CBRE report shows office leasing in suburbs outpacing the city

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screen-shot-2016-10-17-at-10-44-58-pmA report from CBRE showed New Castle County suburbs outpacing downtown Wilmington in luring commercial tenants.

The commercial real estate company has an office in Wilmington.

Only three submarkets posted significant occupancy losses in the Delaware Valley –  Market West, Independence Hall, and the Wilmington  Central Business District. Wilmington saw Ashland, formerly Hercules, vacate space in downtown in Hercules Plaza.

Northern Delaware suburbs did see occupancy gains.

The Wilmington Central Business District fared better when it came to rental rates with increases outpacing figures in the suburbs.

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Downtown Wilmington has been aided by tenants seeking space in “trophy buildings” that command higher rents.

CBRE reported that in the Philadelphia area, the average asking rates for office space continued their upward climb with yet another quarter of positive growth marking the eighth consecutive quarter of gains.

With occupancy growth appearing to slow down it is possible that the region could see a slowdown in rental rate growth, CBRE reported.

Although rent growth may have slowed in the premier submarkets, some submarkets were still well below pre-recession levels,” the reported noted.

 

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