Newmark Grubb Knight Frank reported negative absorption of office space in the first quarter in the Delaware Valley, although the Wilmington-area market emerged as something of a bright spot.
After four consecutive quarters of negative growth, tenant activity picked up in the Wilmington Central Business District (CBD), NGKF reported.
The Buccini/Pollin Group announced that it purchased the DuPont Building from DuPont and Chemours would sign a long-term lease. The submarket reported 35,361 square feet in occupancy gains over ninety days that pushed down the vacancy rate.
The gains did not benefit Wilmington CBD rents with the Class A average rental rate flat from year-end 2016 and a decline in the Class B average. Wilmington north and
Wilmington north and south submarkets reported 48,407 square feet in positive net absorption.
“Rents will continue to move upwards in the suburban Wilmington submarket over the next twelve months,” said Wills Elliman, NGKF senior managing director, “but expect flat rent growth in the CBD.”
The overall vacancy rate in the region rose, due to tenant consolidations in the Philadelphia suburbs and Philadelphia Central Business District.
The Camden, NJ waterfront was in the news with the announcement of a future tower owned and occupied by a partnership of Conner Strong & Buckelew, NFI and The Michaels Organization.
Anne Klein, NGKF executive managing director notes, “While this new project is good news for Camden’s revitalization, the surrounding submarkets will be negatively impacted over the next two years by the departure of these firms along with Subaru and American Water’s consolidation to Camden.”
NGKF’s 14,100 professionals operate from more than 400 offices in established and emerging property markets on six continents.
NGKF is a part of BGC Partners, Inc., a global brokerage company servicing the financial and real estate markets.