Commercial Real Estate Market in Annapolis, MD
Updated monthly: sale, lease, property records, location trend, and more… · Last update: August 31
202 active listings and 3,370 off-market properties in Annapolis, MD. Commercial property asks $301/SF to buy and $34.38/SF/Yr to lease.
Market Trends
Annapolis, MD spans 46.1 square miles in Anne Arundel County, Maryland. Figures below refresh monthly; last updated 31 August 2026.
Office
Office vacancy in Annapolis, MD runs 20.2% across the South region in 2025, up from 14.4% in 2019.
Vacancy Rate % in South region
Retail
Retail vacancy in Annapolis, MD runs 5.4% across the South region in 2025, down from 7% in 2020.
Vacancy Rate % in South region
Industrial
Industrial vacancy in Annapolis, MD runs 7.9% across the South region in 2025, up from 6% in 2019. Nearly 2.3x the 2022 low of 3.5%.
Vacancy Rate % in South region
Multifamily
Multifamily vacancy in Annapolis, MD runs 11.3% across the South region in 2025, up from 8.5% in 2022.
Vacancy Rate % in South region
Zoning & Land Use
Land Use Mix share of zoned land by category
- Residential 84.5%
- Commercial 5.1%
- Mixed use 4.2%
- Industrial 4.2%
- Civic 1.7%
Largest Zones share of zoned land by district
Single Family Residence
General Residence
Single Family Residence
Single Family Residence
Single Family Residence
Annapolis, MD zones 4,559 acres across 31 districts. Commercial zoning covers 5.1% of zoned land, residential 84.5% and industrial 4.2%. The largest single district is Single Family Residence at 29.2%. For commercial buyers the practical constraint is that only 9.2% of land carries a commercial or industrial designation.
Single Family Residence (R2)
R2-NC (Neighborhood Conservation District). Development Review and Zoning I have my eye on a commercial building for a possible coffee shop but am apprehensive about signing a tenant lease. What should I do? Contact Planning and Zoning to determine if a coffee shop is permitted at this location and to see if there are any other zoning requirements. Iron out…
Market overview
Demographics & Economy
Annapolis, MD has 92,803 residents in 43,050 households. Density runs 2,013 people per square mile. Median household income here is $123,910 and median gross rent $2,011 a month.
92,803
Population
43,050
Households
2.2
Avg Household Size
42
Median Age
59%
College-Educated
94%
High-School Grad
46.1 sq mi
ZIP Area
2,013
Density / Sq Mi
$123,910
Median Household Income
$67,202
Median Earnings
$2,011
Median Rent
$560,441
Median Home Value
Tools
Lease vs Buy Breakeven
At $34.38/SF/Yr lease vs $301/SF buy → buying wins if held > 1.1 years.
At a 11.4% gross asking yield the payback reads short relative to leasing. Assumes 30% down at 6.5% fixed, 2% a year in taxes and upkeep, 3% appreciation, 5% opportunity cost, 2% closing plus 5% selling costs, and a 3% annual rent escalator.
Nearby Markets
| Market | Average Sale Price, $/SF | Average Lease Price, $/SF/Yr |
|---|---|---|
| Naval Academy | — | — |
| Cape Saint Claire | — | — |
| Highland Beach | — | — |
| Arnold | — | — |
Commercial property in Annapolis, MD asks $301/SF.
Frequently Asked Questions
What is the average price per square foot for commercial property in Annapolis?
Commercial property in Annapolis, MD asks an average of $301 per square foot. The 4 most recent recorded sales traded at a median of $600/SF.
How much does it cost to lease commercial space in Annapolis?
Asking lease rates in Annapolis, MD average $34.38 per square foot per year.
Is it cheaper to lease or buy commercial space in Annapolis?
Buying beats leasing in Annapolis, MD if the property is held longer than 1.1 years, comparing $34.38/SF/Yr asking rent with $301/SF asking price. The model assumes 30% down at 6.5% fixed, 2% of value per year in taxes and upkeep, 3% appreciation, 5% opportunity cost on the cash and a 3% annual rent escalator.
What zoning applies to commercial property in Annapolis?
Annapolis, MD zones 4,559 acres across 31 districts, of which 5.1% is commercial and 4.2% industrial. The largest single district is Single Family Residence at 29.2% of zoned land. R2-NC (Neighborhood Conservation District). Development Review and Zoning I have my eye on a commercial building for a possible coffee shop but am apprehensive about signing a tenant lease. What should I do? Contact Planning and Zoning to determine if a coffee shop is permitted at this location and to see if there are any other zoning requirements. Iron out… Residential zoning covers 84.5% and open space 0%.
Where does Realmo's Annapolis market data come from?
Realmo compiles Annapolis, MD figures from 7 recent recorded sales, 122 active sale listings, 80 active lease listings, 3,370 tracked off-market properties, the current Annapolis zoning release. Sale and lease figures refresh monthly; vacancy annually. Last updated 31 August 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 122 active for-sale and 80 active for-lease listings in Annapolis, MD. These are ASKING figures from live listings, not closed-transaction prices, and a segment carried by a handful of listings reads as indicative rather than an average.
- Vacancy rates
- Published per-sector market series, taken at the metro level where one exists and otherwise at the Census-region level — a chart reading "in <region> region" is a regional number, not this city's.
- Zoning and land use
- The current municipal zoning release: 4,559 zoned acres across 31 districts. Shares are of zoned land, so parcels the release leaves unclassified are excluded from the mix.
- Refresh
- The monthly aggregates close at the end of the previous month, so 31 August 2026 — not today — is the honest last update.
- Known limitations
- office vacancy is reported at South region level, retail vacancy is reported at South region level and industrial vacancy is reported at South region level.
- Coverage
- Metrics below the 10-observation threshold fall back one geographic level. The geography used is named on each figure.
Compiled by the Realmo Data team · reviewed 31 August 2026 · report a data issue
