A report from Colliers shows the industrial real estate leasing market in northern Delaware is improving after a long period of sluggishness. Colliers operates an office in Wilmington.
The second quarter report showed that the vacancy rate decreased from 8.6 to 7 percent. The figure was made more significant since it came after a loss of tenants at the beginning of the year.
Asking rent continues to trend upward but at a slower rate.
The biggest transaction involved Del Monte Fresh Produce purchasing a 178,221-square-foot building, which will serve as the company’s flagship distribution center. In addition, Partners International relocated its Northeast operations to a 148,000-square-foot facility in New Castle.
Datwyler Sealing Solutions’s also has a 275,000-square-foot manufacturing facility under construction in Middletown.
Large flex space manager and developer Harvey Hanna and Associates confirmed it is building a 100,000 square foot structure at the Delaware River Industrial Park in New Castle. The multi-tenant new construction project is believed to be only the second to be built since 2012.
A report also indicated that Harvey Hanna will buy the former GM Boxwood site near Newport. Harvey Hanna declined to comment on the report.
The Colliers report indicated that the weighted average asking rent increased slightly from $4.98 in the first quarter to $4.99 per square foot.
Rents for older warehouse space range from $3.55 to $4 per square foot. Newer generation warehouse ranges from $4.25 to $6 depending on unit size.
Flex space that can include offices ranges from $6.50 to $9.50 per square foot, Colliers reported.
