DELAWARE – OFFICE – INDUSTRIAL SECTOR NEWS
Delaware: Big Opportunities in a Small State by: Marie Cappello, Broker, Argossy International.
Don’t let its size deceive you. Delaware is a commercial real estate hub with a powerful, business-friendly engine. While it’s known for its historic charm and low taxes, what really gets my attention are the robust opportunities in its key sectors. This isn’t a state that’s a follower; it’s a leader, attracting some of the nation’s biggest companies and creating a fertile ground for savvy investors.
Office: A Targeted Play
- Delaware is the corporate home to a huge percentage of U.S. companies. This, combined with a strong finance and banking sector, has historically made office space a prime investment. While the national office market is facing headwinds from remote work, Delaware offers a unique, stabilizing factor: its corporate-friendly legal structure. Companies like Bank of America and Citigroup have a strong presence here, and this concentration of financial and professional services firms provides a stable tenant base.
- Our Take: This is a “flight to quality” market. While some Class B and C office spaces may struggle, prime, well-located buildings in Wilmington are performing well. A notable example is Incyte’s recent acquisition of two major downtown buildings, a clear signal of confidence in the market. For the bold investor, this could be the perfect time to find a great deal on a well-located office building.
Industrial: The Solid Performer
- The industrial sector in Delaware is a picture of stability. Its strategic location on the East Coast, with easy access to major metropolitan areas, makes it a logistics dream. The state’s industrial market is seeing a healthy balance of supply and demand, with a focus on spaces that can serve regional distribution needs. The “normalization” of the industrial market, where new construction is not outpacing demand, is a positive trend that helps stabilize rent and occupancy rates.
- Our Take: This is a safe and reliable bet. Industrial properties here are an excellent long-term investment. They are less volatile than other sectors and benefit from the state’s business-friendly policies.
Life Sciences: The Rising Star
From my perspective, the best investments in Delaware today are in the industrial and life sciences sectors. They offer stability and growth potential. The office market, while having its challenges, is showing signs of targeted strength, particularly in Wilmington. Delaware’s business-friendly climate and diverse economy make it a must-see for any savvy investor.
Ready to invest in this dynamic market? Explore our comprehensive Delaware commercial real estate listings.
For more on Wilmington’s commercial market, check out the latest report from Newmark. To better understand the robust nature of the life sciences sector in the region, the Philadelphia Life Sciences report offers valuable insights, as the Delaware and Philadelphia markets are closely linked.
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