The Newmark Q1 2021 Wilmington Office Report shows an economy in recovery, even as the definition of office space continues to evolve.
The report looks at commercial real estate trends in greater Wilmington during the quarter that marks one full year since the beginning of the COVID-19 pandemic.
Wilmington maintained the highest use of office space in the Greater Philadelphia region, with 25% actual occupancy in Q1 2021. Vacancies went up from 16.7% to 18.4% year-over-year, while the overall size of the office market got slightly smaller, with two obsolete office properties on Foulkstone Road demolished. The Wilmington Central Business District had the highest vacancy rate at 26.4%.
Office rent per square foot has gone down by 56 cents, from $25.97 to $25.41. The declines were primarily in the B/C Class office space sector, while rates in the A sector remained about the same.
A shift to remote work has had a small effect on suburban vacancies, with DuPont Sustainable Solutions, formerly on Chestnut Road in Wilmington West, vacating 5,302 square feet of office space as it made the permanent shift to remote work.-30-