease two bays to a food distributor and an electrical contractor at $17.50 NNN, and one bay to a government contractor for secure storage at $18.25 NNN. Stabilize at 100%, then underwrite 7% vacancy.
| Stabilized income (annual) | Amount |
|---|---|
| Gross potential NNN rent | $387,800 |
| Vacancy 7% | −$27,146 |
| Effective gross | $360,654 |
| Landlord costs (structural reserve, management, non-recoverable) | −$42,000 |
| NOI | $318,654 |
The appraiser supports $4,550,000 at a 7.0% cap rate. A DSCR takeout at 65% of value is $2,957,500. At an illustrative 7.25% rate over 25 years, annual debt service is about $256,500, for coverage of about 1.24x. The refinance retires the bridge and returns about $445,000 of equity before closing costs. Bridge interest over 10 months, with draws phasing in, runs about $215,000.
Worked example 2 (composite) — Capitol Heights yard and shop
Composite file. A 7,200-square-foot shop on 1.6 acres near the DC line in Capitol Heights. Zoned IE. The prior user was an auto body shop. The Phase I flags a former in-ground lift and a possible heating oil tank.
| Line | Amount |
|---|---|
| Purchase | $1,650,000 |
| Phase II and tank removal | $48,000 |
| Fencing, gravel yard, lighting, shop repairs | $165,000 |
| All-in | $1,863,000 |
| Bridge at 65% (tighter for environmental) | $1,210,950 at 11.75% interest-only |
The investor leases the shop and half the yard to a landscaping company at $11,500 a month, and the other half of the yard to a towing company at $6,000 a month. Both are three-year leases. Stabilized NOI is about $186,000 after taxes, insurance, and reserves. At an 8.0% cap rate, value is about $2,325,000. A DSCR refinance at 60% of value, about $1,395,000, retires the bridge with room to spare. Outdoor storage income made this deal. Confirm zoning allows the yard use before you count it.
Local risks — Maryland taxes, zoning, and coverage
Transfer and recordation taxes. Prince George’s County charges a 1.4% county transfer tax, the highest in the region, plus 0.5% state transfer tax and $5.50 per $1,000 recordation. The county can tax the loan amount when it exceeds the price. Confirm with title.
Assessment after sale. Maryland’s State Department of Assessments and Taxation reassesses on a three-year cycle, and a recorded sale informs the next assessment. Model the new tax bill, not the seller’s.
Nonconforming uses. A building that worked for its old tenant under the pre-2022 code may not allow your new tenant’s use. Get a zoning opinion.
Use and Occupancy permits. Every new tenant may need one from DPIE. Build 30 to 90 days into each lease-up.
Federal contracting cycles. Government contractor tenants are steady until a contract ends or a budget stalls. Diversify your tenant mix.
Stormwater. Redevelopment can trigger stormwater management upgrades under county and state rules. Get a civil engineer’s opinion before you plan yard paving.
File checklist
- Purchase contract with at least 21 days for Phase I
- Zoning verification letter or certification of nonconforming use
- Rent roll, leases, and deposits
- Dock, door, and clear height schedule
- TI budget by bay
- SDAT assessment and tax bills
- Phase I consultant engaged
- Title quote with transfer and recordation taxes
- Exit memo: DSCR, bank takeout, or sale
How Jaken Finance Group processes a Prince George’s County warehouse file
- Scenario. Address, price, occupancy, door schedule, and exit. Tell us what you need.
- Term sheet. Sized to as-is value plus documented TI.
- Diligence. Appraisal, title, Phase I, zoning, and insurance.
- Close. Typically 14–30 business days on a clean file.
- Draws. TI and repairs on milestones.
- Takeout. DSCR at 5.75%–10.5% when leases are signed.
Run numbers on the commercial property calculator first.
Related: industrial and warehouse property loans · hard money lenders Prince George’s County · DSCR loans Prince George’s County · small commercial building loans Maryland · commercial lending Washington DC · DC, Maryland, and Virginia private lending law guide
Call (833) 264-7776 or submit a deal.
Rates and terms are offered only to qualified borrowers and may change without notice. All loans are subject to full underwriting. Rent and tax figures are planning estimates, not appraisals or tax advice. Jaken Finance Group finances non-owner-occupied investment property on this program; owner-occupied files use separate SBA and owner-user programs. Examples are composites for education.