The commercial real estate landscape in Maryland’s Anne Arundel County offers a clear example of how secondary markets are adapting to post-pandemic realities. While major metropolitan areas face dramatic shifts in office demand and retail patterns, smaller markets like Annapolis are undergoing their own distinct evolution.
Ryan Brassel, Principal at Rosso Commercial, a boutique brokerage based in Annapolis, has observed firsthand the ways in which his market has changed over recent years. His firm’s experience provides insights into broader trends affecting secondary markets across the country.
Rosso Commercial differentiates itself from larger competitors by maintaining a 100% brokerage model without ownership or property management interests. “We don’t own buildings. We’re not property managers,” Brassel says. “Some of our competitors have different business models, and they have those different services, or they own building their own product.”
This approach has proven valuable during uncertain times, allowing the firm to focus on a geographic area within an hour and a half of Annapolis and deliver a high level of service. Their local focus gives them an edge in secondary markets, where larger firms may struggle to provide the same depth of expertise.
The strategy reflects a broader trend toward specialization and local knowledge as market conditions become more complex. “We like to say we’re the small guys, but at the same time, we can fight with the best of them,” Brassel notes.
One of the most notable trends in Annapolis has been a surge in retail activity, primarily driven by substantial multifamily development over the past five years. The transformation of Riva Road, once dominated by corporate offices and a former mall, is a prime example.
“There’s been several units delivered in the last five to ten years now into the thousands,” Brassel reports. “That’s really going to help these businesses, and because of that, the bigger chains are now coming into the market saying, ‘Yeah, I see the densities here. We want to be here.’”
This growth has led to intense competition among brokers and tenants. “Retail right now is very much on fire, very competitive,” Brassel explains. “Any deals I’m working on, there’s at least two or three other groups in the same room, and we’re all going for the same thing.”
The food service sector is particularly active, though Brassel notes concerns about oversaturation. “There’s so many chicken concepts. How many can you have in one town or any one area?” Some restaurants have struggled to establish themselves, with several closing within a year due to high competition in compact areas.
While retail is thriving, the office market in Anne Arundel County faces challenges similar to those in larger cities. Despite advantages such as government employment, proximity to BWI Airport, and the US Naval Academy, office demand has fallen sharply.
“You could see it coming,” Brassel says of the office market downturn. “DC, the major cities got hit first, but all of a sudden, like 2023-2024, it was kind of like you could see it coming.”
The firm has handled several distressed office transactions, including a medical office building left 50% vacant after losing a major tenant, and a mixed-use property where owners faced financial strain due to higher interest rates and below-market rents.
These situations reflect broader dynamics in secondary office markets nationwide. Properties that previously provided stable returns for long-term owners now face fundamental challenges, often requiring significant new investment or sale to owners with a different approach.
A significant trend Brassel has observed is generational real estate families choosing to sell rather than continue ownership. “I’ve seen it a couple different times where you have maybe two siblings, and they just want to get their money and get out. They want nothing to do with continuing to run it.”
This trend is not limited to elderly owners. “Some of these folks are even just maybe a little older than me or my age,” Brassel says. “If you’re in your 40s or younger, and you’re here like, to me, I’m kind of like, you can have monthly mailbox checks come in essentially.”
The shift in perspective among younger generations creates opportunities for family offices and regional investors willing to manage properties that others no longer want to oversee.
The buyer pool in Anne Arundel County reflects its location between major metropolitan corridors. Recent transactions have included 1031 exchange buyers, family offices, and regional developers, such as partnerships of Naval Academy graduates reinvesting in Annapolis.
“There is some family office. There’s more regional developers getting involved,” Brassel explains. “Some of them are partners, small partnerships. One of our good clients is a pair of Navy grads, and they’re reinvesting into the city where they went to school.”
This personal connection to the area appears to influence investment activity, suggesting that secondary markets may benefit from buyers with local ties who better understand the market than purely financial investors.
Anne Arundel County’s unique geography plays a significant role in shaping its real estate market. “We have a lot of waterway. We got the Chesapeake Bay rivers. It does eat up some real estate,” Brassel explains.
Because of this scarcity, redevelopment is more common than new construction. “You’re not seeing a plot of land being constructed and going vertical very often, except for maybe a couple along the river road corridor. It’s definitely more or less a redevelopment play.”
While these constraints limit new supply and can benefit existing property owners, they also pose challenges for businesses looking to grow or relocate within the area.
Annapolis has benefited from demographic shifts accelerated by the pandemic. “COVID helped Annapolis,” Brassel says. “We’ve seen operators from DC, people coming from other states, moving into town because they wanted to get out of the big city and go to something a little smaller, more manageable.”
The area’s combination of historic character, waterfront access, and proximity to major employment centers has attracted both residents and businesses. “When a lot of people come to Annapolis, they’re maybe pleasantly surprised, because you get that old kind of historic feel, like Charleston, but at the same time, you do have that quality of life that a lot of people are looking for.”
The Annapolis market illustrates how secondary markets are managing post-pandemic changes with a mix of challenges and opportunities. While office demand remains subdued, retail growth driven by residential development and quality-of-life factors continues to attract investment.
For real estate professionals in similar secondary markets, Annapolis shows that success increasingly depends on deep local knowledge, adaptable service models, and the ability to spot demographic and economic trends that may not be obvious from national data.
The evolution of the market also highlights the importance of understanding local constraints and advantages that can create unique investment opportunities for those willing to look beyond major metropolitan areas. As Anne Arundel County continues to adapt, those with strong community ties and a clear grasp of local dynamics are likely to find the greatest success.
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