M id A tlantic Real Estate Journal — Fall Preview — 37
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R etail /M arket T rends By Joe Latina, LMT Commercial Realty/CORFAC International Delaware Retail Update
D
market consists of grocery- anchored shopping centers, newer regional centers in growth markets, high-traffic suburban locations and prop- erties combining restaurants, medical uses and service busi- nesses. Centers anchored by grocery, Target, Walmart, discount or other necessity retailers are particularly at- tractive because they benefit from recurring consumer traf- fic and relatively defensive tenant demand. Grocery is a particularly compelling theme. Lidl’s planned conversion of a former
Rite Aid location at the Shop- pes of Graylyn in Brandywine Hundred and Redner’s Mar- ket’s 52,000 s/f redevelopment of the former ACME location in Kirkwood Plaza Shopping Center illustrates how retail- ers are increasingly willing to take second-generation space when the demographics and traffic justify it. That trend could create opportunities for investors who own well-located but underutilized retail prop- erties. At the other end of the spec- trum are older enclosed malls, obsolete big-box space and
centers requiring substantial capital investment. The pro- posed redevelopment of Con- cord Mall in North Wilmington is emblematic of the shift. A plan filed in 2026 calls for replacing roughly 846,896 s/f of existing mall space with ap- proximately 233,100 s/f of new general retail while retaining some anchor buildings so the future of the site involves less, but more efficient retail space. That dynamic is likely to de- fine Delaware’s next phase of retail investment. Geographi - cally, the opportunities differ considerably. Middletown/MOT
stands out as the strongest growth market over the next three to five years, benefiting from new housing, limited existing supply and expand- ing retail demand. Newark offers one of the few remaining pedestrian, walking retail mar- kets. Christiana has one of the highest-grossing regional malls in the country. North Wilm- ington/Brandywine is a more mature market with strong demographics and limited new opportunities. In Sussex Coun- ty, Lewes, Rehoboth, Millsboro and Selbyville offer compelling continued on page 38
elaware retail demand remains healthy, new con-
struction is active but deliberate, vacancy r ema i ns low and redeve l - opment is reshaping the state’s retail landscape.
Joe Latina
Delaware’s retail market enters the fall of 2026 with a favorable combination of con- sumer demand, limited high- quality supply and continued residential growth. However, the market is becoming in- creasingly polarized. Modern, well-located grocery-anchored and service-oriented centers are attracting tenants and commanding strong rents, while older malls and obsolete big-box properties face a very different future. One of Delaware’s enduring advantages is its absence of a state sales tax, which helps attract shoppers from neigh- boring Pennsylvania, New Jer- sey and Maryland. Northern Delaware also benefits from strong household incomes, while communities such as Middletown and Southern New Castle County continue to add residents, and conse- quently, increased demand for restaurants, groceries, medical services and everyday consumer-related retail. Middletown is perhaps the clearest example. The 147,000 s/f Target-anchored Northside Shopping Center opened in 2024 and subsequently at- tracted Sprouts, PetSmart, Hobby Lobby and other well- known tenants. Middletown continues to be one of Delaware’s fastest-growing markets. Yet developers are not flooding the market with speculative construction. Ap- proximately 311,000 s/f of retail was under construction statewide at the end of 2025, while roughly 4.55 million s/f was identified in the develop - ment pipeline. The distinction matters: much of that pipeline may never be built. Higher construction costs, financing constraints and the need for meaningful tenant commit- ments have made developers far more selective. For existing properties, that discipline can be a positive. The strongest segment of the
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