Wilmington Office Market
| Average Asking Rent (Price/SF) | $26.07 |
| Vacancy Rate (%) | 19.0% |
| Net Absorption (SF) | -12,921 |
The Wilmington office market had a slow fourth quarter, as shown by absorption figures and recorded transactions. Many new leases projected to have 22Q4 occupancy slipped because of labor contracts and supply chain issues. In addition to an already-soft rental market, worsening public health conditions due to rising flu and COVID cases, along with the holidays, left the market flat. Sublease space reductions in the Central Business District (CBD) were observed, but sublet additions in Southern Wilmington erased gains for the entire market. As a result, quarterly absorption in the Wilmington office market was negative 12,921 square feet, with the CBD being the only submarket with positive absorption. Most of Downtown’s gains were due to the 15,136-square-foot lease signed by McDermott, Will & Emery at the Brandywine Building at 1000 N. West Street. This relatively slow quarter meant Wilmington ended 2022 with a year-to-date absorption of negative 166,270 square feet.
Download Wilmington Office Market Report 4Q22