It's fine to do so provided the space (measurements) works. Since your refinishing your cabinets, I assume in place, the floor underneath won't need a redo?

If you're going with a panel, then you need to buy one panel ready or capable of accepting a panel (typically panels are 3/4" thick).

The electrical outlet is preferred placed in the adjacent cabinet,especially if your new DW is European for fit reasons.

Do you know your toe kick height? Probably want to ensure it will work with the new DW, although perhaps your cabinet maker can cut it to size or figure out alternative. You don't want the toe kick too high for the paneled door to properly open and catch.

Thanks so much @Sparklingwater! Correct, the floors will not need any redo. Didn't even think about the toe kick so I will make sure to take those measurements as well.
Appreciate your feedback!