Delaware Office Market
After a few years of occupancy losses, vacancy appears to be stabilizing in the Delaware office market, bolstered by Incyte’s purchase of two downtown buildings formerly owned by Bank of America: Bracebridge I at 1100 N. King Street (372,118 SF) and Bracebridge III at 1100 N French Street (145,189 SF). The $47M sale ($92/SF) is a positive indicator for the office market. Incyte’s influence on Wilmington’s office market was swift and substantial, reducing the Class A vacancy rate by one-third, from 30.5% to 20.9%. There was a net absorption of 60,777 square feet in Q1, with Wilmington North leading demand at 52,906 SF. Vacancy rates decreased by 40 basis points to 19.0%. This decline is primarily attributed to lower vacancies in the Wilmington South (14.6%) and Wilmington West (14.7%) submarkets.