Delaware Office Market
Incyte’s purchase of Bracebridge I and III removed more than 500,000 square feet of vacant space from market inventory, thus reducing the vacancy rate by 270 basis points to 18.5% in the second quarter despite negative 7,038 square feet of net absorption year-to-date. The available space at Bracebridge I and III had been marketed at an asking rent of $27.50/SF—above the market’s average—and thus its removal also depressed the market’s overall weighted average asking rental rate to $25.69/SF, a decline of 0.7% from the prior quarter and 1.0% from a year ago. Nearly 100,000 square feet of leases were signed during the second quarter, putting the region behind the leasing pace at this time a year ago. Combined with the approximately 140,000 square feet of leasing in the first quarter, the region has registered approximately 240,000 square feet of leasing through the first half of 2024.