Delaware Office Market
The removal of 704 N King Street from the competitive inventory lifted Wilmington CBD’s asking rates. Average rents grew $0.37/SF from the prior quarter to $26.36/SF, the highest average rent recorded in the Wilmington CBD since the fourth quarter of 2022. The leasing activity in the Delaware market demonstrated robust performance, surpassing recent leasing averages. Approximately 140,509 square feet of space was leased in the first quarter, a notable 13.5% higher than the 2020-2024 quarterly leasing average. Growth requirements of government-related entities have noticeably increased demand for office space in the first quarter of 2024. Total space requirements in the first quarter of 2024 comprised 2.7% of overall market inventory, a 40-basis point increase compared to the prior quarter.