Vacancy rates for retail space in northern Delaware remain slightly above the regional average, according to a report from CBRE.
The two Delaware zones tracked by CBRE, Christiana and Concord Pike (Route 202) posted vacancy rates of 9.9 percent and 9.3 percent respectively.
That was above the regional rate of 8.8 percent.
Lancaster and Harrisburg, PA posted rates of about 11 percent, with Cherry Hill New Jersey more than 14 percent. The Willow Grove/Jenkintown area had a 2.5 percent vacancy rate.
The CBRE report noted that more retail inventory is coming online, leading to concerns that oversupply will be an issue, especially with the highly publicized closing announcements by major retailers.
However, the report noted that much of the space is coming from redevelopment projects that are more attractive to potential tenants than aging buildings.
The redevelopment also includes the announcement of new tenants for closed stores of Macy’s, Acme and other retailers. Fitness centers and health care centers have occupied some of that vacated space in parts of the Delaware Valley.
The Christiana area is continuing to see the build out Christiana Town Center. This week, it was disclosed that Main Event, a U.S. bowling, and entertainment chain, will locate to space in the Fashion Center next to the mall.
Christiana Mall has seen the loss of some high-profile tenants, like J. Crew, but maintains a high vacancy rate.
Concord Pike, which remains a popular retail area, is seeing the exit of some retailers and restaurants, with other businesses relocating to upgraded space.
