Currently, my hot water heater is located literally in the middle of
my basement which obviously is very inconvenient. I am considering
moving it to a location that is currently between by gas furnace and
gas dryer. There will be ~2-3 feet between each.

e.g.

Furnace ---2.5ft-- Hot Water ---2.5ft-- Dryer

Assuming all code is applied when moving it (e.g dielctric couplers,
gas drip pipe, vent slope/size, etc.), does the location of the hot
water heater to the other gas devices cause an issue? My assumption
is no because I see many apartment with everything crammed into a
untility closet. My basement is considerbly larger than a utility
closet.

Thanks for any insight you may have !