Delaware office market sees leasing as blocks of space enter market

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The northern Delaware office leasing market saw leasing activity, which was offset by blocks of space opening up, according to a report from Newmark Knight Frank Smith Mack.

PHOTO pheαnix – off 6/29 – 7/8 / Foter

The firm operates an office in Wilmington.

Vacancy rates are up slightly quarter-over-quarter in the Northern Delaware market. Both the Wilmington and New Castle County submarkets saw increases in space on the leasing market. That resulted in a net loss of 112,100 square feet of absorption. The quarter closed with an overall vacancy rate of 19.1 percent and an asking rental rate of $21.22 per square foot.

In Wilmington, a new 29,800 square foot sublease at the Nemours Building at 1007 Orange Street) and second  floor space at 1105 N. Market St. became available , contributing to the submarket’s increase in vacancy rate to 21.6 percent. Leasing activity was seen at the Renaissance Center at 405 N. King St. where the Delaware State Bar Association took approximately 9,300 square feet  and several other transactions were reported at the PNC Bank Center (222 Delaware Avenue) and 1201 N. Market St.

New Castle County’s northern submarket saw activity this quarter, with a new 8,000 square foot lease for Synchrogenix Information Strategies Inc. at Two Righter Parkway and several new leases at Bellevue Park Corporate Center. The area closed the quarter with approximately 23,700 square feet of positive absorption. It was the only Northern Delaware submarket to make gains this quarter.

New Castle County South closed the quarter with an overall vacancy rate of 21.4 percent, the highest vacancy of the three New Castle County submarkets.

In New Castle County West, new sublease space became available at 1013 Centre Road and several new spaces came online at 4550 New Linden Hill Road, offsetting leases at 2751 Centerville Road and 4001 Kennett Pike, and contributing to the submarket’s net loss of 23,700 square feet of absorption in the second quarter.

The vacancy rate in New Castle County West is just 9.6 percent overall and the submarket continues to command the highest asking rents in the Northern Delaware market, $24.13.

Although leases are being signed throughout the region, submarkets are still plagued by large blocks of space becoming available, counteracting any gains  the brokerage firm reported.

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