Downtown vacancy rate up slightly, Colliers report indicates

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A report from  Colliers  showed that Downtown Wilmington’s vacancy increased slightly from an adjusted 16.2 percent to 16.3 percent in the second quarter.

Downtown Class A buildings had stable vacancy at 13.3 percent, but the Class B vacancy increased from 24.7 to 25  percent.

Suburban Class B buildings also had a full percentage vacancy increase during the second quarter from 15.6 to 16.6%. Tenant expansions helped to a slight decrease in the suburban Class A vacancy rate from 8.1 to 8 percent.

The weighted average asking rent in Downtown Wilmington decreased slightly to $25.81 per square foot, full service. The suburban average increased to $24.21 per square foot. As more new construction and renovated space come online, the suburban average will continue to increase.

Tenants continue to push for shorter-term deals, but are meeting resistance from landlords who require longer terms to justify ever-increasing improvement costs., the Colliers reported.

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In the suburbs, the  60,600-square-foot building at 2951 Centerville Road was completed

The project was partially pre-leased by Bank of America and Merrill Lynch. The office portion of the mixed-use Linden Hill development will be completed in the third quarter.

Delle Donne & Associates is renovating two of the former AstraZeneca buildings at 1800 Concord Pike. Blocks of 104,488 and 386,460 square feet will be available later in 2018.

Pettinaro is renovating two buildings at Barley Mill Plaza, totaling 50,000 square feet for availability in the fourth quarter.  

The largest lease during the second quarter was AAA’s renewal of its building at 1 River Place.

The majority of the suburban deals were tenants moving within the market and expanding.

Hanging over the downtown market is the sale of Bank of America’s Bracebridge II and III, which is pending and is rumored to be acquired by an investor for a short-term, sale-leaseback transaction.

Rockwood Office Park and AIG’s Courthouse Square were under an agreement. The 15-story 2200 Concord Pike (former Rollins-Astra Zeneca building) is also on the sales market.

Colliers has an office in Wilmington.

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