New Castle County industrial real estate market lags in 1st quarter

The  New Castle County industrial real estate market had the highest vacancy rate in the region, according to first quarter reports from two brokerage firms.

New Castle County closed the quarter with 74,047 square feet of negative absorption, ending two consecutive quarters of occupancy gains, according to a report from Newmark Grubb Knight Frank, NGKF.

Occupancy losses were concentrated in warehouse/distribution properties, which posted 126,522 square feet in negative absorption.

The NGKF report noted that  Bloom Energy vacated 45,422 square feet at 200 Interchange Boulevard, Newark and Alanx Wear Solutions Inc. moved out of the 44,884-square- foot 101 Lake Drive, Glasgow.

NGKF reported a vacancy rate of about 20 percent for  New Castle County,  well above the rate for neighboring counties in the region. A quarterly reported CBRE recorded a  10.6 percent rate for New Castle County. CBRE tracks less industrial 

On the plus side,  New Castle County’s overall average rent increased over the past three months, NGKF reported.   Higher-than-average asking rents were reported at  70 McCullough Drive, 100 Paper Place and 3065 New Castle Avenue.

Both the CBRE and NGKF reports noted that southern New Jersey helped drive nearly 2 million square feet of leasing activity in the region.

Southern New Jersey has benefitted from a central location in the region. The state has also been aggressive in financial incentives.

The  CBRE report covers  a  region extending from from New Castle County to southern New Jersey and Bucks County PA. The NGKF report also included Berks County (Reading) and Lancaster County.

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