Wilmington Office Market
Absorption in the Wilmington market was -12,903 square feet and leasing activity was described as sluggish in the summer months but increased after the Labor Day weekend. This is typical for the market as average absorption in the third quarter going back 5 years is only 4,702 square feet. Large leases by Deluxe Corporation and Kimmel, Carter, Roman & Peltz, PA decreased space requirements in the market to its lowest level since 2021. Vacancy increased marginally quarter-over-quarter, rising 10 basis points to settle at 21.6%. Sublease vacancy decreased from 1.6% in the second quarter of 2023 to 1.4% in the third quarter of 2023. The term remaining on some sublease space expired and became directly available.