The northern Delaware office leasing market posted an increase in its third-quarter vacancy rate, although deals in the fourth quarter could lead to a strong finish for 2017.
According to the report from Colliers, the overall vacancy rate increased from 13 to 13.6 percent.
Year to date occupancy declined as gains in the suburban market could not offset the losses in downtown Wilmington.
Downtown Wilmington’s vacancy rose from 17.6 to 18.2 percent with increases in both Class A and B space. The suburban market, which had been strong during the first two quarters, saw a vacancy increase during the third quarter that rose from 9.1 to 9.6 percent.
The main reason for the increase in the The suburbs was CSC’s move to its new building in Little Falls Corporate Center and vacating another building
Site work has commenced on the new 60,600-square-foot office building on Centerville Road across from Little Falls Center. Bank of America has pre-leased the building. Incyte’s headquarters expansion is nearing completion. Employees displaced for a time have been housed in space across the line in Pennsylvania.
The weighted average asking rent decreased in Downtown Wilmington to $25.84 per square foot. Buildings such as 222 Delaware Avenue and 1201 N. Market are reducing the asking rents.
The weighted average asking rent in the suburbs increased to $24.62 per square foot. The fourth quarter has a healthy pipeline of pending transactions that should produce a strong finish to 2017, according to Colliers, which has an office in Wilmington.
In other developments:
- Sallie Mae will be taking HSBC space when the company closes its Churchman’s Corporate Center operation.
- Merrill Lynch will be moving from downtown Wilmington to a new building on Centerville Road.
- Connolly Gallagher will be relocating it moves from 1000 N. West Street into Merrill Lynch’s space in 2019.
- Coventry Health renewed and expanded its footprint at Iron Hill Corporate
- Center.Business Interface will be opening a job training center at King Street Plaza.
- The investment sales market was quiet during the third quarter. The Comcast-leased building at 300 N. Wakefield Drive was sold at auction.
- Stonemont Financial Group acquired the majority interest in a 98-building, multi-state portfolio, which included the AAA-leased building in Christian Corporate Center.
- Bank of America’s Bracebridge I and Bracebridge III buildings in downtown Wilmington are under agreement and are expected to settle in the fourth quarter.
