Delaware Office Market
Total net absorption for the Wilmington office market registered 4,846 SF during the first quarter of 2026. With modest net absorption, vacancy remained unchanged from year-end 2025, to register 17.3% as of the first quarter. With positive absorption in 2025 and Wilmington University’s purchase of the fully vacant 3 Beaver Valley Road during the fourth quarter, vacancy has declined 70 basis points over the past 12 months. This is well below the market’s peak vacancy of 22.0% recorded in the first quarter of 2024. Direct asking rents declined 310 basis points over the past year to $25.91/SF as of the first quarter, continuing a trend of rate compression that started in 2025. While this decrease is notable, it is largely due to Wilmington University’s purchase of 3 Beaver Valley Road during the fourth quarter of 2025. 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.
Download Delaware Office Market Report 1Q26