Leasing activity modest as industrial space remains in tight supply in New Castle County

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Industrial real estate leasing activity was modest in New Castle Count in the first quarter.

A report from Newmark Knight Frank (NKF) reported that the county saw a little less than 20,000 square feet of positive absorption in first-quarter of 2019.

The low square footage was indicative of a market where there is little available space, the company noted.

The vacancy rate in New Castle County was 2.6 percent in the first quarter.

The Greater Philadelphia and the I-81/I-78 Corridor saw 4.1 million square feet of positive absorption in the first quarter. The activity was driven by tenant demand for newly delivered, state-of-the-art warehouse/distribution space, NKF reported.

NKF Senior Managing Director Neil Shupak said, “Good space is selling and leasing for record prices and in a short period of time. I do not recall a seller’s/landlord’s market this strong in my 44-year career.” Average asking rents rose slightly quarter-over-quarter to $5.40 per square foot and are expected to continue to grow in 2019.

Industrial demand in the Greater Philadelphia region was most pronounced in the Southeastern Pennsylvania market and particularly in Berks County, which borders the I-81/I-78

NKF has an office in Wilmington.

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