Northern Delaware is showing strength in industrial real estate leasing activity, commecial real estate firm CBRE reported.
In northern Delaware, the vacancy rate plummeted 8.6 percent since one year ago to 3.3 percent. The asking rate for rent in northern Delaware was the highest in the region.
In northern Delaware, companies such as DowDuPont and M Cubed helped take down larger blocks of space and led to the most active quarter of the year, CBRE reported.
The tighter conditions led to Harvey, Hanna and Associates, Newport, constructing the first “spec” industrial building in several years in the New Castle area. The 100,000 square foot structure will be completed next year.
Neighboring Chester County also has a low vacancy rate. That could lead developers to put up a speculative building, CBRE noted.
The largest deal in the third quarter was that the purchase of a portfolio that consisted mainly of fully occupied flex product in Marcus Hook, PA, near the Delaware line.
One driver of the market, manufacturing, has been fairly stable, although owners indicated in a report by the Federal that production expansions are in the works.
Longer term in Delaware, tracts suitable for development will emerge with Harvey, Hanna’s purchase of the former General Motors plant site near Newport and from a Missouri company that is preparing the former Evraz Claymont steel mill for future development.