Wilmington Market Reports

Wilmington Office Market

As the vacation season ends, the Wilmington market is experiencing a noticeable return to the office. Commuter traffic has increased, and office key swipes are trending upward. Other factors, like retail vacancy, indicate improving conditions. The Wilmington Central Business District’s current retail vacancy rate of 2.3% is 70 basis points lower from the pandemic era high in the first quarter of 2021. A more extensive assortment of amenity offerings bodes well for future occupancy increases. The general market had negative office absorption in the third quarter despite Wilmington’s improved activity metrics. In total, 61,496 square feet were given back, which increased year-to-date absorption to negative 153,349 square feet. Class A properties surrendered 52,133 square feet, and Class B offices had 16,179 square feet of negative absorption. The B Class outperformance compared to high-quality space is due to the nearly 260,000 square feet removed from the market at 1007 N. Orange Street due to residential conversion.