Delaware Office Market
Total net absorption for the Wilmington office market registered negative 31,804 SF during the fourth quarter of 2025; however, positive absorption earlier in the year brought 2025’s year-to-date absorption total to 75,667 SF. A combination of strong absorption over the year, coupled with Wilmington University’s purchase of the fully vacant 3 Beaver Valley Road, pushed vacancy down 190 basis points over the past 12 months from 19.6% to 17.7% as of the fourth quarter of 2025. Direct asking rents declined 440 basis points over the past year from $30.54/SF to $26.14/SF as of the fourth quarter, marking the first annual rate compression since 2020. While this decrease is notable, it is largely due to Wilmington University’s purchase of 3 Beaver Valley Road. The fully vacant building had been offered at $31.50/SF, so the removal of a large block of vacancy at an above-average rate was a significant factor in the rate decline.