"We want to try and utilize all of our resources ... We feel we can serve the public a lot better if we pull all those resources under one roof," Twigg said.
Twigg Cycles is now at 34 N. Cannon Ave. and Honda of Hagerstown is at 19828 National Pike.
Twigg said he will continue to lease the building at the intersection of Interstate 70 and U.S. 40 for storage and warehousing.
He said he is negotiating to sell the Cannon Avenue building, but would not say to whom.
The new single-story building will include six showrooms and a 2,000-square-foot mezzanine for offices, Twigg said.
"We hope all of our customers and previous customers will be excited about it," he said.
Twigg said the motorcycle dealership will sell the products of six major manufacturers - Yamaha, Kawasaki, Suzuki, Polaris, Honda and Seadoo.
In addition to motorcycles, Twigg sells all-terrain vehicles, small boats and personal watercraft such as Kawasaki Jet Skis, store officials said.
Twigg said he also sells power equipment such as lawn tractors, snow blowers and generators as well as parts, accessories and service for its products.
The two companies employ 20 to 30 people, he said. The family business began in 1936.
The Hagerstown Planning Commission approved the site plan and subdivision of the property by separate 5-0 votes on Wednesday night, said Matt Davis, a city planner.
Commission member Alfred W. Boyer was absent. Member Douglas Wright said he abstained because of a business connection his firm, GS Images, has with Twigg.