Space in short supply in northern Delaware industrial real estate market
Northern Delaware continues to see a decline in the industrial real estate market, according to a quarterly report from Newmark Knight Frank(NKF)
Vacancy in the New Castle County, industrial market declined for a ninth consecutive quarter.
Despite warehouse vacancy climbing 20 basis points to 3.6 percent, the sector remains very tight.
Warehouse rents increased by $0.09 per square foot from the second quarter to a record high of $5.08 per square foot, the report noted
New Castle County’s warehouse inventory will expand once the redevelopment of the Boxwood site gets underway, according to the report.
Harvey Hanna & Associates plans to demolish the 2.8-million-square-foot former General Motors plant and replace it with three million square feet of distribution space spread over four buildings.
Further down the road is the redevelopment of the former Claymont Steel site, which could bring additional industrial space to the market.
The combined Greater Philadelphia and the I-81/78 Corridor markets closed the third quarter periodwith five million square feet of absorption.
Warehouse properties accounted for 4.5 million square feet of this quarter’s occupancy gains. Overall vacancy declined 10 basis points to 6.2 percent, while warehouse vacancy decreased 20 basis points to 7.0 percent.
A total of 4.3 million square feet was delivered during the third quarter with most of it centered in the I-81/78 Corridor market.
The New Castle County market has seen little newly constructed space go on the market in recent years.
NKF has an office in Wilmington.