12C — September 17 - October 21, 2021 — Fall Preview — M id A tlantic Real Estate Journal


CRE N etwork

ommercial real estate brokers in Delaware were much busier this By Joe Latina, Patterson Woods Commercial Properties / CORFAC International Delaware CRE Boasts Strong 2nd Quarter Numbers C

with continued double-digit growth. Looking at industrial leas- ing and vacancy rates, New Castle County industrial rates grew by nearly 12% in the 2nd Quarter of 2021 with rates av- eraging over $8.00 per square foot and vacancy rates hovering around a historically low 4%. Kent and Sussex industrial numbers were very strong av- eraging $6.00 per square foot and 6% vacancy. Multifamily rates are also rising rapidly, with New Castle County rates increased over 8%, Kent and Sussex counties

followed suit with Dover post- ing a staggering 14% rental rate growth. Retail real estate in Dela- ware is showing positive mo- mentum. Restaurants and hospitality are leading the surge, but with some hesi- tancy, as employment issues continue to hamper growth in these industries. Staffing is in short supply; it’s rare not to see a “help wanted” sign in your favorite restaurant, however restauranters are hopeful that changes to the unemployment benefits could begin to remedy the situation. Rates are up

slightly with the average retail rate in New Castle County coming in around $24 psf with 8% vacancy, Kent County around $16 and Sussex around $17 psf. Lastly – but importantly – of- fice real estate posted positive numbers for the first time since the pandemic, with the trend leaning toward suburban of- fice. Wilmington CBD rates still lead the way with the average new office rate coming in around $27 per square foot with NewCastle County subur- ban rates around $24 psf. This represents about a 1.5% rate

increase since the beginning of 2021. Vacancy rates remain high with the Wilmington CBD around 15% and around 8% for the rest of the county. Kent and Sussex are showing a slight uptick as well. Optimizing is at an all-time high as we continue our re- bound into 2021. The market is active, businesses have adapted and are expanding, and deals are getting done. We appear poised for a strong market through the remainder of 2021 and beyond. About Patterson-Woods\ Commercial Properties/ CORFAC International Patterson-Woods Commer- cial Properties/CORFAC In- ternational is a leading com- mercial real estate services firm specializing in the Mid- Atlantic commercial property markets. Joe Latina is principal at Patterson Woods Commer- cial Properties / CORFAC International and 2021 CORFAC International president. MAREJ What is Proptech, How Does it . . . eliminate the need for mort- gage brokers through automa- tion and thought perhaps I had entered a dying industry. Yet, somehow, I am still here. Commercial real estate cen- ters around inside knowledge, the kind which you would be locked up for in the securities business, and meaningful personal relationships built on trust and a mutual confi - dence in the other’s ability to perform. So rather than laud- ing every new app that comes along as the next big thing, it might make sense to be real with ourselves and ask what really makes the business go round and what tools we actually need to gain an edge. The answer lies in people. And the ones that work the most accurately, creatively, and efficiently, not the ones with the latest app, will generally outperform, at least for the time I have remaining in the workforce. R. Brenner Green is a 20-year veteran in commer- cial real estate finance and President of Real Property Capital, Inc., a full-service commercial mortgage bank- ing firm based in the Phila - delphia suburbs. MAREJ continued from page 5C

summer than in past years due to the c o n t i n u e d growth in all sectors of the market. As we continue to rebound from the pan-

Joe Latina

demic, harder-hit categories – such as retail and office – are slowly righting course, while industrial and multifamily remain market sector leaders

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