Report: Second quarter proves daunting for Wilmington office market

A handful of high-profile vacancies have caused a dip in Wilmington’s office market, according to a quarterly report from Newmark Knight Frank.

The vacancy rate rose from 14.3 to 16.6 percent, largely due to the long-anticipated withdrawal of Bank of America from Bracebridge I and III.

One major occupancy in the suburban market helped to the buoy overall vacancy rate: Connections CSP moved into 64,992 square feet at 590 Naamans Road.

Downtown the picture looks more dire.

The current vacancy rate in the Wilmington Central Business District is 22.7 percent, one of the highest rates of any office submarket in the Greater Philadelphia region. The last time the rate reached comparable heights was in 2015 when Ashland Inc. left Hercules Plaza.

There was a slight leveling effect due to the transfer of office space into other uses, including the sale of 1220 North Market Street to Driftwood Hospitality Management for a hotel conversion.

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